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Initially, the program is placed in a really odd and non-helpful governmental area for the stimulation of international financial investment in the United States. Second, its scale is all wrong. We are handing out also much for too small of a financial investment. Additionally, increasing venture funding half a million dollars a tranche is, to claim the least, ineffective.

The regional facilities, with their half-million plans, basically undercut the a lot more practical million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they perform in Australia, must be about creating business entities, not passive investments. It ought to have to do with creating actual tasks, not specify calculations about the indirect development of work, which is now component of the regulations.

Probably that is among the reasons why it has stopped working time after time to reach the legal objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is too loaded with middlemen, both public and private. The program has greater than its share of rumors, which I will certainly enter into later if anyone is interested.

This is an agency that likes to say yes to candidates, yet as the table in my testament reveals, USCIS police officers have far more difficulty with EB-5 applications than others. I believe that is something that nobody has really spoken about much. EB5 Regional Center Program. There are high prices of inner rejections in this program and permanently reason

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Seventh, in this program visas most likely to people that might not obtain them differently and to individuals whose planned financial investment is really much less, according to the Federal Reserve, than the ordinary mean total assets of all American families in 2007. Let me increase on one of my observations.

My estimate based upon the financiers' permit applications submitted 2 years after the first 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 price quote. USCIS does not offer the sort of information that we can use on this.

For every $100 of raised international financial investment that year, the EB program contributed one cent. Under a far more wobbly statistical base, the preliminary 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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Thank you for listening to me. I eagerly anticipate your comments and questions. [The ready statement of David North looks like a submission for the record.] Chairman Leahy. Thank you. 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 technique team.


Divine functioned as Chief Counsel of the United States Citizenship and Migration Providers from July 2004 until November 2006, the year in which he was Performing Director, and then Performing Replacement Director. He has worked thoroughly with the EB-5 program in personal method. He was chosen, as I comprehend, vice head of state of the Association to Buy U.S.A., the national sector organization of regional facilities.

STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE United States (IIUSA) visite site Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.

At most, if all 10,000 slots were utilized, it would be 1 percent of the migration each year to the USA. It is not near that yet, yet it is growing and getting toward that. Especially as USCIS, the agency that supervises the program, has been making the policies clearer and the procedures more logical and clear for individuals that are organizing financial investments and for the financiers that are spending, more people have actually been ready and able to put initiative and click money into the process to discover excellent tasks and establish them, and afterwards more financiers have actually agreed to spend their cash and take the threat and use the cash to develop the jobs that is the point of the program.

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These jobs do not linger permanently, and USCIS understands that and are attempting to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not indicate that they are unwinding their examination, and, as a matter of fact, they are all set to refute applications that are not certifying. And they do so, as was mentioned

The local center part of the program is not. It becomes part of an appropriations expense that was enacted in 1992, and ever since that program has been expanded five times for 19 years. It is time for it to be permanent, and it requires to be done now and not nearer to the date of expiration in September.

The procedure takes an excellent while to develop a task and afterwards to obtain the financiers accepted. And they do not want their cash streaming via till they have been approved. And the specter of the expiration of this Regional Facility Program in September is already dissuading the growth of jobs.

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I want to clarify that the Regional Center Program is not the like the half-million-dollar their explanation thing. The concept of half a million or a million is a function of the routine EB-5 legislation that is component of the code. It just is a reality that most of the local facilities that are pooling financial investments have actually set those in places of high unemployment or in rural locations where half- million-dollar investments are allowed, and that makes sense.

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