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Initially, the program is placed in a very odd and non-helpful governmental location for the stimulation of international investment in the USA. Second, its range is all incorrect. We are distributing excessive for too small of a financial investment. Further, elevating venture capital half a million dollars a tranche is, to say the least, ineffective.


The regional facilities, with their half-million plans, essentially undercut the a lot more practical million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they perform in Australia, must have to do with developing company entities, not easy investments. It must be about producing real tasks, not elaborate calculations regarding the indirect development of tasks, which is currently component of the legislation.


Perhaps that is one of the reasons it has fallen short every year to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is as well loaded with intermediaries, both public and personal. The program has more than its share of detractions, which I will get involved in later on if anyone is interested.


This is a firm that loves to state yes to applicants, but as the table in my testimony reveals, USCIS police officers have a lot more difficulty with EB-5 applications than others. I believe that is something that no one has truly spoken about much. EB5 Regional Center Program. There are high prices of inner rejections in this program and completely factor

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Seventh, in this program visas most likely to people that might not get them any type of other method and to individuals whose planned financial investment is actually much less, according to the Federal Book, than the typical mean internet worth of all American family members in 2007. Allow me increase on among my monitorings.


My estimate based upon the investors' permit applications submitted 2 years after the initial financial investment-- these are the strong ones that continue to be and are accepted. This is 2009-- was that they had about $191 million validated-- that is my estimate. USCIS does not provide the kind of data that we might utilize on this.


For every $100 of enhanced international financial investment that year, the EB program contributed one cent. Under a a lot more wobbly analytical base, the initial applications of would-be immigrant financiers, USCIS is telling reporters that the degree of financial investment in the just-concluded year had to do with $1.2 billion. Let us approve that.

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




Divine worked as Chief Advise of the United States Citizenship and Immigration Services from July 2004 until November 2006, the year in which he was Acting Director, and after that Performing Replacement Supervisor. He has actually worked extensively with the EB-5 program in private technique. He was elected, as I comprehend, vice president of the Organization to Buy United States, the national sector association of local facilities.


STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others.


At many, if all 10,000 ports were used, it would certainly be 1 percent of the immigration every year to the United States. It is not near that yet, however it is expanding and obtaining toward that. Particularly as USCIS, the agency that looks after the program, has been making the regulations more clear and the procedures much more sensible and clear for individuals who are arranging investments and for the investors who are investing, even more individuals have actually been prepared and able to put effort and money into the process to find good jobs and website establish them, and then more capitalists have actually agreed to spend their cash and take the danger and use the cash to develop the jobs that is the factor of the program.

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These jobs do not wait about permanently, and USCIS comprehends that and are attempting to speed the program, speed up the process - EB5 Regional Center Program. That does not imply that they are relaxing their scrutiny, and, as a matter of fact, they prepare to deny applications that are not certifying. And they do so, as was mentioned


The local facility component of the program is not. It becomes part of an appropriations costs that was passed in 1992, and ever since that program has been extended five times for 19 years. It is time for it to be long-term, and it requires to be done now and not nearer to the date of expiration in September.


The process takes a great while to develop a project and after that to obtain the investors authorized. And they do not want their money flowing with up until they have been authorized. And the specter of the expiration of this Regional Facility Program in September is currently discouraging the growth of jobs.

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I wish to make clear that the Regional Center Program is not the exact same as the half-million-dollar thing. The idea of half a million or a million is a feature of the routine EB-5 legislation that is component of the code. It simply is a fact that a lot of the regional centers that are pooling investments have set those in areas of high joblessness or in country locations where fifty percent- million-dollar investments are allowed, and that makes good sense.