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First, the program is put in an extremely weird and non-helpful governmental location for the stimulation of international investment in the USA. Second, its scale is all wrong. We are handing out too much for as well tiny of a financial investment. Additionally, elevating equity capital half a million dollars a tranche is, to state the least, ineffective.

The local facilities, with their half-million systems, essentially undercut the much more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they perform in Australia, need to have to do with creating organization entities, not easy investments. It ought to be about producing real jobs, not clarify estimations about the indirect creation of tasks, which is currently part of the regulations.

Probably that is just one of the reasons why it has actually fallen short year after year to reach the legislative goal of 10,000 investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is too filled up with intermediaries, both public and exclusive. The program has even more than its share of scandals, which I will certainly enter later if anybody is interested.

This is an agency that loves to state yes to applicants, however as the table in my testimony shows, USCIS officers have far more difficulty with EB-5 applications than others. I assume that is something that nobody has actually actually discussed a lot. EB5 Regional Center Program. There are high rates of internal rejections in this program and permanently factor

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Seventh, in this program visas most likely to individuals who might not get them differently and to people whose scheduled financial investment is in fact much less, according to the Federal Reserve, 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 capitalists' permit applications filed 2 years after the very first financial investment-- these are the strong ones that stay and are authorized. This is 2009-- was that they had about $191 million verified-- that is my quote. USCIS does not supply the kind of data that we can utilize on this.

So for each $100 of increased international investment that year, the EB program added one cent. Under a far more unsteady statistical base, the preliminary applications of would-be immigrant financiers, USCIS is telling journalists that the level of financial investment in the just-concluded year was about $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 company's immigration method team.


Divine served as Chief Guidance of the USA Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Acting Supervisor, and then Acting Replacement Supervisor. He has actually worked extensively with the EB-5 program in personal technique. He was elected, as I comprehend, vice president of the Organization to Invest in USA, the nationwide sector association of regional.

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

At the majority of, if all 10,000 slots were used, it would be 1 percent of the migration each year to the United States. It is not near that yet, but it is growing and getting toward that. Especially as USCIS, the firm that oversees the program, has been making the guidelines clearer and the processes a lot more rational and clear for the people visit their website who are organizing financial investments and for the investors who are spending, even more individuals have wanted and able to place initiative and cash right into the procedure to discover good tasks and create them, and afterwards more investors have actually agreed to spend their cash and take the risk and use the cash to develop the tasks that is the point of the program.

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These jobs do not wait around permanently, and USCIS understands that and are trying to speed the my blog program, speed the procedure - EB5 Regional Center Program. That does not mean that they are relaxing their examination, and, in fact, they are ready to refute applications that are not certifying. And they do so, as was pointed out

The local center component of the program is not. It becomes part of an appropriations bill that was established in 1992, and ever since that program has been prolonged 5 times for 19 years. It is time for it to be permanent, and it needs to be done now and not nearer to the date of expiration in September.

The procedure takes a great while to develop a job and after that to get the financiers authorized. And they do not desire their cash streaming with up until they have been approved. And the specter of the expiry of this Regional Facility Program in September is already dissuading the development of projects.

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I wish to clarify that the Regional look these up Facility Program is not the like the half-million-dollar point. The idea of half a million or a million is a feature of the routine EB-5 law that becomes part of the code. It just is a fact that a lot of the local centers that are merging investments have actually established those in places of high joblessness or in backwoods where half- million-dollar financial investments are allowed, which makes good sense.

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