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Initially, the program is placed in an extremely weird and non-helpful bureaucratic area for the excitement of international investment in the United States. Second, its scale is all wrong. We are providing away way too much for as well little of a financial investment. Further, raising venture resources fifty percent a million dollars a tranche is, to say the least, ineffective.


The regional facilities, with their half-million systems, basically undercut the more practical million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they carry out in Australia, should be about developing service entities, not passive investments. It needs to be regarding developing actual jobs, not specify estimations concerning the indirect development of tasks, which is now part of the regulation.


Possibly that is one of the reasons that it has fallen short year after year to get to the legislative objective of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is too full of intermediaries, both public and private. The program has even more than its share of rumors, which I will get into later on if anybody is interested.


This is a company that likes to state yes to applicants, yet as the table in my testament reveals, USCIS officers have far more problem with EB-5 applications than others. I believe that is something that nobody has actually actually discussed much. EB5 Regional Center Program. There are high prices 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 otherwise and to people whose planned investment is really less, according to the Federal Book, than the ordinary mean total assets of all American families in 2007. Allow me increase on among my observations.


My price quote based upon the financiers' copyright applications filed 2 years after the first investment-- these are the solid ones that stay and are approved. This is 2009-- was that they had concerning $191 million verified-- that is my price quote. USCIS does not supply the type of data that we can make use of on this.


So for every single $100 of boosted foreign investment that year, the EB program added one dime. Under a a lot more wobbly statistical base, the first applications of potential immigrant financiers, USCIS is informing journalists that the degree of investment in the just-concluded year had to do with $1.2 billion. Let us accept that.

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Thanks for paying attention to me. I anticipate your remarks and questions. [The prepared 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 method team.




Divine acted as Chief Guidance of the USA Citizenship and Migration Services from July 2004 up until November 2006, the year in which he was Performing Supervisor, and afterwards Performing Deputy Supervisor. He has actually functioned thoroughly with the EB-5 program secretive practice. He was elected, as I understand, vice head of state of the Organization to Spend in USA, the nationwide sector association of regional.


DECLARATION 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. Thank you, Mr. Chairman, Legislator Grassley, and others.


At the majority of, if all 10,000 slots were used, it would be 1 percent of the migration yearly to the USA. It is not near that yet, but it is growing and getting toward that. Specifically as USCIS, the agency that oversees the program, has been making the rules clearer and the procedures extra logical and clear for the individuals that are organizing investments and for the capitalists who are investing, more people have actually wanted and able to place effort and money right into the procedure to locate good tasks and develop them, and then more investors have actually wanted to invest their cash and take the threat and utilize the cash to produce the jobs that is the factor of the program.

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These projects do not wait around for life, and USCIS understands that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That does not mean that they are relaxing their analysis, and, in fact, they prepare to reject applications that are not qualifying. And they do so, as was pointed out


The regional center component of the program is not. It belongs to an appropriations expense that was established in 1992, and given that then that program has actually been extended 5 times for 19 years. It is time for it to be permanent, and it needs to be done currently and not nearer to the date of expiry in September.


The process takes an excellent while to work up a task and after that to obtain the investors authorized. And they more info do not desire their cash flowing through till they have been accepted. And the specter of the expiration of this Regional Center Program in September is already discouraging the growth of projects.

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I wish to make clear that the Regional Center Program is not the like the half-million-dollar point. The concept of half a million or a million is a function of the normal EB-5 regulation that is component of the code. It simply is a truth that the majority of the local centers that are pooling investments have set those in places of high joblessness or in backwoods where half- million-dollar financial investments are allowed, which makes good sense.