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Initially, the program is positioned in a really weird and non-helpful administrative location for the excitement of international financial investment in the United States. Second, its scale is all incorrect. We are offering away also much for also little of an investment. Additionally, raising equity capital half a million bucks a tranche is, to claim the least, ineffective.


The local facilities, with their half-million systems, basically undercut the extra reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they do in Australia, must have to do with producing business entities, not passive financial investments. It needs to be about developing genuine tasks, not clarify computations regarding the indirect creation of work, which is currently component of the regulations.


Possibly that is among the reasons that it has fallen short year after year to get to the legislative goal of 10,000 investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is also loaded with middlemen, both public and personal. The program has greater than its share of detractions, which I will certainly get involved in later if any person is interested.


This is an agency that likes to state yes to applicants, yet as the table in my testament reveals, USCIS police officers have a lot more difficulty with EB-5 applications than others. I think that is something that no one has really spoken about much. EB5 Regional Center Program. There are high rates of interior denials in this program and forever factor

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Seventh, in this program visas most likely to people that could not get them otherwise and to people whose planned investment is really much less, according to the Federal Get, than the ordinary mean total assets of all American families in 2007. Allow me increase on among my observations.


My quote based upon the investors' permit applications submitted 2 years after the initial investment-- these are the strong ones that remain and are approved. This is 2009-- was that they had concerning $191 million verified-- that is my quote. USCIS does not give the kind of information that we might make use of on this.


So for each $100 of boosted international financial investment that year, the EB program contributed one dime. Under a much extra shaky statistical base, the first applications of would-be immigrant capitalists, USCIS is informing journalists that the degree of financial investment in the just-concluded year was regarding $1.2 billion. Allow us approve that.

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Thanks for listening to me. I eagerly anticipate your remarks and concerns. [The prepared declaration of David North shows up as a submission for the document.] Chairman Leahy. Thank you. Our next witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's immigration technique team.




Divine functioned as Chief Advise of the USA Citizenship and Immigration Services from July 2004 till November 2006, the year in which he was Performing Director, and afterwards Performing Deputy Supervisor. He has actually functioned extensively with the EB-5 program in private practice. He was elected, as I comprehend, vice president of the Organization to Invest in United States, the national industry organization of local facilities.


Divine, we are happy to have you below. Please proceed, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At most, if all 10,000 slots were used, it would certainly be 1 percent of the migration annually to the USA. It is not near that yet, yet it is growing and getting toward that. Specifically as USCIS, the company that supervises the program, has actually been making the policies more clear and the procedures a lot more reasonable and clear for the people that are arranging financial investments and for the financiers who are spending, even more people have actually agreed and able to place effort and money into the process to locate excellent jobs and create them, and after that a lot more financiers have actually been ready to spend their money and take the threat and make use of the money to produce the work that is the factor of the program.

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These tasks do not wait about for life, and USCIS recognizes that and are trying to speed the program, speed the process - website EB5 Regional Center Program. That does not indicate that they are relaxing their analysis, and, in fact, they prepare to reject applications that are not certifying. And they do so, as was mentioned


The regional center part of the program is not. It is component of an appropriations expense that was enacted 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 currently and not nearer to the day of expiration in September.


The procedure takes a good while to work up a task and then to obtain the capitalists authorized. And they do not want their money moving via until they have been accepted. And the specter of the expiration of this Regional Facility Program in September is already inhibiting the advancement of projects.

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I want to clarify 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 feature of the normal EB-5 law that becomes part of the code. It just is a fact that most of the local centers that are pooling financial investments have actually set those instead of high joblessness or in backwoods where half- million-dollar financial investments are permitted, and that makes good sense.