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First, the program is placed in a very strange and non-helpful administrative place for the excitement of international investment in the USA. Second, its range is all incorrect. We are giving away way too much for too little of an investment. Further, elevating equity capital fifty percent a million bucks a tranche is, to state the least, inefficient.


The regional facilities, with their half-million plans, essentially undercut the a lot more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, should be regarding developing service entities, not easy financial investments. It needs to be concerning developing actual tasks, not elaborate calculations about the indirect production of tasks, which is now component of the regulation.


Probably that is one of the reasons it has fallen short time after time to get to the legal objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is as well loaded with middlemen, both public and personal. The program has greater than its share of rumors, which I will certainly enter into later if anyone is interested.


This is a company that loves to claim yes to applicants, but as the table in my testament reveals, USCIS police officers have far more problem with EB-5 applications than others. I believe that is something that nobody has actually really discussed a lot. EB5 Regional Center Program. There are high prices of interior denials in this program and for excellent reason

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Seventh, in this program visas most likely to individuals who could not obtain them any type of various other way and to people whose organized investment is really less, according to the Federal Reserve, than the average mean net well worth of all American family members in 2007. Let me increase on among my monitorings.


My quote based upon the financiers' eco-friendly card applications filed 2 years after the initial financial investment-- these are the strong ones that remain and are approved. This is 2009-- was that they had regarding $191 million verified-- that is my price quote. USCIS does not give the sort of information that we could use on this.


For every $100 of boosted international investment that year, the EB program contributed one cent. Under a far more wobbly statistical base, the first applications of prospective immigrant investors, USCIS is telling journalists that the level of investment in the just-concluded year was concerning $1.2 billion. Allow us approve that.

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Thank you for listening to me. I anticipate your remarks and inquiries. [The ready statement of David North shows up 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 firm's migration practice team.




Divine acted as Principal Counsel of the United States Citizenship and Immigration Solutions from July 2004 until November 2006, the year in which he was Acting Director, and then Acting Replacement Director. He has actually functioned thoroughly with the EB-5 program secretive practice. He was elected, as I comprehend, vice head of state of the Organization to Invest in USA, the nationwide sector organization of local.


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


At a lot of, if all 10,000 slots were made use of, it would certainly be 1 percent of the migration annually to the United States. It is not near that yet, however it is growing and obtaining toward that. Especially as USCIS, the agency that supervises the program, has been making the policies more clear and the processes more logical and clear for individuals that are arranging financial investments and for the investors who are spending, even more people have been eager and able to place initiative and cash right into the process to locate great jobs and develop them, and after that much more capitalists have been willing to spend their cash and take the risk and use the money to produce the jobs that is the point of the program.

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These jobs do not linger for life, and USCIS understands that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That read more does not suggest that they are unwinding their analysis, and, as a matter of fact, they are ready to reject applications that are not qualifying. And they do so, as was discussed


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 been prolonged five 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 expiration in September.


The process takes a great while to develop a project and after that to obtain the investors authorized. And they do not want their cash streaming through up until they have actually been authorized. And the specter of the expiration of this Regional Center Program in September is currently dissuading the growth of jobs.

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I would love to make clear that the Regional Center Program is not the very same as the half-million-dollar thing. The idea of half a million or a million is a feature of the normal EB-5 legislation that becomes part of the code. It just is a truth that many of the regional centers that are pooling investments have set those instead of high joblessness or in country areas where half- million-dollar financial investments are permitted, which makes good sense.