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The program is positioned in a very strange and non-helpful governmental location for the excitement of international investment in the United States. Second, its range is all wrong. We are handing out as well much for too small of an investment. Further, raising equity capital fifty percent a million dollars a tranche is, to say the least, ineffective.

The local facilities, with their half-million schemes, basically damaged the more practical million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, must have to do with producing organization entities, not passive financial investments. It should be regarding developing real tasks, not elaborate computations about the indirect creation of work, which is currently part of the legislation.


Probably that is just one of the reasons why it has fallen short every year to get to the legal goal of 10,000 investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is also full of intermediaries, both public and personal. The program has greater than its share of scandals, which I will certainly get involved in later on if anybody is interested.


This is a firm that likes to claim yes to candidates, but as the table in my statement reveals, USCIS police officers have much extra trouble with EB-5 applications than others. I think that is something that nobody has actually actually discussed much. EB5 Regional Center Program. There are high prices of inner denials in this program and forever reason

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Seventh, in this program visas most likely to individuals that could not get them differently and to individuals whose scheduled investment is in fact much less, according to the Federal Book, than the ordinary mean total assets of all American family members in 2007. Let me broaden on one of my observations.


My price quote based upon the investors' environment-friendly card applications filed 2 years after the very first investment-- these are the solid ones that remain and are accepted. This is 2009-- was that they had about $191 million verified-- that is my price quote. USCIS does not supply the type of data that we might use on this.


So for every single $100 of boosted foreign investment that year, the EB program added one penny. Under a much extra wobbly statistical base, the initial applications of potential immigrant capitalists, USCIS is informing journalists that the degree 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 listening to me. Chairman Leahy. He is the head of the company's immigration technique group.

Divine served as Principal Counsel of the United States Citizenship and Migration Providers from July 2004 up until November 2006, the year in which he was Performing Director, and afterwards Performing Deputy Director. He has actually functioned extensively with the EB-5 program secretive technique. He was chosen, as I comprehend, vice head of state of the Association to Spend in USA, the nationwide market association of local.


Divine, we are delighted to have you right here. Please go on, 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. Thank you, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At many, if all 10,000 slots were utilized, it would certainly be 1 percent of the immigration annually to the United States. It is not near that yet, yet it is expanding and obtaining toward that. Especially as USCIS, the company that supervises the program, has actually been making EB5 Regional Center Program the guidelines more clear and the processes more reasonable and clear for the people who are arranging financial investments and for the financiers who are investing, even more people have been prepared and able to put effort and money right into the procedure to find great jobs and establish them, and afterwards extra investors have wanted to spend their money and take the danger and make use of the money to create the work that is the factor of the program.

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These tasks do not wait about for life, and USCIS understands that and are attempting to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not mean that they are relaxing their analysis, and, as a matter of fact, they prepare to reject applications that are not certifying. And they do so, as was discussed

The local facility part of the program is not. It becomes part of an appropriations bill that was established in 1992, and given that then that program has actually been expanded 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 good while to work up a project and after that to get the financiers accepted. And they do not want their money streaming with up until they have been accepted. And the specter of the expiration of this Regional Facility Program in September is currently dissuading the advancement of jobs.

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I wish to clear up that the Regional Center Program is not the like the half-million-dollar point. The idea of half a million or a million is a feature of the normal EB-5 law that belongs to the code. It just is a truth that many of the regional facilities that are merging financial investments have established those instead of high unemployment or in country locations where half- million-dollar investments are allowed, which makes feeling.