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The program is placed in an extremely strange and non-helpful bureaucratic location for the stimulation of global investment in the United States. Second, its range is all wrong. We are distributing excessive for also small of an investment. Better, raising endeavor funding half a million dollars a tranche is, to state the least, inefficient.


The local centers, with their half-million systems, basically undercut the extra practical million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they do in Australia, need to be regarding producing service entities, not passive financial investments. It ought to have to do with creating actual work, not specify computations concerning the indirect development of work, which is now part of the regulations.


Perhaps that is among the factors why it has fallen short every year to get to the legal goal of 10,000 investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is as well loaded with intermediaries, both public and exclusive. The program has even more than its share of rumors, which I will certainly obtain into later on if anybody is interested.


This is an agency that loves to say yes to applicants, yet as the table in my statement shows, USCIS policemans have a lot more problem with EB-5 applications than others. I assume that is something that no one has actually really chatted around a lot. EB5 Regional Center Program. There are high rates of inner rejections in this program and forever reason

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Seventh, in this program visas go to people who can not obtain them differently and to people whose planned financial investment is really less, according to the Federal Reserve, than the average mean net well worth of all American households in 2007. Let me increase on among my observations.


My quote based upon the investors' copyright applications filed 2 years after the initial investment-- these are the solid ones that continue to be and are approved. This is 2009-- was that they had concerning $191 million verified-- that is my price quote. USCIS does not give the type of data that we could utilize on this.


For every $100 of boosted international investment that year, the EB program added one cent. Under a far more shaky analytical base, the preliminary applications of prospective immigrant financiers, USCIS is telling reporters 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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Thanks for paying attention to me. I look ahead to your comments and questions. [The ready declaration of David North looks like an entry for the document.] Chairman Leahy. Thanks. Our following 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 group.




Divine worked as Principal Advice of the USA Citizenship and Migration Services from July 2004 up until November 2006, the year in which he was Acting Supervisor, and after that Performing Deputy Director. He has actually functioned extensively with the EB-5 program in exclusive method. He was chosen, as I recognize, vice president of the Association to Spend in USA, the nationwide industry organization of local.


Divine, we are happy to have you below. Please proceed, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, PURCHASE THE U.S.A. (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator 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 yearly to the United States. It is not near that yet, yet it is expanding and getting towards that. Particularly as USCIS, the company that supervises the program, has been making the guidelines clearer and the procedures extra rational and clear for the individuals who are organizing investments and for the capitalists that are investing, more individuals have wanted and able to put initiative and money right into the procedure to locate excellent jobs and create them, and afterwards much more capitalists have been prepared to spend their money and take the danger and make use of the cash to develop the jobs that is the point of the program.

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These jobs do not linger forever, and USCIS comprehends that and are trying to speed the program, speed the procedure - EB5 Regional Center Program. That does not suggest that they are unwinding their scrutiny, and, actually, they prepare to refute 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 given that then that program has actually been expanded five times for 19 years. It is time for it to be permanent, and it requires to be done currently and not nearer to the day of expiry in September.


The process takes a great while to work up a task and afterwards to obtain the capitalists approved. And they do not want their cash moving via until they have been authorized. And the specter of the expiration of this Regional Facility Program in September is already dissuading the growth of projects.

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I would certainly like to clear up that check here the Regional Center Program is not the exact same as the half-million-dollar thing. The idea of half a million or a million is a feature of the routine EB-5 legislation that becomes part of the code. It just is a truth that most of the local centers that are pooling financial investments have actually set those in locations of high joblessness or in backwoods where fifty percent- million-dollar investments are enabled, which makes good sense.