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The program is placed in an extremely weird and non-helpful administrative location for the stimulation of global financial investment in the United States. Second, its range is all incorrect. We are handing out excessive for as well tiny of a financial investment. Further, raising endeavor resources half a million dollars a tranche is, to say the least, ineffective.


The local centers, with their half-million plans, essentially undercut the extra sensible million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they do in Australia, should be about developing business entities, not easy financial investments. It must have to do with producing actual work, not specify estimations regarding the indirect creation of jobs, which is now part of the regulations.


Maybe that is just one of the reasons it has stopped working every year to reach the legislative goal of 10,000 investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is as well filled up with intermediaries, both public and private. The program has greater than its share of detractions, which I will certainly enter into later if anyone is interested.


This is a firm that loves to say yes to applicants, yet as the table in my statement shows, USCIS policemans have much more problem with EB-5 applications than others. I think that is something that nobody has truly spoken about a lot. EB5 Regional Center Program. There are high rates of inner rejections in this program and permanently reason

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Seventh, in this program visas most likely to individuals that could not obtain them differently and to people whose organized investment is really much less, according to the Federal Get, than the typical mean total assets of all American households in 2007. Allow me broaden on among my monitorings.


My estimate based upon the capitalists' permit applications submitted 2 years after the first financial investment-- these are the solid ones that stay and are authorized. This is 2009-- was that they had regarding $191 million validated-- that is my quote. USCIS does not give the kind of data that we might use on this.


For every $100 of raised foreign financial investment that year, the EB program added one dime. Under a much more unsteady statistical base, the initial applications of potential immigrant investors, USCIS is telling reporters that the degree of investment in the just-concluded year was about $1.2 billion. Let us accept that.

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Thanks for listening to me. I anticipate your comments and concerns. [The prepared declaration of David North shows up as an entry for the record.] Chairman Leahy. Thanks. Our next witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's migration method group.




Divine acted as Chief Advice of the United States Citizenship and Migration Providers from July 2004 till November 2006, the year in which he was Acting Supervisor, and then Acting Replacement Supervisor. He has actually worked thoroughly with the EB-5 program secretive method. He was chosen, as I understand, vice president of the Organization to Spend in USA, the nationwide sector association of click here regional.


Divine, we are happy to have you here. Please go ahead, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY THE United States (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At a lot of, if all 10,000 ports were used, it would certainly be 1 percent of the migration every year to the USA. It is not near that yet, yet it is growing and obtaining toward that. Especially as USCIS, the firm that oversees the program, has been making the rules clearer and the processes much more rational and clear for the individuals who are arranging financial investments and for the capitalists who are spending, even more people have agreed and able to put effort and money into the process to discover great jobs and develop them, and then more financiers have agreed to invest their cash and take the threat and use the cash to create the jobs that is the factor of the program.

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These tasks do not wait about forever, and USCIS recognizes that and are trying to speed the program, speed the process - EB5 Regional Center Program. That does not suggest that they are unwinding their examination, and, as a matter of fact, they are ready to refute applications that are not qualifying. And they do so, as was stated


The local facility part of the program is not. It is part of an appropriations expense that was enacted in 1992, and considering that then that program has been expanded five times for 19 years. It is time for it to be irreversible, and it needs to be done currently and not nearer to the day of expiration in September.


The process takes an excellent while to develop a project and then to obtain the capitalists accepted. And they do not want their money flowing through until they have actually been approved. And the specter of the expiration of this Regional Facility Program in September is already discouraging the development of jobs.

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I wish to clear up 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 function of the regular EB-5 law that is component of the code. It simply is a fact that the majority of the local facilities that are merging investments have set those instead of high joblessness or in backwoods where half- million-dollar financial investments are permitted, which makes sense.