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The program is placed in a really odd and non-helpful administrative area for the stimulation of worldwide investment in the United States. Second, its range is all incorrect. We are distributing excessive for as well small of an investment. Further, elevating venture capital fifty percent a million bucks a tranche is, to say the least, inefficient.


The regional facilities, with their half-million schemes, basically undercut the more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, must be about developing company entities, not easy investments. It needs to have to do with creating genuine jobs, not clarify calculations regarding the indirect creation of work, which is now component of the regulations.


Perhaps that is just one of the reasons why it has actually stopped working every year to reach the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is too loaded with intermediaries, both public and exclusive. The program has more than its share of detractions, which I will certainly get into later if anyone is interested.


This is an agency that loves to say yes to applicants, however as the table in my testament shows, USCIS police officers have far more trouble with EB-5 applications than others. I believe that is something that no one has actually truly chatted about much. EB5 Regional Center Program. There are high prices of inner denials in this program and forever factor

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Seventh, in this program visas most likely to individuals that can not get them any other method and to individuals whose scheduled investment is actually less, according to the Federal Book, than the ordinary mean internet well worth of all American households in 2007. Allow me expand on among my observations.


My quote based upon the financiers' eco-friendly card applications filed 2 years after the first investment-- these are the strong ones that continue to be and are approved. This is 2009-- was that they had concerning $191 million confirmed-- that is my price quote. USCIS does not give the sort of information that we might use on this.


For every $100 of enhanced foreign investment that year, the EB program added one cent. Under a far more wobbly statistical base, the first applications of prospective immigrant capitalists, USCIS is informing journalists that the level of financial investment in the just-concluded year had to do with $1.2 billion. Let us accept that.

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Thanks for listening to me. I eagerly anticipate your remarks and inquiries. [The prepared statement of David North appears as 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 company's migration practice group.




Divine acted as Chief Guidance of the United States Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Acting Supervisor, and then Acting Replacement Director. He has functioned extensively with the EB-5 program secretive practice. He was elected, as I comprehend, vice president of the Association to Spend in USA, the national industry organization of regional.


STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others.


At a lot of, if all 10,000 slots were made use of, it would be 1 percent of the migration yearly to the USA. It is not near that yet, however it is expanding and getting towards that. Particularly as USCIS, the firm that manages the program, has been making the regulations more clear and the processes extra reasonable and clear for the people that are arranging financial investments and for the financiers who are investing, more people have actually wanted and able to place effort and money into the process to find good tasks and develop them, and afterwards more capitalists have actually been prepared to spend their money and take the here risk and make use of the money to create the jobs that is the point of the program.

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These tasks do not linger permanently, and USCIS recognizes that and are attempting to speed up the program, speed the process - EB5 Regional Center Program. That does not mean that they are relaxing their analysis, and, actually, they are all set to reject applications that are not certifying. And they do so, as was stated


The local facility part of the program is not. It belongs to an appropriations expense that was passed in 1992, and because then that program has been prolonged 5 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 day of expiry in September.


The process takes an excellent while to develop a task and after that to obtain the financiers accepted. And they do not want their cash flowing with till they have been accepted. And the specter of the expiration of this Regional Facility Program in September is already dissuading the development of jobs.

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I would like to clear up that the Regional Facility Program is not the exact same as the half-million-dollar thing. The idea of half a million or a million is a function of the routine EB-5 regulation that becomes part of the code. It just is a reality that most of the local centers that are merging financial investments have established those in places of high unemployment or in rural locations where half- million-dollar investments are permitted, and that makes good sense.