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The program is positioned in an extremely strange and non-helpful administrative location for the stimulation of global financial investment in the United States. Second, its scale is all incorrect. We are handing out excessive for as well tiny of an investment. Better, increasing financial backing fifty percent a million dollars a tranche is, to say the least, inefficient.


The local centers, with their half-million schemes, essentially undercut the a lot more practical million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, must be about creating business entities, not easy investments. It needs to have to do with producing real work, not clarify calculations concerning the indirect development of work, which is now component of the regulations.


Perhaps that is just one of the reasons it has stopped working year after year to reach the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is as well full of middlemen, both public and private. The program has greater than its share of rumors, which I will enter into later if anyone is interested.


This is an agency that enjoys to say yes to candidates, yet as the table in my testimony reveals, USCIS officers have far more trouble with EB-5 applications than others. I believe that is something that no one has actually really spoken about a lot. EB5 Regional Center Program. There are high rates of interior rejections in this program and permanently reason

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Seventh, in this program visas go to people who can not get them differently and to people whose planned investment is actually less, according to the Federal Reserve, than the average mean web well worth of all American families in 2007. Let me broaden on among my observations.


My quote based on the capitalists' permit applications submitted 2 years after the very first investment-- these are the solid ones that stay and are authorized. This is 2009-- was that they had about $191 million verified-- that is my price quote. USCIS does not give the sort of information that we can use on this.


For every $100 of raised international investment that year, the EB program contributed one dime. Under a a lot more unsteady analytical base, the first applications of would-be immigrant capitalists, USCIS is telling journalists that the level of investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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Thanks for paying attention to me. I anticipate your comments and concerns. [The prepared statement of David North looks like an entry for the record.] Chairman Leahy. Thank you. Our following witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's immigration practice group.




Divine worked as Principal Advise of the United States Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Acting Director, and after that Performing Replacement Supervisor. check here He has worked thoroughly with the EB-5 program in personal technique. He was chosen, as I comprehend, vice head of state of the Organization to Invest in U.S.A., the national sector organization of regional.


Divine, we are delighted to have you right here. Please proceed, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, PURCHASE THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At a lot of, 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 growing and obtaining toward that. Specifically as USCIS, the company that manages the program, has been making the policies clearer and the procedures a lot more reasonable and clear for the people who are organizing investments and for the investors that are investing, more individuals have wanted and able to put effort and money into the procedure to find great tasks and develop them, and after that extra financiers have actually agreed to invest their cash and take the threat and use the money to produce the work that is the factor of the program.

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These tasks do not linger 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 suggest that they are unwinding their analysis, and, as a matter of fact, they are ready to deny applications that are not qualifying. And they do so, as was discussed


The regional center part of the program is not. It becomes part of an appropriations expense that was established in 1992, and ever since that program has been expanded five 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 expiry in September.


The process takes an excellent while to work up a job and afterwards to get the financiers accepted. And they do not want their cash flowing with till they have been accepted. And the specter of the expiration of this Regional Facility Program in September is currently preventing the growth of jobs.

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I wish to clarify that the Regional Facility Program is not the like the half-million-dollar point. The concept of half a million or a million is a feature of the regular EB-5 law that becomes part of the code. It simply is a fact that most of the regional centers that are merging investments have set those in locations of high joblessness or in backwoods where fifty percent- million-dollar financial investments are enabled, which makes good sense.