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The program is positioned in an extremely strange and non-helpful governmental place for the stimulation of international financial investment in the United States. Second, its range is all wrong. We are distributing excessive for as well small of a financial investment. Even more, increasing venture resources fifty percent a million dollars a tranche is, to say the least, inefficient.


The local centers, with their half-million systems, basically undercut the much more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they do in Australia, ought to be concerning developing company entities, not easy financial investments. It must have to do with developing genuine work, not elaborate calculations regarding the indirect creation of jobs, which is currently part of the regulations.


Possibly that is one of the reasons why it has actually failed time after time to reach the legislative goal of 10,000 investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is as well loaded with middlemen, both public and exclusive. The program has more than its share of scandals, which I will certainly obtain right into later on if anyone is interested.


This is an agency that likes to claim yes to applicants, however as the table in my statement shows, USCIS policemans have a lot more difficulty with EB-5 applications than others. I think that is something that nobody has actually spoken about much. EB5 Regional Center Program. There are high rates of interior rejections in this program and completely reason

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Seventh, in this program visas most likely to individuals who might not get them otherwise and to people whose planned investment is actually much less, according to the Federal Get, than the typical mean total assets of all American households in 2007. Let me increase on among my observations.


My quote based on the financiers' eco-friendly card applications submitted 2 years after the very first financial investment-- these are the strong ones that remain and are accepted. This is 2009-- was that they had regarding $191 million confirmed-- that is my price quote. USCIS does not give the kind of information that we could utilize on this.


For every $100 of boosted foreign financial investment that year, the EB program contributed one dime. Under a a lot more shaky statistical base, the preliminary applications of potential immigrant financiers, USCIS is informing journalists that the level of financial investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thanks for listening to me. I anticipate your remarks and concerns. [The prepared statement of David North looks like a submission for the record.] Chairman Leahy. Thank you. Our following witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's migration technique group.




Divine worked as Chief Guidance of the USA Citizenship and Immigration Solutions from July 2004 until November 2006, the year in which he was Performing Supervisor, and then Performing Replacement Supervisor. He has worked extensively with the EB-5 program secretive method. He was elected, as I understand, vice head of state of the Association to Spend in United States, the national industry organization of local.


STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At a lot of, if all 10,000 slots were utilized, it would certainly be 1 percent of the migration annually to the USA. It is not near that yet, but it is growing and obtaining towards that. Particularly as USCIS, the company that manages the program, has been making the guidelines more clear and the procedures much more rational and clear for the individuals who are arranging investments and for the investors that are spending, more individuals have actually wanted and able to place effort and cash into the procedure to discover excellent projects and establish them, and afterwards extra capitalists have been ready to invest their money and take the danger and make use of the money to develop the work that is the point of the program.

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These tasks do not wait around for life, and USCIS comprehends that and are trying to speed up the program, speed the process - EB5 Regional Center Program. That does not indicate that they are unwinding their examination, and, in fact, they prepare to refute applications that are not qualifying. And they do so, as was mentioned


The regional center component of the program is not. It becomes part of an appropriations bill that was passed in 1992, and ever since that program has been extended five times for 19 years. It is time for it to be permanent, and it requires to be done currently and not nearer to the date of expiry in September.


The process takes a great while to work up a task and after that to get the investors authorized. And they do not desire their cash flowing with up until they have been accepted. And the specter of the expiration of this Regional Facility Program in September is already discouraging the growth of jobs.

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I want to make clear that the Regional Center Program click here is not the like the half-million-dollar point. The idea of half a million or a million is a feature of the regular EB-5 law that is part of the code. It just is a truth that the majority of the regional centers that are merging financial investments have established those instead of high unemployment or in country locations where fifty percent- million-dollar financial investments are permitted, which makes good sense.