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The program is positioned in a very strange and non-helpful governmental location for the excitement of global financial investment in the United States. Second, its scale is all wrong. We are distributing excessive for also small of a financial investment. Even more, raising equity capital half a million dollars a tranche is, to claim the least, inefficient.

The regional centers, with their half-million plans, essentially damaged the much more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, ought to be concerning developing company entities, not easy investments. It ought to have to do with producing actual tasks, not clarify calculations concerning the indirect development of jobs, which is now component of the regulations.

Maybe that is among the reasons it has stopped working every year to reach the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is also loaded with intermediaries, both public and personal. The program has greater than its share of detractions, which I will certainly get involved in later if anyone is interested.

This is a firm that enjoys to say yes to applicants, but as the table in my testament reveals, USCIS policemans have a lot more difficulty with EB-5 applications than others. I believe that is something that nobody has actually spoken around much. EB5 Regional Center Program. There are high rates of interior rejections in this program and for good reason

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Seventh, in this program visas most likely to individuals who can not get them differently and to individuals whose planned financial investment is in fact much less, according to the Federal Get, than the ordinary mean total assets of all American family members in 2007. Let me expand on one of my observations.

My estimate based on the investors' eco-friendly card applications filed 2 years after the first investment-- these are the strong ones that stay and are authorized. This is 2009-- was that they had concerning $191 million confirmed-- that is my price quote. USCIS does not give the kind of data that we might use on this.

So for each $100 of raised foreign financial investment that year, the EB program added one cent. Under a far more wobbly statistical base, the first applications of prospective immigrant financiers, USCIS is telling reporters that the level of financial investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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Thank you for paying attention to me. Chairman Leahy. He is the head of the firm's immigration method team.


Divine worked as Principal Guidance of the United States Citizenship and Migration Providers from July 2004 up until November 2006, the year in which he was Acting Director, and afterwards Performing Deputy Director. He has functioned thoroughly with the EB-5 program in exclusive practice. He was elected, as I comprehend, vice president of the Association to Purchase United States, the nationwide market organization of local facilities.

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

At most, if all 10,000 ports were utilized, it would be 1 percent of the immigration yearly to the USA. It is not near that yet, but it is growing and obtaining toward that. Especially as USCIS, the company that looks after the program, has actually been making the guidelines clearer and the processes extra logical and clear for individuals that are arranging investments and for the capitalists that are investing, even more people have wanted and able to put initiative and cash into the process to find good projects and create them, and afterwards much more financiers have actually agreed to invest their money and take the risk and utilize the cash to produce the jobs that is the point of the program.

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These projects do not wait about permanently, and USCIS understands that and are attempting to speed the program, speed up the procedure - EB5 Regional Center Program. That does not suggest that they are unwinding their analysis, and, as a matter of fact, they prepare to deny applications that are not qualifying. And they do so, as was pointed out

The local center component of the program is not. It is part of an appropriations expense that more info was enacted in 1992, and given that then that program has actually been prolonged 5 times for 19 years. It is time for it to be irreversible, and it requires to be done now and not nearer to the day of expiration in September.

The procedure takes an excellent while to work up a job and afterwards to get the financiers accepted. And they do not desire their cash streaming through till they have been approved. And the specter of the expiration of this Regional Facility Program in September is currently discouraging the development of projects.

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I would love to clear up that the Regional Facility Program is not the same as the half-million-dollar thing. The idea of half a million or a million is a function of the regular EB-5 legislation that is component of the code. It just is a reality that the majority of the regional centers that are pooling investments have set those in locations of high unemployment or in rural areas where fifty percent- million-dollar investments are permitted, and that makes good sense.

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