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First, the program is put in a really odd and non-helpful bureaucratic area for the excitement of global investment in the United States. Second, its range is all wrong. We are distributing also much for too small of a financial investment. Even more, elevating financial backing fifty percent a million bucks a tranche is, to claim the least, inefficient.


The local facilities, with their half-million systems, essentially undercut the much more practical million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, need to have to do with developing service entities, not easy investments. It must have to do with producing genuine jobs, not clarify calculations concerning the indirect production of jobs, which is now component of the regulation.


Possibly that is among the factors why it has stopped working year after year to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is as well loaded with middlemen, both public and private. The program has more than its share of rumors, which I will certainly enter later if any person is interested.


This is a firm that loves to claim yes to applicants, but 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 actually discussed much. EB5 Regional Center Program. There are high prices of internal denials in this program and permanently factor

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Seventh, in this program visas go to people that can not obtain them otherwise and to individuals whose organized investment is actually much less, according to the Federal Book, than the typical mean internet worth of all American family members in 2007. Let me expand on one of my observations.


My quote based on the financiers' eco-friendly card applications submitted 2 years after the initial financial investment-- these are the solid ones that stay and are accepted. This is 2009-- was that they had concerning $191 million confirmed-- that is my quote. USCIS does not supply the type of information that we might use on this.


So for every $100 of raised international financial investment that year, the EB program added one dime. Under a much a lot more wobbly analytical base, the initial applications of prospective immigrant capitalists, USCIS is telling reporters that the level of financial investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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Thank you for listening to me. I anticipate your comments and questions. [The ready declaration of David North appears as an entry for the document.] Chairman Leahy. Thank you. 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 immigration technique group.




Divine offered as Chief Counsel of the USA Citizenship and Migration Providers from July 2004 till November 2006, the year in which he was Acting Supervisor, and after that Acting Replacement Director. He has functioned extensively with the EB-5 program in exclusive practice. He was elected, as I understand, vice president of the Organization to Spend in U.S.A., the EB5 Regional Center Program nationwide industry association of local.


Divine, we are happy to have you below. Please go in advance, sir. 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. Thank you for having me.


At the majority of, if all 10,000 slots were made use of, it would certainly be 1 percent of the immigration every year to the USA. It is not near that yet, but it is growing and getting toward that. Especially as USCIS, the agency that supervises the program, has been making the policies clearer and the procedures more reasonable and clear for the people who are organizing investments and for the capitalists who are spending, more people have agreed and able to put effort and money into the procedure to locate good projects and create them, and afterwards more investors have been eager to invest their money and take the danger and make use of the cash to produce the tasks that is the factor of the program.

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These projects do not wait about permanently, and USCIS recognizes that and are attempting to speed the program, speed up the procedure - EB5 Regional Center Program. That does not suggest that they are unwinding their scrutiny, and, actually, they prepare to deny applications that are not qualifying. And they do so, as was pointed out


The regional center part of the program is not. It becomes part of an appropriations expense that was enacted in 1992, and ever since that program has actually been prolonged five times for 19 years. It is time for it to be irreversible, and it requires to be done currently and not nearer to the date of expiration in September.


The process takes a great while to work up a project and after that to get the investors authorized. And they do not want their cash flowing with until they have been authorized. And the specter of the expiry of this Regional Facility Program in September is already discouraging the development of tasks.

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I would certainly such as to make clear that the Regional Facility Program is not the same as the half-million-dollar thing. The idea of half a million or a million is a function of the regular EB-5 law that becomes part of the code. It simply is a fact that the majority of the local facilities that are pooling investments have actually set those in places of high unemployment or in rural locations where half- million-dollar financial investments are permitted, which makes feeling.