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First, the program is positioned in a really weird and non-helpful bureaucratic location for the excitement of worldwide financial investment in the USA. Second, its scale is all incorrect. We are handing out excessive 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 centers, with their half-million schemes, basically damaged the more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, need to be about producing organization entities, not easy financial investments. It needs to have to do with producing genuine jobs, not clarify calculations regarding the indirect development of work, which is currently part of the regulation.


Probably that is among the reasons it has actually fallen short time after time to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is too loaded with middlemen, both public and personal. The program has greater than its share of detractions, which I will enter later if anybody is interested.


This is a firm that likes to claim yes to applicants, yet as the table in my testament reveals, USCIS officers have far more trouble with EB-5 applications than others. I assume that is something that nobody has actually actually discussed much. EB5 Regional Center Program. There are high rates of interior rejections in this program and completely reason

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Seventh, in this program visas go to individuals that might not get them otherwise and to people whose planned investment is actually less, according to the Federal Book, than the typical mean web worth of all American families in 2007. Let me broaden on one of my monitorings.


My quote based on the investors' environment-friendly card applications filed 2 years after the first financial investment-- these are the strong ones that remain and are approved. This is 2009-- was that they had concerning $191 million validated-- that is my quote. USCIS does not offer the sort of data that we can utilize on this.


So for each $100 of boosted foreign investment that year, the EB program added one penny. Under a much more unsteady analytical base, the first applications of potential immigrant investors, USCIS is telling journalists that the degree of financial investment in the just-concluded year was about $1.2 billion. Allow us approve that.

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Thanks for listening to me. I eagerly anticipate your comments and concerns. [The prepared declaration of David North looks like a submission for the record.] Chairman Leahy. Thank you. Our following witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's migration practice group.

Divine offered as Principal Advice of the USA Citizenship and Migration Providers from July 2004 until November 2006, the year in which he was Acting Director, and afterwards Acting Replacement Supervisor. He has actually functioned thoroughly with the EB-5 program in personal method. He was chosen, as I understand, vice head of state of the Association to Spend in U.S.A., the nationwide sector association of regional.


DECLARATION OF ROBERT C. DIVINE, LAWYER, 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.


At the majority of, if all 10,000 ports were utilized, it would certainly be 1 percent of the migration annually to the USA. It is not near that yet, however it is expanding and getting towards that. Specifically as USCIS, the firm that oversees the program, has actually been making the regulations more clear and the processes much more rational and clear for individuals that are organizing financial investments and for the investors that are spending, more individuals have wanted and able to put read more effort and money right into the process to find great jobs and create them, and after that much more capitalists have actually wanted to spend their cash and take the threat and utilize the cash to develop the jobs that is the point of the program.

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These jobs do not linger permanently, and USCIS recognizes that and are attempting to speed up the program, speed the procedure - EB5 Regional Center Program. That does not imply that they are relaxing their examination, and, in truth, they prepare to deny applications that are not certifying. And they do so, as was mentioned

The local center component of the program is not. It belongs to an appropriations bill that was enacted in 1992, and because then that program has been extended 5 times for 19 years. It is time for it to be irreversible, and it requires to be done now and not nearer to the date of expiration in September.


The process takes a great while to function up a task and after that to get the capitalists accepted. And they do not desire their cash flowing via till they have actually been approved. And the specter of the expiration of this Regional Center Program in September is currently discouraging the growth of jobs.

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I want to clarify that the Regional Center Program is not the same as the half-million-dollar thing. The idea of half a million or a million is a function of the normal EB-5 law that becomes part of the code. It simply is a reality that a lot of the local centers that are pooling financial investments have established those in places of high unemployment or in rural areas where half- million-dollar investments are permitted, which makes good sense.