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The program is placed in an extremely strange and non-helpful bureaucratic area for the stimulation of worldwide financial investment in the United States. Second, its range is all wrong. We are handing out excessive for as well tiny of an investment. Further, elevating endeavor resources fifty percent a million dollars a tranche is, to say the least, inefficient.


The regional centers, with their half-million systems, essentially 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 do in Australia, need to be about creating company entities, not easy investments. It ought to be concerning producing genuine jobs, not elaborate computations concerning the indirect creation of jobs, which is currently component of the regulations.


Maybe that is among the reasons why it has failed year after year to reach the legal objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is too full of intermediaries, both public and private. The program has greater than its share of rumors, which I will enter later if anybody is interested.


This is an agency that loves to say yes to applicants, but as the table in my statement reveals, USCIS police officers have a lot a lot more difficulty 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 rates of interior denials in this program and forever reason

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Seventh, in this program visas go to people who can not get them differently and to individuals whose organized financial investment is in fact much less, according to the Federal Reserve, than the ordinary mean total assets of all American households in 2007. Let me expand on among my observations.


My price quote based on the financiers' permit applications filed 2 years after the initial investment-- these are the solid ones that remain and are authorized. This is 2009-- was that they had concerning $191 million validated-- that is my quote. USCIS does not provide the kind of information that we can use on this.


So for every single $100 of raised international investment that year, the EB program added one penny. Under a much extra shaky analytical base, the first applications of potential immigrant financiers, USCIS is telling reporters that the degree of financial investment in the just-concluded year was regarding $1.2 billion. Let us approve that.

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Thank you for paying attention to me. I expect weblink your remarks and concerns. [The ready statement of David North looks like 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 go the head of the company's immigration technique group.




Divine acted as Principal Advice of the United States Citizenship and Immigration Solutions from July 2004 till November 2006, the year in which he was Acting Director, and then Acting Replacement Supervisor. He has worked extensively with the EB-5 program in private practice. He was elected, as I comprehend, vice head of state of the Association to Buy USA, the national sector visit homepage association of local facilities.


Divine, we are thrilled to have you right here. Please go on, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, 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 utilized, it would certainly be 1 percent of the immigration every year to the USA. It is not near that yet, yet it is expanding and obtaining toward that. Especially as USCIS, the company that supervises the program, has been making the guidelines more clear and the procedures much more sensible and clear for the people that are organizing financial investments and for the financiers that are spending, even more individuals have actually agreed and able to place initiative and cash into the procedure to find great projects and establish them, and then extra capitalists have actually wanted to invest their money and take the threat and utilize the cash to create the jobs that is the factor of the program.

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These tasks do not wait about for life, and USCIS understands that and are trying to speed the program, speed the process - EB5 Regional Center Program. That does not imply that they are unwinding their analysis, and, actually, they are prepared to refute applications that are not qualifying. And they do so, as was stated


The local facility component of the program is not. It is component of an appropriations costs that was passed in 1992, and ever since that program has actually been expanded five times for 19 years. It is time for it to be permanent, and it needs to be done now and not nearer to the day of expiry in September.


The process takes an excellent while to function up a project and afterwards to obtain the financiers authorized. And they do not desire their cash streaming with till they have been authorized. And the specter of the expiration of this Regional Center Program in September is currently discouraging the development of tasks.

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I wish to clear up that the Regional Facility Program is not the very same as the half-million-dollar point. The idea of half a million or a million is a function of the regular EB-5 legislation that becomes part of the code. It just is a reality that the majority of the local facilities that are merging financial investments have actually set those instead of high joblessness or in country areas where half- million-dollar investments are allowed, and that makes good sense.