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The program is put in an extremely weird and non-helpful bureaucratic area for the stimulation of international investment in the United States. Second, its range is all incorrect. We are distributing excessive for too tiny of a financial investment. Additionally, raising equity capital fifty percent a million bucks a tranche is, to say the least, inefficient.


The local centers, with their half-million schemes, basically undercut the more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they do in Australia, should be regarding developing company entities, not passive financial investments. It must be about creating real jobs, not clarify calculations regarding the indirect creation of work, which is currently component of the legislation.


Perhaps that is among the factors why it has failed every year to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is as well loaded with intermediaries, both public and private. The program has greater than its share of scandals, which I will get involved in later on if anyone is interested.


This is a firm that enjoys to state yes to applicants, however as the table in my testament shows, USCIS police officers have a lot more problem with EB-5 applications than others. I assume that is something that no one has really talked about much. EB5 Regional Center Program. There are high rates of inner denials in this program and for excellent factor

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Seventh, in this program visas most likely to people that could not obtain them any various other way and to individuals whose scheduled investment is actually less, according to the Federal Get, than the typical mean total assets of all American households in 2007. Allow me expand on among my observations.


My estimate based on the capitalists' copyright applications filed 2 years after the first investment-- these are the strong ones that remain and are authorized. This is 2009-- was that they had concerning $191 million validated-- that is my price quote. USCIS does not give the sort of information that we could use on this.


For every $100 of enhanced international financial investment that year, the EB program added one cent. Under a much extra wobbly analytical base, the preliminary applications of would-be immigrant capitalists, USCIS is informing journalists that the level of investment in the just-concluded year was concerning $1.2 billion. Let us approve that.

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Thank you for listening to me. I eagerly anticipate your comments and questions. [The ready declaration of David North appears as a submission 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 offered as Principal Counsel of the United States Citizenship and Migration Services from July 2004 until November 2006, the year in which he was Performing Supervisor, and afterwards Acting Replacement Director. He has actually worked thoroughly with the EB-5 program in private practice. He was chosen, as I comprehend, vice president of the Organization to Spend in USA, the national market association of local centers.


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


At the majority of, if all 10,000 ports were used, it would be 1 percent of the migration annually to the United States. It is not near that yet, however it is growing and obtaining toward that. Particularly as USCIS, the agency that supervises the program, has been making the guidelines clearer and the procedures much more logical and clear for individuals who are arranging investments and for the capitalists that are spending, even more people have been prepared and able to place initiative and money into the process to find good jobs and create them, and after that much more capitalists have actually agreed to invest their money and take the risk and make use of the money to create the work that is the point of the program.

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These tasks do not wait about forever, and USCIS recognizes that and are trying to speed up the program, speed up the process - EB5 Regional Center Program. That does not suggest that they are relaxing their analysis, and, as a matter of fact, they are ready to refute applications that are not certifying. And they do so, as was mentioned


The regional facility part of the program is not. It belongs to an appropriations costs that was established in 1992, and because then that program has been prolonged five times for 19 years. It more info is time for it to be long-term, and it needs to be done now and not nearer to the date of expiration in September.


The procedure takes an excellent while to function up a job and afterwards to get the financiers approved. And they do not want their money flowing with till they have been accepted. And the specter of the expiration of this Regional Center Program in September is already preventing the growth of projects.

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I would certainly like to clear up 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 routine EB-5 law that is part of the code. It just is a truth that the majority of the local facilities that are pooling financial investments have actually established those instead of high unemployment or in rural areas where fifty percent- million-dollar investments are permitted, and that makes sense.