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The program is positioned in an extremely weird and non-helpful bureaucratic place for the stimulation of global financial investment in the United States. Second, its scale is all wrong. We are handing out way too much for too little of a financial investment. Further, raising venture capital fifty percent a million dollars a tranche is, to state the least, inefficient.


The local centers, with their half-million systems, essentially undercut the more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they perform in Australia, need to have to do with creating business entities, not passive investments. It ought to be regarding developing actual work, not clarify calculations regarding the indirect development of tasks, which is now component of the regulation.


Maybe that is among the reasons it has stopped working time after time to get to the legal goal of 10,000 investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is as well full of intermediaries, both public and personal. The program has greater than its share of scandals, which I will certainly enter later if anyone is interested.


This is an agency that likes to claim yes to applicants, yet as the table in my testament reveals, USCIS police officers have far more trouble with EB-5 applications than others. I believe that is something that nobody has actually truly spoken about much. EB5 Regional Center Program. There are high prices of internal rejections in this program and permanently factor

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Seventh, in this program visas go to individuals that might not get them differently and to individuals whose planned investment is actually less, according to the Federal Get, than the typical mean total assets of all American family members in 2007. Allow me expand on one of my monitorings.


My quote based upon the capitalists' permit applications filed 2 years after the initial investment-- these are the solid 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 give the type of information that we might make use of on this.


For every $100 of enhanced international financial investment that year, the EB program added one cent. Under a much a lot more unsteady analytical base, the initial applications of potential immigrant financiers, USCIS is informing journalists that the degree of financial investment in the just-concluded year was about $1.2 billion. Let us accept that.

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Thanks for paying attention to me. I expect your remarks and concerns. [The ready declaration of David North looks like an entry for the document.] 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 firm's immigration practice team.




Divine acted as Principal Guidance of the USA Citizenship and Immigration Services from July 2004 till November 2006, the year in which he was his response Acting Supervisor, and afterwards Performing Replacement Director. He has worked extensively with the EB-5 program secretive method. He was elected, as I comprehend, vice head of state of the Association to Invest in United States, the national market organization of regional.


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


At many, if all 10,000 slots were made use of, it would be 1 percent of the immigration each year to the USA. It is not near that yet, but it is growing and obtaining toward that. Particularly as USCIS, the firm that oversees the program, has been making the regulations more clear and the procedures extra sensible and clear for the individuals that are organizing investments and for the capitalists who are investing, more people have actually wanted and able to put effort and money right into the process to locate good jobs and develop them, and then more capitalists have actually wanted to invest their cash and take the threat and make use of the cash to produce the jobs that is the point of the program.

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These jobs do not wait around permanently, and USCIS he has a good point comprehends that and are try this attempting to speed the program, speed the procedure - EB5 Regional Center Program. That does not mean that they are unwinding their scrutiny, and, actually, they prepare 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 costs that was passed in 1992, and ever since that program has actually been prolonged 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 process takes a good while to work up a task and after that to obtain the capitalists authorized. And they do not want their money moving via up until they have been approved. And the specter of the expiration of this Regional Facility Program in September is already dissuading the growth of tasks.

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I wish to clarify that the Regional Facility Program is not the like the half-million-dollar thing. The concept 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 the majority of the regional centers that are merging investments have actually set those in areas of high unemployment or in backwoods where fifty percent- million-dollar investments are permitted, and that makes feeling.