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The program is placed in a very odd and non-helpful administrative place for the stimulation of global investment in the United States. We are giving away too much for as well tiny of a financial investment.


The local facilities, with their half-million plans, basically undercut the more practical million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, ought to have to do with developing service entities, not passive financial investments. It ought to have to do with developing genuine work, not specify calculations concerning the indirect creation of jobs, which is now component of the legislation.


Possibly that is just one of the factors why it has actually fallen short every year to reach the legislative goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is too loaded with intermediaries, both public and private. The program has greater than its share of scandals, which I will enter into later on if any person is interested.


This is a firm that loves to claim yes to candidates, yet as the table in my testimony reveals, USCIS officers have a lot more difficulty with EB-5 applications than others. I think that is something that nobody has truly spoken about a lot. EB5 Regional Center Program. There are high prices of inner denials in this program and for good factor

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Seventh, in this program visas most likely to individuals who might not get them any type of various other means and to people whose scheduled investment is actually much less, according to the Federal Get, than the average mean internet worth of all American family members in 2007. Allow me broaden on among my observations.


My quote based on the investors' copyright applications filed 2 years after the initial financial investment-- these are the strong ones that stay and are authorized. This is 2009-- was that they had concerning $191 million verified-- that is my estimate. USCIS does not offer the kind of data that we could use on this.


For every $100 of raised foreign financial investment that year, the EB program contributed one dime. Under a much more unsteady statistical base, the initial applications of would-be immigrant capitalists, USCIS is informing reporters that the degree of financial investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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Thank you for paying attention to me. I eagerly anticipate your remarks and concerns. [The ready statement of David North appears as a submission for the record.] Chairman Leahy. Thanks. 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 technique group.




Divine served as Chief Counsel of the USA Citizenship and Immigration Providers from July 2004 until November 2006, the year in which he was Performing Director, and after that Acting Replacement Supervisor. He has functioned extensively with the EB-5 program in personal this link practice. He was elected, as I recognize, vice president of the Association to Invest in USA, the national market organization of local.


STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At the majority of, if all 10,000 ports were used, it would be 1 percent of the immigration annually to the United States. It is not near that yet, but it is expanding and obtaining toward that. Particularly as USCIS, the company that supervises the program, has been making click to read more the regulations clearer and the processes a lot more logical and clear for the people who are arranging investments and for the investors that are investing, more people have actually been eager and able to place initiative and money right into the process to discover great projects and establish them, and afterwards a lot more investors have actually been willing to spend their cash and take the risk and use the cash to develop the work that is the factor of the program.

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These projects do not linger forever, and USCIS comprehends that and are trying to speed up the program, speed up the process - EB5 Regional Center Program. That does not indicate that they are unwinding their analysis, and, as a matter of fact, they are prepared to reject applications that are not qualifying. And they do so, as was stated


The regional center component of the program is not. It becomes part of an appropriations expense that was established in 1992, and ever since that program has been expanded five times his response for 19 years. It is time for it to be long-term, and it needs to be done currently and not nearer to the day of expiry in September.


The process takes a good while to function up a job and then to get the investors authorized. And they do not desire their cash streaming with up until they have been approved. And the specter of the expiry of this Regional Center Program in September is already dissuading the growth of projects.

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I want to clear up that the Regional Center Program is not the same as the half-million-dollar point. The concept of half a million or a million is a function of the routine EB-5 law that becomes part of the code. It just is a fact that most of the regional centers that are pooling financial investments have actually established those in places of high joblessness or in backwoods where half- million-dollar financial investments are allowed, and that makes feeling.