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The program is put in an extremely odd and non-helpful administrative area for the excitement of international financial investment in the United States. Second, its range is all incorrect. We are handing out excessive for also small of an investment. Additionally, elevating endeavor funding fifty percent a million dollars a tranche is, to claim the least, inefficient.


The regional centers, with their half-million plans, essentially damaged the more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they carry out in Australia, ought to be about creating organization entities, not passive financial investments. It should have to do with creating actual jobs, not elaborate computations regarding the indirect creation of jobs, which is currently part of the regulations.


Possibly that is just one of the reasons why it has stopped working every year to get to the legal objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is as well loaded with middlemen, both public and exclusive. The program has greater than its share of detractions, which I will enter into later on if any person is interested.


This is a company that loves to say yes to applicants, yet as the table in my testimony reveals, USCIS police officers have far more trouble with EB-5 applications than others. I believe that is something that no one has actually discussed a lot. EB5 Regional Center Program. There are high rates of internal denials in this program and for excellent factor

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Seventh, in this program visas most likely to people who might not get them differently and to individuals whose planned financial investment is really less, according to the Federal Reserve, than the average mean net well worth of all American households in 2007. Let me broaden on among my observations.


My quote based on the financiers' permit applications filed 2 years after the first financial investment-- these are the solid ones that stay and are authorized. This is 2009-- was that they had regarding $191 million confirmed-- that is my estimate. USCIS does not provide the kind of data that we can utilize on this.


For every $100 of enhanced international investment that year, the EB program added one dime. Under a much extra unsteady statistical base, the first applications of prospective immigrant capitalists, USCIS is informing journalists that the degree of investment in the just-concluded year was concerning $1.2 billion. Let us approve that.

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Thank you for paying attention to me. I eagerly anticipate your remarks and questions. [The prepared statement of David North looks like 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 firm's migration technique team.




Divine functioned as Chief Advice of the USA Citizenship and Immigration Services from July 2004 up until November 2006, the year in which he was Acting Supervisor, and afterwards Acting Deputy Director. He has actually worked extensively with the EB-5 program in exclusive practice. He was chosen, as I comprehend, vice president of the Organization to Invest in U.S.A., the national sector association of local.


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


At many, if all 10,000 ports were used, it would certainly be 1 percent of the immigration annually to the USA. It is not near that yet, however it is expanding and getting toward that. Particularly as USCIS, the firm that looks after the program, has actually been making the regulations more clear and the processes extra sensible and clear for individuals that are organizing investments and for the capitalists who are investing, even more people have actually agreed and able to place initiative and money into the process to discover excellent tasks and develop them, and after that more capitalists have agreed to invest their money and take the danger and make use of the cash to create the tasks that is the point of the program.

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These jobs do not wait about forever, and USCIS recognizes that and are trying to speed more info the program, speed the process - EB5 Regional Center Program. That does not imply that they are relaxing their scrutiny, and, in reality, they are all set to refute applications that are not certifying. And they do so, as was pointed out


The local center component of the program is not. It belongs to an appropriations expense that was passed in 1992, and ever since that program has been expanded 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 expiration in September.


The procedure takes a good while to function up a project and after that to obtain the investors authorized. And they do not desire their cash moving via up until they have actually been authorized. And the specter of the expiration of this Regional Center Program in September is already inhibiting the advancement of projects.

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I want to clear up that the Regional Facility Program is not the exact same as the half-million-dollar point. The idea of half a million or a million is a function of the regular EB-5 law that is component of the code. It simply is a fact that a lot of the local facilities that are pooling investments have set those in places of high joblessness or in backwoods where half- million-dollar financial investments are permitted, which makes feeling.