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First, the program is placed in a very odd and non-helpful governmental area for the stimulation of global investment in the USA. Second, its range is all incorrect. We are handing out excessive for as well little of a financial investment. Further, raising financial backing half a million bucks a tranche is, to claim the least, ineffective.


The local centers, with their half-million schemes, basically undercut the much more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, ought to be regarding producing organization entities, not passive financial investments. It ought to be concerning producing real tasks, not elaborate computations about the indirect creation of work, which is now part of the regulation.


Possibly that is just one of the reasons why it has actually fallen short time after time to get to the legislative goal of 10,000 investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is as well filled up with middlemen, both public and exclusive. The program has more than its share of rumors, which I will obtain into later if any person is interested.


This is an agency that loves to state yes to candidates, but as the table in my statement reveals, USCIS officers have far more problem with EB-5 applications than others. I think that is something that nobody has actually actually discussed a lot. EB5 Regional Center Program. There are high rates of internal rejections in this program and permanently factor

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Seventh, in this program visas most likely to individuals that can not obtain them otherwise and to individuals whose scheduled financial investment is actually less, according to the Federal Get, than the ordinary mean web well worth of all American families in 2007. Allow me expand on among my monitorings.


My price quote based on the capitalists' permit applications submitted 2 years after the very first investment-- these are the strong ones that stay and are approved. This is 2009-- was that they had concerning $191 million validated-- that is my price quote. USCIS does not offer the sort of data that we can use on this.


For every $100 of boosted international investment that year, the EB program contributed one cent. Under a far more wobbly analytical base, the preliminary applications of prospective immigrant financiers, USCIS is telling reporters that the level of investment in the just-concluded year was concerning $1.2 billion. Let us accept that.

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Thanks for listening to me. I anticipate your comments and questions. [The prepared statement of David North looks like an entry for the document.] Chairman Leahy. Thanks. Our next witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's immigration method group.




Divine offered as Principal Guidance of the USA Citizenship and Immigration Services from July 2004 till November 2006, the year in which he was Acting Supervisor, and after that Performing Replacement Supervisor. He has actually worked thoroughly with the EB-5 program secretive practice. He was chosen, as I recognize, vice president of the Organization to Spend in United States, the nationwide sector association of regional.


Divine, we are happy to have you here. Please go on, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, PURCHASE THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At many, if all 10,000 slots were used, it would certainly our website be 1 percent of the immigration each year to the USA. It is not near that yet, yet it is growing and obtaining towards that. Specifically as USCIS, the firm that supervises the program, has actually been making the guidelines clearer and the processes extra rational and clear for individuals that are organizing financial investments and for the financiers that are investing, even more people have actually wanted and able to place initiative and money into the process to discover great projects and create them, and after that more capitalists have been ready to invest their money and take the threat and utilize the cash to develop the work that is the point of the program.

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These tasks do not wait around for life, and USCIS recognizes that and are attempting to speed the program, speed up the procedure - EB5 Regional Center Program. That does not suggest that they are unwinding their analysis, and, in reality, they prepare to reject applications that are not qualifying. And they do so, as was stated


The regional center part of the program is not. It belongs to an appropriations expense that was established in 1992, and ever since that program has actually 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 procedure takes a great while to develop a project and after that to get the financiers approved. And they do not desire their cash streaming through until they have actually been accepted. And the specter of the expiration of this Regional Facility Program in September is already discouraging additional info the growth of projects.

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I wish pop over here to clarify that the Regional Center Program is not the exact same as the half-million-dollar point. The concept of half a million or a million is a function of the normal EB-5 legislation that becomes part of the code. It just is a truth that a lot of the regional facilities that are merging investments have established those in areas of high unemployment or in backwoods where half- million-dollar investments are enabled, which makes good sense.