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The program is positioned in a really strange and non-helpful administrative place for the stimulation of international financial investment in the United States. Second, its range is all wrong. We are providing away excessive for also small of an investment. Further, increasing financial backing half a million bucks a tranche is, to state the least, ineffective.


The regional facilities, with their half-million systems, essentially undercut the extra reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, should be about developing business entities, not passive financial investments. It ought to be regarding creating real jobs, not elaborate estimations about the indirect production of tasks, which is currently component of the legislation.


Perhaps that is just one of the reasons it has actually stopped working every year to get to the legislative goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is also loaded with intermediaries, both public and private. The program has greater than its share of rumors, which I will certainly get involved in later if any person is interested.


This is an agency that enjoys to state yes to applicants, yet as the table in my statement shows, USCIS policemans have far more problem with EB-5 applications than others. I assume that is something that nobody has truly spoken around a lot. EB5 Regional Center Program. There are high rates of inner denials in this program and permanently factor

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Seventh, in this program visas most likely to individuals who can not get them otherwise and to people whose organized investment is actually much less, according to the Federal Get, than the typical mean internet worth of all American families in 2007. Let me increase on one of my observations.


My estimate based upon the investors' copyright applications submitted 2 years after the first financial investment-- these are the strong ones that stay and are approved. This is 2009-- was that they had about $191 million verified-- that is my quote. USCIS does not give the type of data that we might use on this.


So for each $100 of raised international investment that year, the EB program contributed one dime. Under a a lot more wobbly 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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Thank you for listening to me. I expect your remarks and concerns. [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 company's migration practice team.




Divine functioned as Principal Guidance of the USA Citizenship and Immigration Solutions from July 2004 till November 2006, the year in which he was Acting Director, and after that Performing Replacement Supervisor. He has worked thoroughly with the EB-5 program in private practice. He was elected, as I understand, vice president of the Organization to Invest in United States, the national market organization of local centers.


Divine, look at this site we are delighted to have you below. Please go on, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At many, if all 10,000 slots were made use of, it would be 1 percent of the migration annually reference to the United States. It is not near that yet, but it is expanding and getting towards that. Particularly as USCIS, the company that manages the program, has been making the regulations clearer and the processes extra reasonable and clear for individuals that are arranging investments and for the financiers who are spending, more people have actually wanted and able to place effort and cash right into the procedure to find good projects and establish them, and after that extra capitalists have been eager to spend their cash and take the threat and use the cash to produce the work that is the factor of the program.

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These jobs do not wait around for life, and USCIS recognizes that and are trying to speed the program, speed the process - EB5 Regional Center Program. That does not indicate that they are relaxing their scrutiny, and, actually, they prepare to deny applications that are not qualifying. And they do so, as was mentioned


The regional center component of the program is not. It becomes part of an appropriations costs that was established in 1992, and since then that program has actually been prolonged five times for 19 years. It is time for it to be long-term, and it needs to be done currently and not nearer to the date of expiration in September.


The process takes a great while to function up a job and afterwards to get the capitalists approved. And they do not want their cash flowing through until they have been accepted. And the specter of the expiry of this Regional Facility Program in September is currently inhibiting the advancement of tasks.

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I want to clear up 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 function of the routine EB-5 legislation that becomes part of the code. It just is a reality that the majority of the next local facilities that are pooling investments have set those in areas of high joblessness or in country areas where half- million-dollar investments are allowed, and that makes feeling.