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The program is positioned in a very strange and non-helpful governmental place for the excitement of international financial investment in the United States. Second, its scale is all incorrect. We are handing out excessive for too little of a financial investment. Even more, raising venture capital fifty percent a million bucks a tranche is, to state the least, ineffective.


The regional facilities, with their half-million systems, basically damaged the extra practical million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they carry out in Australia, should be about producing service entities, not easy financial investments. It needs to have to do with creating actual tasks, not specify calculations concerning the indirect production of tasks, which is currently part of the legislation.


Maybe that is one of the reasons it has fallen short time after time to reach the legal goal of 10,000 investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is as well loaded with intermediaries, both public and personal. The program has greater than its share of detractions, which I will enter into later if any person is interested.


This is a company that likes to say yes to candidates, but as the table in my testimony reveals, USCIS police officers have a lot extra difficulty with EB-5 applications than others. I believe that is something that nobody has truly talked about a lot. EB5 Regional Center Program. There are high rates of interior rejections in this program and forever reason

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Seventh, in this program visas go to people that might not obtain them otherwise and to individuals whose planned financial investment is in fact much less, according to the Federal Get, than the ordinary mean total assets of all American family members in 2007. Allow me broaden on one of my observations.


My estimate based on the investors' eco-friendly card applications filed 2 years after the very first financial investment-- these are the strong ones that remain and are accepted. This is 2009-- was that they had about $191 million confirmed-- that is my price quote. USCIS does not offer the kind of data that we might utilize on this.


So for each $100 of enhanced foreign financial investment that year, the EB program added one dime. Under a a lot more unsteady statistical base, the initial applications of would-be immigrant capitalists, USCIS is telling journalists that the degree of investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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




Divine acted as Chief Advise of the USA Citizenship and Immigration Solutions from July 2004 until November 2006, the year in which he was Performing Director, and after that Acting Deputy Director. He has actually worked thoroughly with the EB-5 program in personal practice. He was chosen, as I understand, vice head of state of the Association to Invest in United States, the national sector organization of local.


Divine, we are thrilled to have you below. Please go in advance, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At the majority of, if all 10,000 ports were made use of, it would be 1 percent of the immigration yearly to the USA. It is not near that yet, but it is expanding and obtaining toward that. Specifically as USCIS, the agency that oversees the program, has been making the guidelines more clear and the processes more sensible and clear for individuals who are organizing financial investments and EB5 Regional Center Program for the financiers that are investing, more individuals have wanted and able to place effort and money right into the process to locate good jobs and create them, and then much more financiers have agreed to invest their cash and take the danger and use the cash to develop the jobs that is the factor of the program.

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These jobs do not linger permanently, and USCIS recognizes that and are attempting to speed the program, speed the process - EB5 Regional Center Program. That does not imply that they are unwinding their scrutiny, and, actually, they prepare to reject applications that are not qualifying. And they do so, as was pointed out


The regional facility part of the program is not. It belongs to an appropriations bill that was enacted in 1992, and since then that program has been prolonged 5 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 expiry in September.


The procedure takes a good while to develop a project and afterwards to get the financiers accepted. And they do not desire their money streaming with till they have actually been authorized. And the specter of the expiration of this Regional Center Program in September is already discouraging the growth of jobs.

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I would such as to clear up that the Regional Center Program is not the very same as the half-million-dollar thing. 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 simply is a fact that a lot of the local centers that are merging investments have actually set those in areas of high joblessness or in rural locations where fifty percent- million-dollar investments are enabled, and that makes good sense.