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The program is put in a very weird and non-helpful bureaucratic place for the stimulation of international investment in the United States. Second, its range is all wrong. We are handing out also much for also little of an investment. Even more, increasing financial backing half a million bucks a tranche is, to state the least, inefficient.


The local facilities, with their half-million schemes, basically damaged the extra reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they do in Australia, ought to have to do with producing business entities, not passive financial investments. It must be concerning creating genuine tasks, not elaborate computations regarding the indirect creation of tasks, which is currently part of the regulations.


Maybe that is among the reasons why it has fallen short year after year to get to the legislative goal of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is too loaded with middlemen, both public and personal. The program has greater than its share of rumors, which I will certainly enter later on if anyone is interested.


This is a firm that likes to claim yes to candidates, yet as the table in my testament reveals, USCIS policemans have a lot more problem with EB-5 applications than others. I assume that is something that nobody has actually spoken about a lot. EB5 Regional Center Program. There are high rates of internal denials in this program and forever reason

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Seventh, in this program visas go to people that might not obtain them differently and to individuals whose planned investment is in fact much less, according to the Federal Get, than the typical mean total assets of all American families in 2007. Let me expand on one of my observations.


My price quote based upon the financiers' environment-friendly card applications submitted 2 years after the very first financial investment-- these are the strong ones that remain and are approved. This is 2009-- was that they had regarding $191 million verified-- that is my estimate. USCIS does not provide the kind of information that we can use on this.


For every $100 of increased international financial investment that year, the EB program added one penny. Under a far more shaky analytical base, the initial applications of would-be immigrant investors, USCIS is informing reporters that the degree of financial investment in the just-concluded year had to do with $1.2 billion. Let us approve that.

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Thanks for paying attention to me. I anticipate your remarks and concerns. [The prepared declaration of David North shows up as an entry for the document.] Chairman Leahy. Thanks. Our next witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's immigration method group.




Divine functioned as Principal Counsel of the United States Citizenship and Migration Providers from July 2004 up until November 2006, the year in which he was Performing Supervisor, and after that Performing Replacement Supervisor. He has actually functioned extensively with the EB-5 program in personal method. He was elected, as I understand, vice head of state of the Organization to Spend in USA, the nationwide sector association of local.


Divine, we are pleased to have you right here. Please proceed, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE USA (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At a lot of, if all 10,000 ports were utilized, it would certainly be 1 percent of the migration every year to the United States. It is not near that yet, but it is growing and obtaining toward that. Especially as USCIS, the firm that supervises the program, has actually been making the guidelines clearer and the procedures much more rational and clear for the individuals who are arranging investments and for the investors who are investing, more individuals have agreed and able to put initiative and cash into the procedure to discover excellent tasks and develop them, and afterwards much more financiers have agreed to spend their cash and take the risk and utilize the money to produce the work that is the point of the program.

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These jobs do not linger for life, and USCIS recognizes that and are trying to speed the program, speed up the process - EB5 Regional Center Program. That does not indicate that they are unwinding their analysis, and, actually, they are all set to deny applications that are not certifying. And they do so, as was discussed


The local center part of the program is not. It belongs to an appropriations expense that was enacted in 1992, and considering that then that program has been prolonged 5 times for 19 years. It is time for it to be permanent, and it needs to be done now and not nearer to the day of expiration in September.


The process takes a great while to develop a project and then to obtain the investors accepted. And they do not desire their money flowing through till they have actually been authorized. And the specter of the expiry of this Regional Facility Program in September is currently preventing the growth of projects.

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I would love 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 get more info million is a feature of the normal EB-5 law that belongs to the code. It just is a reality that a lot of the regional centers that are pooling financial investments have established those in places of high unemployment or in backwoods where half- million-dollar financial investments are allowed, which makes feeling.