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Initially, the program is positioned in an extremely strange and non-helpful bureaucratic location for the stimulation of international investment in the United States. Second, its scale is all incorrect. We are providing away excessive for as well tiny of an investment. Better, elevating venture capital half a million bucks a tranche is, to say the least, ineffective.


The regional facilities, with their half-million systems, essentially damaged the more practical million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, must have to do with creating service entities, not easy financial investments. It must be about developing real work, not clarify computations about the indirect creation of tasks, which is now part of the regulation.


Perhaps that is just one of the reasons it has actually fallen short year after year to get to the legislative objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is as well loaded with intermediaries, both public and private. The program has greater than its share of rumors, which I will get into later on if anybody is interested.


This is an agency that likes to state yes to candidates, but as the table in my testament shows, USCIS officers have a lot more trouble with EB-5 applications than others. I assume that is something that no one has truly spoken about much. EB5 Regional Center Program. There are high prices of inner denials in this program and for excellent factor

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Seventh, in this program visas go to individuals who could not get them any type of other method and to people whose planned financial investment is really much less, according to the Federal Book, than the ordinary mean net worth of all American households in 2007. Allow me increase on one of my monitorings.


My price quote based upon the capitalists' environment-friendly card applications submitted 2 years after the first financial investment-- these are the strong ones that stay and are approved. This is 2009-- was that they had concerning $191 million validated-- that is my estimate. USCIS does not provide the sort of information that we might utilize on this.


For every $100 of raised international investment that year, the EB program contributed one dime. Under a far more wobbly statistical base, the initial applications of would-be immigrant investors, USCIS is telling reporters that the degree of investment in the just-concluded year was concerning $1.2 billion. Allow us approve that.

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Thanks for listening to me. I expect your comments and questions. [The prepared declaration of David North appears as a submission for the document.] Chairman Leahy. Thank you. Our next witness is her response Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's migration method team.




Divine offered as Chief Advice of the United States Citizenship and Immigration Providers from July 2004 until November 2006, the year in which he was Acting Supervisor, and after that Performing Deputy Director. He has worked thoroughly with the EB-5 program secretive method. He was chosen, as I understand, vice head of state of the Association to Invest in United States, the nationwide market association of regional.


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


At most, if all 10,000 slots were utilized, it would certainly be 1 percent of the migration yearly to the USA. It is not near that yet, but it is expanding and obtaining towards that. Especially as USCIS, the agency that supervises the program, has actually been making the regulations more clear and the procedures extra logical and clear for the people that are organizing financial investments and for the investors that are spending, more individuals have actually agreed and able to useful reference place initiative and money into the procedure to locate great projects and develop them, and after that extra financiers have been ready to spend their cash and take the risk and utilize the cash to produce the jobs that is the factor of the program.

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These projects do not linger permanently, and USCIS comprehends that and are trying to speed up the program, speed the process - EB5 Regional Center Program. That does not imply that they are relaxing their scrutiny, and, actually, they are all set to deny applications that use this link are not certifying. And they do so, as was mentioned


The regional facility component of the program is not. It belongs to an appropriations bill that was enacted 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 needs to be done now and not nearer to the date of expiration in September.


The procedure takes an excellent while to develop a job and then to get the capitalists authorized. And they do not desire their money flowing through till they have actually been approved. And the specter of the expiry of this Regional Center Program in September is already preventing the growth of jobs.

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I want to clarify that the Regional Center Program is not the like the half-million-dollar point. The concept of half a million or a million is a function of the normal EB-5 law that becomes part of the code. It just is a reality that a lot of the regional centers that are merging investments have actually set those instead of high unemployment or in backwoods where half- million-dollar investments are permitted, which makes good sense.