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First, the program is placed in a very odd and non-helpful bureaucratic place for the stimulation of worldwide financial investment in the USA. Second, its scale is all wrong. We are distributing way too much for as well little of an investment. Even more, elevating venture capital fifty percent a million dollars a tranche is, to claim the least, ineffective.


The local facilities, with their half-million plans, basically undercut the more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they do in Australia, ought to be concerning creating organization entities, not passive financial investments. It should be concerning developing real tasks, not clarify calculations regarding the indirect production of work, which is now component of the regulation.


Probably that is just one of the reasons why it has fallen short year after year to reach the legal objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is also full of middlemen, both public and personal. The program has even more than its share of scandals, which I will certainly enter into later on if any person is interested.


This is a firm that enjoys to state yes to applicants, but as the table in my statement shows, USCIS police officers have a lot more difficulty with EB-5 applications than others. I believe that is something that nobody has truly discussed much. EB5 Regional Center Program. There are high rates of internal rejections in this program and permanently reason

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Seventh, in this program visas go to people that could not obtain them any other means and to individuals whose organized financial investment is in fact much less, according to the Federal Get, than the typical mean total assets of all American family members in 2007. Allow me expand on one of my observations.


My price quote based upon the investors' eco-friendly card applications submitted 2 years after the first investment-- these are the solid ones that stay and are approved. This is 2009-- was that they had about $191 million confirmed-- that is my estimate. USCIS does not offer the sort of data that we can use on this.


For every $100 of raised international financial investment that year, the EB program contributed one penny. Under a a lot more unsteady analytical base, the first applications of prospective immigrant capitalists, USCIS is telling journalists that the degree of investment in the just-concluded year had to do with $1.2 billion. Let us approve that.

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Thank you for paying attention to me. Chairman Leahy. He is the head of the firm's migration technique group.




Divine go to this website served as Principal Advise pop over to these guys of the United States Citizenship and Migration Solutions from July 2004 up until November 2006, the year in which he was Performing Supervisor, and after that Acting Deputy Director. He has actually functioned extensively with the EB-5 program in private practice. He was elected, as I recognize, vice president of the Association to Invest in U.S.A., the nationwide market association of regional centers.


Divine, we are happy to have you here. Please go in advance, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At a lot of, if all 10,000 ports were made use of, it would certainly be 1 percent of the immigration yearly to the United States. It is not near that yet, however it is growing and getting toward that. Specifically as USCIS, the company that looks after the program, has been making the guidelines more clear and the procedures much more sensible and clear for individuals that are arranging investments and for the financiers that are spending, even more individuals have wanted and able to place initiative and cash into the process to find good projects and develop them, and then much more financiers have actually wanted to spend their money and take the danger and use the money to produce the tasks that is the factor of the program.

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These tasks do not wait about for life, and USCIS recognizes that and are attempting to speed up Continue the program, speed the process - EB5 Regional Center Program. That does not indicate that they are relaxing their scrutiny, and, as a matter of fact, they prepare to refute applications that are not qualifying. And they do so, as was mentioned


The local facility component of the program is not. It belongs to an appropriations bill that was enacted in 1992, and ever since that program has actually been extended five times for 19 years. It is time for it to be long-term, and it needs to be done now and not nearer to the day of expiry in September.


The procedure takes an excellent while to develop a project and afterwards to obtain the investors approved. And they do not want their money flowing with till they have been authorized. And the specter of the expiry of this Regional Facility Program in September is already 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 thing. The idea of half a million or a million is a feature of the routine EB-5 law that belongs to the code. It just is a fact that a lot of the regional facilities that are pooling financial investments have established those instead of high joblessness or in rural locations where half- million-dollar financial investments are permitted, and that makes good sense.