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Initially, the program is positioned in a very weird and non-helpful bureaucratic area for the stimulation of international financial investment in the USA. Second, its range is all wrong. We are offering away also much for as well small of a financial investment. Better, raising equity capital half a million bucks a tranche is, to say the least, ineffective.


The local facilities, with their half-million systems, basically damaged the a lot more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, should have to do with creating company entities, not passive investments. It ought to be concerning developing real jobs, not clarify estimations regarding the indirect development of work, which is currently part of the regulation.


Probably that is among the reasons it has actually fallen short year after year to reach the legal objective of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently clumsy, 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 on if any person is interested.


This is an agency that enjoys to claim yes to candidates, yet as the table in my testimony shows, USCIS police officers have a lot more trouble with EB-5 applications than others. I assume that is something that no one has really discussed a lot. EB5 Regional Center Program. There are high prices of interior denials in this program and completely reason

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Seventh, in this program visas most likely to people who can not obtain them otherwise and to individuals whose planned financial investment is really much less, according to the Federal Get, than the typical mean total assets of all American households in 2007. Allow me expand on among my monitorings.


My price quote based upon the financiers' environment-friendly card applications filed 2 years after the very first financial investment-- these are the strong ones that continue to be and are accepted. This is 2009-- was that they had regarding $191 million validated-- that is my estimate. USCIS does not give the kind of information that we can make use of on this.


For every $100 of boosted foreign financial investment that year, the EB program added one dime. Under a far more unsteady analytical base, the first applications of would-be immigrant investors, USCIS is telling journalists 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 listening to me. I anticipate your remarks and concerns. [The prepared statement of David North looks like an entry for the document.] Chairman Leahy. Thank you. Our next 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 group.




Divine offered as Principal Advice of the United States Citizenship and Immigration Solutions from July 2004 till November 2006, the year in which he was Performing Director, and afterwards Performing Replacement Director. He has functioned extensively with the EB-5 program in personal practice. He was chosen, as I recognize, vice president of site here the Association to Invest in USA, the national market association of regional centers.


Divine, we are thrilled to have you below. Please proceed, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, BUY THE USA (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At most, if all 10,000 slots were utilized, it would be 1 percent of the migration yearly to the USA. It is not near that yet, but it is growing and getting toward that. Specifically as USCIS, the agency that supervises the program, has actually been making the regulations more clear and the procedures much more sensible and clear for the individuals that are organizing investments and for the investors that are spending, more people have actually wanted and able to put effort and money into the procedure to discover good projects and establish them, and after that much more investors have been prepared to invest their cash and take the threat and utilize the cash to create the work that is the point of the program.

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These tasks do not linger for life, and USCIS comprehends that and are her response trying to speed up the program, speed up the process - EB5 Regional Center Program. That does not indicate that they are relaxing their scrutiny, and, as a matter of fact, they are ready to refute applications that are not qualifying. And they do so, as was mentioned


The regional center component of the program is not. It belongs to an appropriations expense that was established in 1992, and considering that then that program has actually been expanded 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 day of expiration in September.


The process takes a great while to work up a job and then to obtain the financiers authorized. And they do not desire their cash streaming with up until they have been approved. And the specter of the expiration of this Regional Facility Program in September is already dissuading the development 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 regulation that belongs to the code. It just is a fact that a lot of the regional centers that are merging investments have actually established those in locations of high unemployment or in rural locations where fifty percent- site link million-dollar financial investments are enabled, which makes good sense.