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First, the program is positioned in a very strange and non-helpful governmental place for the excitement of worldwide financial investment in the United States. Second, its range is all wrong. We are handing out as well much for also little of a financial investment. Even more, raising equity capital fifty percent a million bucks a tranche is, to state the least, ineffective.


The local centers, with their half-million plans, essentially damaged the much more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they do in Australia, need to be regarding producing business entities, not passive financial investments. It ought to be concerning creating genuine work, not specify calculations regarding the indirect production of work, which is now part of the regulation.


Perhaps that is among the reasons it has actually fallen short every year to get to the legal objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is too loaded with intermediaries, both public and exclusive. The program has greater than its share of scandals, which I will get right into later if anybody is interested.


This is a firm that enjoys to say yes to candidates, yet as the table in my testimony reveals, USCIS officers have a lot more trouble with EB-5 applications than others. I assume that is something that no one has actually actually spoken about much. EB5 Regional Center Program. There are high rates of internal rejections in this program and for excellent factor

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Seventh, in this program visas most likely to people that might not get them any kind of other way and to individuals whose organized investment is actually much less, according to the Federal Book, than the average mean total assets of all American family members in 2007. Allow me expand on among my observations.


My estimate based on the financiers' permit applications submitted 2 years after the very first financial investment-- these are the solid ones that continue to be and are authorized. This is 2009-- was that they had about $191 million validated-- that is my quote. USCIS does not provide the type of information that we might make use of on this.


For every $100 of increased international financial investment that year, the EB program contributed one dime. Under a much extra wobbly analytical base, the initial applications of prospective immigrant financiers, USCIS is informing journalists that the level 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 paying attention to me. Chairman Leahy. He is the head of the company's immigration practice group.




Divine served as Chief Advise of the USA Citizenship and Immigration Services from July 2004 until November 2006, the year in which he was Performing Director, and then Performing Replacement Director. He has worked thoroughly with the EB-5 program in private method. He was elected, as I recognize, vice president of the Organization to Invest in U.S.A., the national market organization of regional.


Divine, we are happy to have you right here. Please go in advance, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY THE U.S.A. (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At a lot of, if all 10,000 slots were used, it would certainly be 1 percent of the immigration annually to the United States. It is not near that yet, however it is growing and obtaining toward that. Specifically as USCIS, the agency that manages the program, has actually been making the regulations clearer and the processes more logical and clear for the individuals that are arranging investments and for the investors who are investing, even more individuals have been prepared and able to place initiative and cash right into the process to find good projects and develop them, and afterwards a lot more capitalists have actually agreed to invest their money and take the danger and make use of the cash to produce the work that is the point of the program.

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These projects do not wait about for life, and USCIS recognizes that and are attempting to speed up the program, speed the process - EB5 Regional Center Program. That does not mean that EB5 Regional Center Program they are unwinding their examination, and, actually, they are prepared to deny applications that are not certifying. And they do so, as was pointed out


The local facility component of the program is not. It belongs to an appropriations bill that was established in 1992, and ever since that program has actually been expanded 5 times for 19 years. It is time for it to be irreversible, and it needs to be done now and not nearer to the day of expiration in September.


The procedure takes a great while to work up a job and afterwards to get the capitalists approved. And they do not want their cash streaming via until they have actually been authorized. And the specter of the expiration of this Regional Facility Program in September is currently preventing the development of tasks.

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I want to clear up 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 routine EB-5 legislation that becomes part of the code. It just is a fact that a lot of the local facilities that are pooling financial investments have established those instead of high joblessness or in backwoods where half- million-dollar investments are allowed, which makes sense.