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First, the program is placed in a really odd and non-helpful administrative place for the excitement of international investment in the USA. Second, its scale is all incorrect. We are handing out excessive for too little of a financial investment. Further, increasing financial backing half a million dollars a tranche is, to say the least, ineffective.


The regional centers, with their half-million systems, essentially damaged the extra reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they do in Australia, need to be about creating service entities, not easy investments. It ought to be regarding producing genuine work, not elaborate computations concerning the indirect creation of tasks, which is now component of the legislation.


Possibly that is just one of the reasons why it has actually failed time after time to reach the legislative goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is as well loaded with middlemen, both public and exclusive. The program has more than its share of rumors, which I will get involved in later if any person is interested.


This is a firm that loves to state yes to candidates, yet as the table in my testimony shows, USCIS police officers have a lot more difficulty with EB-5 applications than others. I think that is something that no one has actually really discussed a lot. EB5 Regional Center Program. There are high rates of interior denials in this program and completely reason

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Seventh, in this program visas go to individuals who might not get them differently and to individuals whose scheduled financial investment is really less, according to the Federal Reserve, than the ordinary mean net worth of all American families in 2007. Allow me increase on among my observations.


My estimate based on the financiers' eco-friendly card applications filed 2 years after the initial investment-- these are the strong ones that stay and are authorized. This is 2009-- was that they had about $191 million verified-- that is my estimate. USCIS does not supply the type of information that we could make use of on this.


For every $100 of enhanced international investment that year, the EB program contributed one dime. Under a much a lot more wobbly analytical base, the initial applications of prospective immigrant investors, USCIS is telling reporters that the level of investment in the just-concluded year was regarding $1.2 billion. Let us approve that.

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Thank you for listening to me. I expect your comments and questions. [The prepared statement of David North appears as an entry for the document.] 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 immigration practice group.




Divine acted as Chief Counsel of the USA Citizenship and Immigration Services from July 2004 up 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 in private method. He was chosen, as I comprehend, vice head of state of the Association to Invest in United States, the national market association of local facilities.


STATEMENT OF ROBERT C. DIVINE, ATTORNEY, look at these guys 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, Legislator Grassley, and others.


At a lot of, if all 10,000 ports were used, it would be 1 percent of the migration yearly to the United States. It is not near that yet, but it is growing and getting toward that. Particularly as USCIS, the agency that supervises the Visit Website program, has been making the guidelines clearer and the procedures more logical and clear for individuals who are organizing financial investments and for the capitalists that are spending, more people have actually been willing and able to put initiative and money into the process to locate excellent tasks and develop them, and then more financiers have actually wanted to spend their money and take the risk and utilize the cash to produce the tasks that is the point of the program.

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These jobs do not linger for life, and USCIS comprehends that and are attempting to speed up the program, speed the procedure - EB5 Regional Center Program. That does not indicate that they are relaxing their analysis, and, as a matter of fact, they are ready to deny applications that are not certifying. And they do so, as was stated


The regional facility component of the program is not. It becomes part of an appropriations expense that was established in 1992, and since then 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 date of expiration in September.


The process takes a good while to work up a job and afterwards to get the investors authorized. And they do not want their money streaming with up until they have been accepted. And the specter of the expiry of this Regional Facility Program in September is currently inhibiting the development of projects.

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I would love to make clear that the Regional Center Program is not the exact same as the half-million-dollar thing. The concept of half a million or a million is a feature of the regular EB-5 regulation that becomes part of the code. It just is a truth that a lot of the regional facilities that are merging investments have established those in locations of high unemployment or in try this site country areas where fifty percent- million-dollar financial investments are enabled, and that makes good sense.