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The program is put in a really strange and non-helpful administrative location for the stimulation of global investment in the United States. Second, its range is all wrong. We are distributing excessive for as well small of an investment. Better, increasing equity capital fifty percent a million dollars a tranche is, to state the least, ineffective.


The local facilities, with their half-million plans, essentially undercut the much more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they carry out in Australia, must be concerning producing company entities, not passive investments. It should have to do with developing actual work, not specify calculations concerning the indirect creation of work, which is currently part of the legislation.


Perhaps that is one of the reasons it has failed every year to reach the legislative objective of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is as well full of middlemen, both public and personal. The program has greater than its share of detractions, which I will enter later on if anyone is interested.


This is a company that likes to state yes to applicants, however as the table in my testimony reveals, USCIS policemans have a lot more problem with EB-5 applications than others. I believe that is something that nobody has actually truly chatted around much. EB5 Regional Center Program. There are high rates of internal denials in this program and completely reason

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Seventh, in this program visas go to individuals who can not obtain them any kind of various other means and to individuals whose scheduled financial investment is really less, according to the Federal Get, than the typical mean web worth of all American family members in 2007. Let me broaden on among my monitorings.


My quote based upon the financiers' permit applications filed 2 years after the initial financial investment-- these are the strong ones that stay and are authorized. This is 2009-- was that they had concerning $191 million validated-- that is my quote. USCIS does not give the kind of information that we can use on this.


So for every single $100 of increased foreign investment that year, the EB program contributed one cent. Under a much a lot more wobbly analytical base, the preliminary applications of potential immigrant investors, USCIS is informing journalists that the level of investment in the just-concluded year was regarding $1.2 billion. Allow us approve that.

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Thanks for paying attention to me. I anticipate your remarks and concerns. [The ready statement of David North looks like 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 company's immigration practice team.




Divine worked as Chief Advice of the USA Citizenship and Migration Providers from July 2004 up until November 2006, the year in which he was Acting Director, and then Performing Deputy Supervisor. He has actually functioned thoroughly with the EB-5 program secretive practice. He was chosen, as I recognize, vice head of state of the Association to Buy USA, the nationwide sector organization of local facilities.


DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE United States (IIUSA) Mr. Divine. click here Thank you, Mr. Chairman, Legislator Grassley, and others.


At many, if all 10,000 slots were made use of, it would certainly be 1 percent of the immigration annually to the United States. It is not near that yet, but it is expanding and getting toward that. Specifically as USCIS, the firm that oversees the program, has actually been making the rules clearer and the procedures extra logical and clear for the people who are organizing financial investments and for the investors who are spending, even more individuals have agreed and able to put effort and money into the process to discover excellent tasks and establish them, and after that extra financiers have agreed to spend their money and take the threat and utilize the money to produce the jobs that is the factor of the program.

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These jobs do not linger forever, and USCIS comprehends that and are trying to speed the program, speed the process - EB5 Regional Center Program. That does not suggest that they are relaxing their scrutiny, and, actually, they are ready to reject applications that are not certifying. And they do so, as was pointed out


The local center component of the program is not. It is part of an appropriations expense that was passed in 1992, and ever since that program has been prolonged 5 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 day of expiry in September.


The procedure takes a good while to function up a project and afterwards to obtain the financiers authorized. And they do not desire their cash moving with until they have been authorized. And the specter of the expiration of this Regional Center Program in September is currently discouraging the growth of tasks.

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I would such as to make clear that the Regional Center Program is not the like the half-million-dollar thing. The idea 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 reality that many of the regional centers that are merging investments have established those instead of high unemployment or in backwoods where fifty percent- million-dollar investments are allowed, which makes sense.