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The program is positioned in a very odd and non-helpful administrative location for the excitement of international financial investment in the United States. Second, its range is all incorrect. We are handing out way too much for as well small of a financial investment. Further, elevating equity capital fifty percent a million bucks a tranche is, to claim the least, ineffective.


The regional centers, with their half-million schemes, basically undercut the a lot more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, need to have to do with creating business entities, not passive financial investments. It ought to be concerning developing actual work, not elaborate computations regarding the indirect development of tasks, which is currently component of the regulation.


Probably that is one of the reasons why it has actually failed every year to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is as well full of intermediaries, both public and personal. The program has greater than its share of rumors, which I will certainly enter later on if anyone is interested.


This is a firm that likes to state yes to applicants, yet as the table in my testimony shows, USCIS policemans have far more trouble with EB-5 applications than others. I believe that is something that nobody has actually actually spoken about much. EB5 Regional Center Program. There are high rates of internal rejections in this program and for excellent reason

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Seventh, in this program visas go to individuals that could not get them any kind of various other method and to individuals whose organized investment is in fact much less, according to the Federal Book, than the average mean internet worth of all American households in 2007. Let me broaden on among my monitorings.


My price quote based upon the investors' permit applications filed 2 years after the very first investment-- these are the solid ones that stay and are approved. This is 2009-- was that they had concerning $191 million confirmed-- that is my estimate. USCIS does not offer the type of information that we could use on this.


So for every single $100 of boosted international financial investment that year, the EB program added one penny. Under a a lot more wobbly analytical base, the first applications of potential immigrant financiers, USCIS is telling journalists that the degree of financial investment in the just-concluded year had to do with $1.2 billion. Let us approve that.

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Thank you for listening to me. I eagerly anticipate your remarks and concerns. [The prepared statement of David North looks like an entry for the record.] Chairman Leahy. Thanks. Our next witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's migration practice team.




Divine acted as Principal Guidance of the USA Citizenship and Immigration Providers from July 2004 until November 2006, the year in which he was Performing Supervisor, and after that Performing Replacement Director. He has worked extensively with the EB-5 program in personal technique. He was chosen, as I understand, vice head of state of the Association to Buy United States, the national market association of regional facilities.


DECLARATION OF ROBERT C. DIVINE, LAWYER, 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 most, if all 10,000 ports were made use of, it would be 1 percent of the immigration yearly to the United States. It is not near that yet, yet it is growing and obtaining toward that. Particularly as USCIS, the firm that manages the program, has been making the guidelines more clear and the procedures more reasonable and clear for the people who are organizing financial investments and for the investors who are spending, even more people have actually agreed and able to place initiative and cash into the procedure to find excellent jobs and develop them, and after that a lot more financiers have agreed to invest their money and take the threat and use the cash to produce the tasks that is the factor of the program.

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These jobs do not linger permanently, and USCIS recognizes that and are trying to speed the program, speed up the procedure - EB5 Regional Center Program. That does not indicate that they are relaxing their examination, and, as a matter of fact, they are all set to deny applications that are not qualifying. And they do so, as was pointed out


The local center component of the program is not. It becomes part of an appropriations costs that was passed in 1992, and since then that program has actually been prolonged 5 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 date of expiry in September.


The procedure takes an excellent while to develop a project and after that to get the financiers approved. And they do not want their money EB5 Regional Center Program moving with until they have actually been accepted. And the specter of the expiry of this Regional Center Program in September is currently preventing the advancement of tasks.

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I would certainly like to make clear that the Regional Facility Program is not the same as the half-million-dollar point. The idea of half a million or a million is a function of the normal EB-5 legislation that belongs to the code. It simply is a reality that the majority of the local centers that are pooling financial investments have actually set those instead of high joblessness or in backwoods where half- million-dollar financial investments are permitted, and that makes good sense.