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First, the program is placed in an extremely weird and non-helpful administrative place for the excitement of global investment in the United States. Second, its range is all wrong. We are distributing excessive for as well little of a financial investment. Even more, increasing equity capital half a million dollars a tranche is, to say the least, ineffective.


The local centers, with their half-million systems, basically undercut the a lot more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they perform in Australia, must have to do with creating company entities, not easy investments. It ought to have to do with developing actual tasks, not specify computations about the indirect production of work, which is now component of the regulations.


Possibly that is just one of the reasons why it has actually stopped working every year to get to the legislative goal of 10,000 investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is also loaded with middlemen, both public and private. The program has greater than its share of rumors, which I will obtain into later on if anybody is interested.


This is a company that loves to state yes to applicants, but as the table in my testimony shows, USCIS officers have much extra trouble with EB-5 applications than others. I believe that is something that nobody has truly spoken about much. EB5 Regional Center Program. There are high prices of internal rejections in this program and completely reason

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Seventh, in this program visas go to individuals who could not get them otherwise and to people whose scheduled investment is in fact less, according to the Federal Reserve, than the ordinary mean internet worth of all American family members in 2007. Let me broaden on one of my observations.


My price quote based on the investors' eco-friendly card applications submitted 2 years after the first investment-- these are the strong ones that continue to be and are authorized. This is 2009-- was that they had regarding $191 million verified-- that is my quote. USCIS does not offer the type of information that we might utilize on this.


For every $100 of boosted foreign investment that year, the EB program added one penny. Under a much more unsteady statistical base, the first applications of prospective immigrant capitalists, USCIS is telling journalists that the level of financial investment in the just-concluded year had to do look at this website with $1.2 billion. Allow us approve that.

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Thanks for paying attention to me. I expect your remarks and questions. [The prepared statement of David North shows up as a submission for the record.] Chairman Leahy. Thank you. Our following witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's immigration method group.




Divine acted as Principal Advice of the United States Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Performing Director, and after that Performing Replacement Director. He has actually worked thoroughly with the EB-5 program in private method. He was elected, as I recognize, vice head of state of the Organization to Spend in USA, the national sector organization of local.


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


At a lot of, if all 10,000 slots were utilized, it would certainly be 1 percent of the immigration annually to the USA. It is not near that yet, yet it is expanding advice and obtaining towards that. Especially as USCIS, the agency that manages the program, has been making the guidelines more clear and the processes extra logical and clear for individuals who are organizing financial investments and for the capitalists that are investing, even more people have actually wanted and able to put effort and money right into the process to locate great tasks and create them, and after that more financiers have actually agreed to invest their cash and take the threat and use the cash to develop the work that is the factor of the program.

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These jobs do not wait about forever, and USCIS recognizes that and are attempting to speed the program, speed the process - EB5 Regional Center Program. That does not imply that they are unwinding their scrutiny, and, actually, they prepare to deny applications that are not qualifying. And they do so, as was stated


The regional facility component of the program is not. It belongs to an appropriations costs that was passed in 1992, and since then that program has actually been expanded 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 date of expiry in September.


The procedure takes a good while to work up a task and after that to get the investors authorized. And they do not desire their money streaming via until they have actually been accepted. And the specter of the expiry of this Regional Facility Program in September is already dissuading the development of projects.

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I would certainly such as to learn the facts here now clarify that the Regional Facility Program is not the like the half-million-dollar thing. The concept of half a million or a million is a feature of the regular EB-5 regulation that is component of the code. It simply is a reality that a lot of the local facilities that are pooling investments have set those instead of high joblessness or in backwoods where fifty percent- million-dollar financial investments are enabled, which makes feeling.