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Initially, the program is placed in a really odd and non-helpful bureaucratic place for the excitement of global investment in the United States. Second, its scale is all wrong. We are distributing excessive for as well little of an investment. Further, increasing equity capital fifty percent a million dollars a tranche is, to say the least, inefficient.


The local centers, with their half-million schemes, basically undercut the a lot more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they perform in Australia, ought to be about creating service entities, not passive investments. It needs to have to do with developing genuine tasks, not specify calculations concerning the indirect creation of tasks, which is now part of the regulation.


Perhaps that is one of the reasons it has actually fallen short every year to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently clumsy, 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 on if anybody is interested.


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

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Seventh, in this program visas most likely to people that can not obtain them otherwise and to people whose planned investment is really less, according to the Federal Reserve, than the average mean total assets of all American families in 2007. Let me expand on one of my observations.


My quote based upon the financiers' permit applications filed 2 years after the very first investment-- these are the solid ones that stay and are accepted. This is 2009-- was that they had concerning $191 million validated-- that is my quote. USCIS does not supply the type of data that we could make use of on this.


For every $100 of boosted international investment that year, the EB program contributed one dime. Under a a lot more wobbly analytical base, the preliminary applications of potential immigrant investors, USCIS is informing journalists 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 listening to me. I eagerly anticipate your remarks and inquiries. [The prepared statement of David North appears as an entry for the document.] Chairman Leahy. Thank you. 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 migration practice team.




Divine served as Chief Counsel of the USA Citizenship and Migration Solutions from July 2004 till November 2006, the year in which he was Performing Director, and afterwards Performing Deputy Director. He has worked extensively with the EB-5 program in exclusive practice. He was chosen, as I understand, vice head of state of the Association to Spend in U.S.A., the national market organization of local.


Divine, we are pleased to have you below. Please go ahead, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, 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, Legislator Grassley, and others. Thank you for having me.


At a lot of, if all 10,000 slots were made use of, it would be 1 percent of the migration every year to the United States. It is not near that yet, but it is expanding and obtaining towards that. Particularly as USCIS, the agency that manages the program, has been making the regulations clearer and the procedures much more sensible and clear for individuals that are organizing investments and for the investors who are spending, more individuals have been ready and able to put initiative and money into the process to find excellent projects and establish them, and afterwards extra financiers have been willing to invest their money and take the risk and utilize the cash to create the jobs that is the factor of the program.

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These tasks do not linger permanently, and USCIS recognizes that and are attempting to speed the program, speed the process - EB5 Regional Center Program. That does not indicate that they are relaxing their scrutiny, and, as a matter of fact, they are ready to reject applications that are not certifying. And they do so, as was stated


The regional center part of the program is not. It is part of an appropriations costs that was passed in 1992, and since then that program has actually been prolonged 5 times for 19 years. It is time for it to be long-term, and it requires to be done now and not nearer to the day of expiration in September.


The process takes a good while to develop a project and afterwards to get the investors accepted. And they do not desire their money streaming with until they have been accepted. And the specter of the expiration of this Regional Center Program in September is currently discouraging the advancement of tasks.

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I would certainly like to clear up that the Regional Facility Program is not the like the half-million-dollar point. The concept of half a million or a million is a function of the regular EB-5 legislation that becomes part of the code. here It simply is a reality that the majority of the regional centers that are pooling investments have actually established those instead of high joblessness or in backwoods where fifty percent- million-dollar investments are allowed, and that makes good sense.