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The program is positioned in a really weird and non-helpful bureaucratic place for the excitement of global financial investment in the United States. Second, its range is all wrong. We are handing out way too much for as well little of a financial investment. Better, elevating financial backing fifty percent a million bucks a tranche is, to say the least, inefficient.


The local centers, with their half-million systems, basically damaged the a lot more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they carry out in Australia, ought to have to do with creating organization entities, not passive financial investments. It should have to do with creating genuine jobs, not specify computations regarding the indirect creation of jobs, which is now component of the regulations.


Possibly that is one of the reasons it has stopped working year after year to get to the legislative goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is as well full of intermediaries, both public and personal. The program has even more than its share of scandals, which I will certainly enter into later on if anybody is interested.


This is a company that enjoys to say yes to applicants, yet as the table in my testimony shows, USCIS policemans have a lot more trouble with EB-5 applications than others. I assume that is something that nobody has actually talked about a lot. EB5 Regional Center Program. There are high prices of interior rejections in this program and forever factor

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Seventh, in this program visas most likely to people who might not obtain them differently and to people whose scheduled financial investment is actually much less, according to the Federal Reserve, than the average mean net well worth of all American households in 2007. Let me expand on among my monitorings.


My quote based upon the capitalists' permit applications submitted 2 years after the very first investment-- these are the solid ones that continue to be and are approved. This is 2009-- was that they had about $191 million confirmed-- that is my estimate. USCIS does not provide the sort of information that we might utilize on this.


So for every single $100 of increased international investment that year, the EB program added one cent. Under a much more unsteady statistical base, the first applications of potential immigrant investors, USCIS is telling reporters that the level of investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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Thanks for paying attention to me. I look forward to your comments and concerns. [The prepared statement of David North appears as a submission for the record.] Chairman Leahy. Thank you. Our next witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's immigration practice group.




Divine functioned 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 Acting Replacement Supervisor. He has worked thoroughly with the EB-5 program secretive practice. He was chosen, as I recognize, vice head of state of the Organization to Spend in USA, the national sector organization of regional.


DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At most, if all 10,000 slots were utilized, it would certainly be 1 percent of the immigration every year to the USA. It is not near that yet, but it is expanding and getting towards that. Especially as USCIS, the agency that looks after the program, has actually been making the rules clearer and the procedures extra rational and clear for individuals that are organizing financial investments and for the capitalists who are investing, even additional resources more individuals have actually been eager and able to put effort and cash into the process to locate good projects and establish them, and after that more financiers have actually agreed to invest their money and take the threat and utilize the cash to develop the jobs that is the point of the program.

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These projects do not wait around for life, and USCIS understands that and are trying to speed up the program, speed the process - EB5 Regional Center Program. That does not indicate that they are unwinding their examination, and, as a matter of fact, they prepare to reject applications that are not qualifying. And they do so, as was pointed out


The local facility part of the program is not. It is component of an appropriations bill that was enacted in 1992, and considering that then that program has been extended five times for 19 years. It is time for it to be long-term, and it requires to be done currently and not nearer to the day of expiry in September.


The process takes a great while to function up a task and then to obtain the investors accepted. And they you can try this out do not desire their money streaming with up until they have been accepted. And the specter of the expiration of this Regional Facility Program in September is already preventing the growth of jobs.

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I want to clarify that the Regional Facility Program is not the exact same as the half-million-dollar point. The idea 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 look here fact that many of the local centers that are pooling financial investments have actually established those instead of high joblessness or in country locations where half- million-dollar investments are enabled, which makes good sense.