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The program is placed in an extremely odd and non-helpful administrative area for the stimulation of global investment in the United States. Second, its scale is all incorrect. We are handing out excessive for too tiny of an investment. Additionally, elevating endeavor capital fifty percent a million bucks a tranche is, to say the least, inefficient.


The regional facilities, with their half-million plans, basically undercut the extra practical million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they do in Australia, need to have to do with creating service entities, not passive financial investments. It should be concerning creating genuine jobs, not clarify estimations regarding the indirect creation of tasks, which is currently part of the regulation.


Possibly that is one of the reasons that it has fallen short every year to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is as well loaded with intermediaries, both public and personal. The program has even more than its share of scandals, which I will certainly get involved in later if anybody is interested.


This is an agency that enjoys to claim yes to applicants, but as the table in my statement reveals, USCIS officers have a lot more problem with EB-5 applications than others. I think that is something that nobody has actually actually spoken about a lot. EB5 Regional Center Program. There are high prices of internal denials in this program and permanently factor

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Seventh, in this program visas go to people who can not obtain them differently and to people whose planned investment is in fact much less, according to the Federal Book, than the typical mean net worth of all American families in 2007. Allow me increase on one of my observations.


My estimate based upon the financiers' eco-friendly card applications submitted 2 years after the initial financial investment-- these are the solid ones that remain and are accepted. This is 2009-- was that they had regarding $191 million confirmed-- that is my estimate. USCIS does not provide the sort of information that we might use on this.


For every $100 of enhanced foreign financial investment that year, the EB program added one cent. Under a a lot more wobbly analytical base, the first applications of potential immigrant financiers, USCIS is telling reporters that the level of investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thank you for paying attention to me. I eagerly anticipate your remarks and questions. [The ready declaration of David North shows up as a submission for the record.] 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 migration practice group.




Divine acted as Principal Advise of the USA Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Acting Supervisor, and after that Acting Deputy Supervisor. He has actually worked thoroughly with the EB-5 program secretive practice. He was chosen, as I comprehend, vice head of state of the Association to Spend in USA, the national industry organization of local.


Divine, we are thrilled to have you here. Please go in advance, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, PURCHASE THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At most, if all 10,000 ports were made use of, it would be 1 percent of the immigration each year to the United States. It is not near that yet, however it is expanding and getting towards that. Specifically as USCIS, the agency that looks after the program, has been making the policies more clear and the processes a lot more sensible and clear for the people that are arranging investments and for the investors who are spending, even more people have actually agreed and able to put initiative and cash right into the process to find great jobs and create them, and then much more capitalists have actually wanted to spend their money and take the risk and use the cash to create the tasks that is the factor of the program.

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These tasks do not wait about for life, and USCIS recognizes that and are attempting to speed the program, speed the procedure - EB5 Regional Center Program. That does not suggest that they are relaxing their scrutiny, and, actually, they prepare to deny applications that are not qualifying. And they do so, as was mentioned


The local center part of the program is not. It belongs to an appropriations bill that was passed in 1992, and considering that then that program has been expanded five times for 19 years. It is time for it to be long-term, and it needs to be done currently and not nearer to the day of expiration in September.


The procedure takes a good while to function up a job and afterwards to obtain the financiers accepted. And they do not desire their cash flowing with till they have actually been approved. And the specter of the expiration of this Regional Facility Program in September is currently dissuading the growth of tasks.

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I would like to clarify that the Regional Center Program is not the same as the half-million-dollar thing. The idea of half a million or a million is a function of the more info regular EB-5 law that becomes part of the code. It just is a reality that most of the regional facilities that are merging financial investments have actually established those in locations of high unemployment or in backwoods where half- million-dollar financial investments are allowed, and that makes good sense.