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The program is placed in a very odd and non-helpful bureaucratic place for the excitement of global financial investment in the United States. Second, its scale is all wrong. We are offering away excessive for as well tiny of a financial investment. Additionally, elevating endeavor capital fifty percent a million dollars a tranche is, to claim the least, ineffective.


The local facilities, 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 all, as they do in Australia, ought to have to do with developing business entities, not easy financial investments. It must have to do with developing actual tasks, not elaborate calculations about the indirect production of work, which is now part of the regulation.


Maybe that is among the reasons why it has stopped working every year to get to the legislative objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is too full of intermediaries, both public and personal. The program has even more than its share of scandals, which I will obtain right into later if anyone is interested.


This is an agency that loves to state yes to applicants, but as the table in my statement reveals, USCIS police officers have a lot more difficulty with EB-5 applications than others. I think that is something that nobody has actually spoken about a lot. EB5 Regional Center Program. There are high prices of inner rejections in this program and forever reason

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Seventh, in this program visas most likely to people that could not obtain them any kind of other way and to people whose scheduled financial investment is really less, according to the Federal Reserve, than the ordinary mean internet worth of all American family members in 2007. Let me increase on one of my observations.


My estimate based upon the financiers' permit applications filed 2 years after the initial financial investment-- these are the solid ones that continue to be and are authorized. This is 2009-- was that they had about $191 million validated-- that is my estimate. USCIS does not provide the type of data that we might use on this.


So for every single $100 of boosted international financial investment that year, the EB program contributed one penny. Under a a lot more shaky statistical base, the initial applications of potential immigrant financiers, USCIS is telling see reporters that the level of financial investment in the just-concluded year was about $1.2 billion. Let us accept that.

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Thank you for paying attention to me. I look onward to your remarks and questions. [The prepared statement of David North shows up as a submission for the record.] 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 company's migration practice group.




Divine served as Principal Advise of the USA Citizenship and Immigration Solutions from July 2004 till November 2006, the year in which he was Performing Supervisor, and after that Acting Deputy Director. He has actually worked thoroughly with the EB-5 program in personal practice. He was elected, as I understand, vice head of state of the Organization to Spend in USA, the national industry association of local.


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


At the majority of, if all 10,000 slots were utilized, it would be 1 percent of the migration each year to the United States. It is not near that yet, yet it is growing and getting toward that. Particularly as USCIS, the agency that looks after the program, has actually been making the guidelines clearer and the processes extra rational and clear for the individuals who are organizing investments and for the investors that are investing, more individuals have actually agreed and able to place effort and money into the process to locate good projects and establish them, and then a lot more capitalists have actually been eager to invest their cash and take the threat and make use of the money to produce the tasks that is the point of the program.

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These projects do not wait around permanently, and USCIS recognizes that and are trying to speed the program, speed the process - EB5 Regional Center Program. That does not imply that they are relaxing their examination, and, in truth, they are prepared to reject applications that are not qualifying. And they do so, as was discussed


The regional center component of the program is not. It belongs to an appropriations bill that was passed in 1992, and considering that then that program read more has been extended 5 times for 19 years. It is time for it to be long-term, and it needs to be done now and not nearer to the day of expiration in September.


The process takes an excellent while to function up a job and after that to obtain the capitalists authorized. And they do not want their cash streaming through up until they have actually been accepted. And the specter of the expiry of this Regional Center Program in September is currently inhibiting the advancement of projects.

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I want to make clear that the Regional Center Program is not the very same as the half-million-dollar thing. The concept of half a million or a million is a function of the normal EB-5 legislation that belongs to the code. It simply is a truth that the majority of the regional centers that are merging investments have set those in areas of high joblessness or in backwoods where half- million-dollar financial investments are allowed, and that makes feeling.