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First, the program is placed in an extremely weird and non-helpful bureaucratic place for the excitement of global investment in the United States. Second, its scale is all wrong. We are providing away too much for also small of an investment. Additionally, elevating endeavor resources half a million dollars a tranche is, to say the least, inefficient.


The local facilities, with their half-million plans, essentially damaged the a lot more practical million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, should be about creating business entities, not passive investments. It ought to have to do with developing genuine tasks, not clarify estimations about the indirect creation of jobs, which is currently part of the regulation.


Maybe that is among the reasons that it has actually failed every year to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is also loaded with middlemen, both public and personal. The program has more than its share of rumors, which I will certainly get involved in later on if anyone is interested.


This is a company that enjoys to say yes to candidates, yet as the table in my testimony reveals, USCIS police officers have far more problem with EB-5 applications than others. I think that is something that nobody has actually actually spoken about a lot. EB5 Regional Center Program. There are high prices of internal denials in this program and completely reason

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Seventh, in this program visas most likely to people that can not get them any various other means and to people whose scheduled investment is in fact less, according to the Federal Reserve, than the average mean net well worth of all American family members in 2007. Allow me broaden on one of my observations.


My quote based on the financiers' eco-friendly card applications filed 2 years after the first financial investment-- these are the strong ones that stay and are approved. This is 2009-- was that they had about $191 million validated-- that is my price quote. USCIS does not supply the type of data that we could make use of on this.


For every $100 of boosted international financial investment that year, the EB program contributed one cent. Under a much extra shaky statistical base, the preliminary applications of prospective immigrant capitalists, USCIS is telling journalists that the level of investment in the just-concluded year was about $1.2 billion. Allow us approve that.

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Thank you for paying attention to me. I anticipate your comments and inquiries. [The ready statement of David North appears as an entry for the document.] 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 firm's migration technique group.




Divine offered as Chief Advice of the United States Citizenship and Migration Services from July 2004 up until November 2006, the year in which he was Performing Director, and afterwards Performing Replacement Director. He has actually website worked extensively with the EB-5 program in personal practice. He was chosen, as I comprehend, vice president of the Organization to Invest in United States, the nationwide industry organization of regional.


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, Senator Grassley, and others.


At the majority of, if all 10,000 ports were used, it would certainly be 1 percent of the immigration yearly to the United States. It is not near that yet, but it is expanding and getting towards that. Especially as USCIS, the agency that oversees the program, has actually been making the guidelines more clear and the procedures much more sensible and clear for individuals that are organizing financial investments and for the financiers who are investing, even more people have actually wanted and able to place effort and money right into the process to locate excellent tasks and develop them, and then a lot more financiers have wanted to spend their money and take the threat and make use of the cash to produce the tasks that is the point of the program.

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These projects do not wait about for life, and USCIS recognizes that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That does not imply that they are relaxing their examination, and, as a matter of fact, they are prepared to deny applications that are not qualifying. And they do so, as was discussed


The regional facility part of the program is not. It belongs to an appropriations expense that was enacted in 1992, and given that then that program has been expanded 5 times for 19 years. It is time for it to be irreversible, and it requires to be done now and not nearer to the day of expiration in September.


The process takes an excellent while to work up a task and afterwards to get the capitalists approved. And they do not want their cash flowing with till they have been authorized. And the specter of the expiry of this Regional Center Program in September is already inhibiting the advancement of tasks.

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I would certainly such as to make clear that the Regional Center Program is not the like the half-million-dollar thing. The concept of half a million or a million is a function of the normal EB-5 law that is component of the code. It just is a reality that the majority of the regional facilities that are merging investments have actually established those instead of high joblessness or in country locations where fifty percent- million-dollar financial investments are enabled, which makes feeling.