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First, the program is placed in a really strange and non-helpful bureaucratic location for the excitement of global investment in the United States. Second, its scale is all wrong. We are handing out excessive for as well little of an investment. Further, increasing equity capital half a million bucks a tranche is, to state the least, inefficient.


The local facilities, with their half-million systems, basically damaged the more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they perform in Australia, must be regarding producing organization entities, not easy financial investments. It must be concerning developing real jobs, not elaborate calculations about the indirect creation of work, which is currently component of the regulations.


Possibly that is one of the reasons that it has stopped working time after time to get to the legal objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is also loaded with intermediaries, both public and private. The program has more than its share of detractions, which I will get into later if any person is interested.


This is a company that likes to say yes to candidates, but as the table in my testament shows, USCIS policemans have far more problem with EB-5 applications than others. I believe that is something that nobody has actually truly discussed much. EB5 Regional Center Program. There are high prices of inner rejections in this program and permanently factor

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Seventh, in this program visas go to individuals that could not obtain them otherwise and to people whose scheduled investment is actually less, according to the Federal Get, than the typical mean total assets of all American families in 2007. Let me broaden on one of my observations.


My estimate based upon the financiers' environment-friendly card applications filed 2 years after the initial financial investment-- these are the strong ones that continue to be and are authorized. This is 2009-- was that they had regarding $191 million verified-- that is my estimate. USCIS does not supply the kind of information that we could use on this.


For every $100 of raised foreign financial investment that year, the EB program added one cent. Under a much more wobbly statistical base, the initial applications of potential immigrant financiers, USCIS is informing reporters that the degree of investment in the just-concluded year was about $1.2 billion. Let us accept that.

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Thank you for listening to me. Chairman Leahy. He is the head of the company's immigration practice team.




Divine offered as Principal Counsel of the USA Citizenship and Immigration Providers from July 2004 until November 2006, the year in which he was Acting Director, and afterwards Performing Replacement here Supervisor. He has worked extensively with the EB-5 program in personal method. He was chosen, as I understand, vice president of the Organization to Spend in USA, the national industry association of regional.


Divine, we are delighted to have you right here. Please proceed, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, BUY THE United States (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At a lot of, if all 10,000 slots were used, it would be 1 percent of the immigration annually to the United States. It is not near that yet, but it is expanding and obtaining towards that. Especially as USCIS, the agency that supervises the program, has been making the rules more clear and the procedures a lot more reasonable and clear for the people who are arranging financial investments and for the financiers who are spending, even more people have agreed and able to put effort and cash into the procedure to locate great projects and develop them, and after that a lot more financiers have agreed to spend their money and take the threat and make use of the cash to produce the jobs that is the factor of the program.

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These projects do not wait around forever, and USCIS recognizes that and are trying to speed the program, speed the process - EB5 Regional Center Program. That does not mean that they are unwinding their scrutiny, and, as a matter of fact, they are ready to reject applications that are not qualifying. And they do so, as was mentioned


The regional center component of the program is not. It belongs to an appropriations expense that was passed in 1992, and considering that then that program has been extended five times for 19 years. It is time for it to be permanent, and it requires to be done now and not nearer to the date of expiration in September.


The process takes a great while to work up a project and then to obtain the capitalists authorized. And they do not want their money flowing through till they have actually been approved. And the specter of the expiration of this Regional Facility Program in September is currently preventing the advancement of projects.

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I would certainly like to make clear that the Regional Facility Program is not the like the half-million-dollar point. The idea of half a million or a million is a function of the normal EB-5 legislation that is component of the code. It just is a truth that the majority of the regional facilities that are pooling financial investments have set those instead of high unemployment or in country areas where fifty percent- million-dollar investments are enabled, and that makes good sense.