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The program is positioned in a really strange and non-helpful governmental place for the stimulation of global investment in the United States. Second, its range is all wrong. We are distributing way too much for as well small of an investment. Even more, increasing venture funding half a million bucks a tranche is, to state the least, ineffective.

The local facilities, with their half-million plans, basically damaged the much more practical million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, need to be regarding developing service entities, not passive investments. It needs to be about producing genuine work, not elaborate computations about the indirect creation of tasks, which is currently component of the regulation.


Possibly that is one of the reasons it has stopped working every year to reach the legislative goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is also full of middlemen, both public and private. The program has even more than its share of detractions, which I will certainly enter later if anyone is interested.


This is an agency that likes to claim yes to candidates, yet as the table in my statement shows, USCIS police officers have a lot more problem with EB-5 applications than others. I believe that is something that no one has really discussed much. EB5 Regional Center Program. There are high rates of inner rejections in this program and permanently reason

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Seventh, in this program visas most likely to people that can not get them differently and to people whose organized financial investment is really less, according to the Federal Book, than the average mean total assets of all American family members in 2007. Allow me broaden on among my observations.


My price quote based upon the financiers' copyright applications submitted 2 years after the very first investment-- these are the strong ones that continue to be and are approved. This is 2009-- was that they had regarding $191 million confirmed-- that is my price quote. USCIS does not provide the type of information that we could utilize on this.


For every $100 of enhanced international financial investment that year, the EB program added one penny. Under a far more wobbly statistical base, the first applications of potential immigrant capitalists, USCIS is telling journalists that the degree of financial investment in the just-concluded year was regarding $1.2 billion. Allow us approve that.

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Thanks for paying attention to me. I look onward to your remarks and concerns. [The prepared declaration of David North looks like a submission for the record.] 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 firm's immigration method group.

Divine acted as Chief Advise of the USA Citizenship and Immigration Services from July 2004 till November 2006, the year in which he was Performing Supervisor, and after that Performing Replacement Supervisor. He has actually functioned extensively with the EB-5 program in personal practice. He was chosen, as I recognize, vice president of the Association to Invest in U.S.A., the nationwide sector organization of local facilities.


Divine, we are pleased to have you below. Please go in advance, sir. click for source 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 most, if all click this site 10,000 slots were used, it would be 1 percent of the immigration annually to the United States. It is not near that yet, but it is growing and obtaining towards that. Specifically as USCIS, the firm that oversees the program, has actually been making the regulations more clear and the procedures extra sensible and clear for individuals that are arranging financial investments and for the capitalists that are spending, more people have wanted and able to put initiative and cash right into the process to locate great jobs and develop them, and afterwards more capitalists have actually wanted to spend their cash and take the danger and utilize the cash to develop the jobs that is the point of the program.

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These projects do not linger permanently, and USCIS recognizes that and are attempting to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not suggest that they are relaxing their scrutiny, and, in reality, they are all set to refute applications that are not qualifying. And they do so, as was pointed out

The regional center component of the program is not. It belongs to an appropriations expense that was established in 1992, and ever since that program has been extended 5 times for 19 years. It is time for it to be irreversible, and it requires to be done currently and not nearer to the date of expiration in September.


The procedure takes a great while to develop a task and after that to obtain the financiers authorized. And they do not want their money flowing through until they have been authorized. And the specter of the expiration of this Regional Center Program in September is already preventing the advancement of jobs.

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I wish to make clear that the Regional Facility Program is not the like the half-million-dollar point. 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 the majority of check these guys out the local centers that are merging investments have actually set those instead of high unemployment or in backwoods where half- million-dollar financial investments are enabled, which makes sense.