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The program is positioned in an extremely odd and non-helpful governmental location for the excitement of worldwide financial investment in the United States. Second, its scale is all incorrect. We are distributing way too much for also little of a financial investment. Better, elevating financial backing half a million bucks a tranche is, to claim the least, inefficient.


The local centers, with their half-million schemes, basically undercut the extra sensible million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, ought to have to do with producing service entities, not easy investments. It must have to do with developing real work, not specify computations about the indirect creation of jobs, which is now part of the regulation.


Probably that is just one of the reasons it has actually fallen short year after year to reach the legal goal of 10,000 investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is as well filled up with middlemen, both public and private. The program has greater than its share of detractions, which I will get involved in later on if anyone is interested.


This is a company that loves to say yes to applicants, however as the table in my testament shows, USCIS police officers have a lot more problem with EB-5 applications than others. I believe that is something that nobody has actually truly discussed much. EB5 Regional Center Program. There are high prices of interior denials in this program and for excellent reason

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Seventh, in this program visas go to individuals that might not obtain them any kind of various other method and to individuals whose planned financial investment is really much less, according to the Federal Reserve, than the typical mean net well worth of all American family members in 2007. Let me increase on one of my monitorings.


My quote based upon the financiers' permit applications filed 2 years after the initial investment-- these are the strong ones that continue to be and are authorized. This is 2009-- was that they had concerning $191 million confirmed-- that is my quote. USCIS does not give the kind of data that we might utilize on this.


So for every single $100 of boosted international investment that year, the EB program added one cent. Under a far more wobbly statistical base, the first applications of would-be immigrant capitalists, USCIS is informing 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 paying attention to me. I eagerly anticipate your remarks and questions. [The ready statement of David North shows up as an entry 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 company's immigration practice team.




Divine functioned as Chief Counsel of the United States Citizenship and Immigration Services from July 2004 till November 2006, the year in which he was Performing Director, and then Acting Deputy Supervisor. He has actually functioned thoroughly with the EB-5 program secretive practice. He was elected, as I recognize, vice president of the Organization to Spend in United States, the national market organization of local.


DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others.


At many, if all 10,000 slots were used, it would certainly be 1 percent of the migration every year to the USA. It is not near that yet, however it is expanding and obtaining toward that. Especially as USCIS, the agency that manages the program, has actually been making the policies more clear and the procedures more rational and clear for individuals who are organizing investments and for the investors who are spending, even more individuals have wanted and able to put effort and cash right into the procedure to find good projects and develop them, and then a lot more investors have actually agreed to spend their money and take the risk and make use of 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 understands that and are attempting to speed up the program, speed the procedure - EB5 Regional Center Program. That does not suggest that they are relaxing their examination, and, as a matter of fact, they prepare to reject applications that are not qualifying. And they do so, as was discussed


The regional facility component of the program is not. It becomes part of an appropriations costs that was established in 1992, and since then that program has been extended 5 times for 19 years. It is time for it to be irreversible, and it requires to be done now and not nearer to the date of expiration in September.


The process takes an excellent while to develop a project and after that to obtain the investors accepted. And they do not desire their cash streaming with up until they have been accepted. And the specter of the expiry of this Regional Facility Program in September is already inhibiting the development of tasks.

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I would love to clear up that the Regional Facility Program is not the like the half-million-dollar thing. The concept of half a million or a million is EB5 Regional Center Program a function of the normal EB-5 legislation that belongs to the code. It just is a reality that the majority of the local facilities that are pooling investments have established those in places of high unemployment or in backwoods where fifty percent- million-dollar investments are enabled, and that makes good sense.