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First, the program is put in a very weird and non-helpful governmental place for the stimulation of worldwide financial investment in the USA. Second, its scale is all wrong. We are offering away also much for as well small of a financial investment. Better, elevating endeavor resources fifty percent a million dollars a tranche is, to say the least, inefficient.


The regional facilities, with their half-million schemes, basically undercut the extra practical million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, should be regarding developing company entities, not passive financial investments. It ought to be concerning producing genuine work, not specify calculations concerning the indirect development of jobs, which is now part of the regulation.


Perhaps that is one of the reasons it has stopped working time after time to get to the legal objective of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is too loaded with intermediaries, both public and exclusive. The program has more than its share of detractions, which I will get right into later on if anybody is interested.


This is an agency that loves to say yes to applicants, however as the table in my statement reveals, USCIS policemans have far more trouble with EB-5 applications than others. I think that is something that no one has really spoken about much. EB5 Regional Center Program. There are high rates of internal denials in this program and completely factor

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Seventh, in this program visas go to individuals who might not get them any kind of other means and to people whose scheduled financial investment is actually much less, according to the Federal Reserve, than the average mean total assets of all American families in 2007. Allow me broaden on one of my monitorings.


My estimate based on the capitalists' permit applications submitted 2 years after the very first investment-- these are the solid ones that stay and are authorized. This is 2009-- was that they had concerning $191 million verified-- that is my price quote. USCIS does not offer the sort of data that we can use on this.


For every $100 of increased international financial investment that year, the EB program contributed one dime. Under a a lot more shaky 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 had to do with $1.2 billion. Allow us approve that.

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Thank you for listening to me. I anticipate your comments and inquiries. [The ready statement of David North appears as a submission for the document.] Chairman Leahy. Thanks. Our next witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. browse this site He is the head of the firm's migration technique group.




Divine offered as Chief Counsel of the USA Citizenship and Immigration Solutions from July 2004 till November 2006, the year in which he was Acting Supervisor, and afterwards Performing Deputy Supervisor. He has worked extensively with the EB-5 program in exclusive technique. He was chosen, as I understand, vice president of the Organization to Spend in U.S.A., the nationwide industry association of regional facilities.


Divine, we are informative post happy to have you here. Please go ahead, 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 U.S.A. (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At the majority of, if all 10,000 ports were utilized, it would certainly be 1 percent of the migration each year to the USA. It is not near that yet, yet it is growing and getting toward that. Particularly as USCIS, the company that oversees the program, has actually been making the regulations more clear and the processes a lot more sensible and clear for individuals that are arranging investments and for the investors who are investing, even more individuals have wanted and able to place initiative and money into the procedure to locate great projects and develop them, and afterwards a lot more financiers have wanted to invest their cash and take the danger and use the money to produce the jobs that is the factor of the program.

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These projects do not linger permanently, and USCIS understands that and are trying to speed up the program, speed up the process - EB5 Regional Center Program. That does not mean that they are relaxing their scrutiny, and, in truth, they are ready to reject applications that are not qualifying. And they do so, as was stated


The local facility component of the program is not. It belongs to an appropriations expense that was passed in 1992, and ever since 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 day of expiry in September.


The procedure takes a great while to develop a job and after that to get go to website the investors approved. And they do not desire their cash flowing through until they have been authorized. And the specter of the expiration of this Regional Facility Program in September is currently inhibiting the advancement of jobs.

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I would love to clear up that the Regional Facility Program is not the exact 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 becomes part of the code. It just is a fact that most of the local centers that are merging investments have set those instead of high unemployment or in country areas where half- million-dollar financial investments are allowed, which makes good sense.