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The program is placed in an extremely strange and non-helpful governmental location for the stimulation of international investment in the United States. Second, its range is all incorrect. We are giving away as well much for as well tiny of an investment. Further, elevating equity capital fifty percent a million bucks a tranche is, to claim the least, ineffective.


The local centers, with their half-million plans, essentially damaged the more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, need to have to do with producing business entities, not easy financial investments. It must have to do with developing actual jobs, not specify calculations about the indirect creation of jobs, which is currently component of the regulation.


Maybe that is one of the reasons that it has actually failed year after 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 as well loaded with intermediaries, both public and exclusive. The program has greater than its share of detractions, which I will certainly enter later if anybody is interested.


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

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Seventh, in this program visas go to individuals that can not obtain them differently and to individuals whose scheduled financial investment is in fact less, according to the Federal Reserve, than the typical mean internet well worth of all American families in 2007. Allow me broaden on one of my observations.


My price quote based on the financiers' copyright applications filed 2 years after the initial investment-- these are the strong ones that stay and are accepted. This is 2009-- was that they had regarding $191 million verified-- that is my quote. USCIS does not offer the kind of information that we can utilize on this.


So for every single $100 of increased international financial investment that year, the EB program added one penny. Under a far more wobbly statistical base, the first applications of prospective immigrant financiers, USCIS is telling reporters that the level of financial investment in the just-concluded year was concerning $1.2 billion. Let us approve that.

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Thanks for listening to me. I expect your comments and questions. [The ready declaration of David North appears as a submission for the document.] Chairman Leahy. Thanks. Our next witness is Robert Divine. Learn More Here He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's immigration practice group.




Divine worked as Principal Advise of the USA Citizenship and Migration Services from July 2004 up until November 2006, the year in which he was Acting Supervisor, and afterwards Performing Replacement Director. He has functioned thoroughly with the EB-5 program secretive technique. He was elected, as I recognize, vice president of the Organization to Invest in U.S.A., the nationwide industry organization of local.


Divine, we are thrilled to have you below. Please go in advance, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At a lot of, if all 10,000 ports were made use of, it would be 1 percent of the immigration yearly to the USA. It is not near that yet, but it is expanding and getting toward that. Specifically as USCIS, the firm that oversees the program, has been making the policies more clear and the procedures much more logical and clear for the people who are organizing financial investments and for the investors that are investing, even more individuals have actually agreed and able to put initiative and cash into the process to discover great projects and create them, and afterwards more investors have agreed to spend their cash and take the danger and make use of the cash to develop the tasks that is the factor of the program.

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These projects great post to read do not wait around permanently, and USCIS recognizes that and are trying to speed the program, speed up the procedure - EB5 Regional Center Program. That does not imply that they are unwinding their analysis, and, actually, 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 becomes part of an appropriations expense that was established in 1992, and given that then that program has been extended 5 times for 19 years. It is time for it to like it be irreversible, and it requires to be done now and not nearer to the date of expiration in September.


The procedure takes a great while to develop a task and afterwards to get the capitalists accepted. And they do not desire their money flowing via up until they have actually been approved. And the specter of the expiry of this Regional Facility Program in September is currently inhibiting the growth of tasks.

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I would love to make clear that the Regional Center Program is not the like the half-million-dollar thing. The concept of half a million or a million is a feature of the routine EB-5 regulation that belongs to the code. It simply is a fact that most of the local centers that are merging financial investments have set those in places of high joblessness or in country locations where fifty percent- million-dollar investments are enabled, and that makes good sense.