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Initially, the program is put in an extremely strange and non-helpful administrative area for the stimulation of worldwide investment in the USA. Second, its range is all incorrect. We are giving away way too much for as well tiny of a financial investment. Additionally, raising financial backing half a million bucks a tranche is, to say the least, inefficient.

The local centers, with their half-million systems, basically undercut the extra practical million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they carry out in Australia, ought to have to do with creating service entities, not passive financial investments. It must be concerning producing genuine work, not elaborate estimations about the indirect production of jobs, which is currently component of the legislation.

Perhaps that is among the reasons that it has fallen short every year to get to the legislative goal of 10,000 investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is also full of intermediaries, both public and private. The program has even more than its share of rumors, which I will enter later if any person is interested.

This is an agency that likes to say yes to applicants, however as the table in my testament reveals, USCIS police officers have far more problem with EB-5 applications than others. I assume that is something that nobody has truly chatted around a lot. EB5 Regional Center Program. There are high rates of internal denials in this program and permanently reason

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Seventh, in this program visas go to people who could not obtain them differently and to people whose scheduled financial investment is actually much less, according to the Federal Reserve, than the ordinary mean web well worth of all American households in 2007. Allow me expand on among my monitorings.

My price quote based on the financiers' permit applications filed 2 years after the first investment-- these are the strong ones that stay and are authorized. This is 2009-- was that they had about $191 million confirmed-- that is my price quote. USCIS does not give the type of data that we could make use of on this.

For every $100 of enhanced international investment that year, the EB program contributed one penny. Under a a lot more unsteady statistical base, the first applications of potential immigrant financiers, USCIS is informing reporters that the level of financial investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thank you for listening to me. I look onward to your remarks and questions. [The prepared statement of David North shows up as 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 immigration practice group.


Divine offered as Chief Advise of the United States Citizenship and Migration Solutions from July 2004 up until November 2006, the year in which he was Acting Supervisor, and after that Performing Deputy Supervisor. He has functioned extensively with the EB-5 program in exclusive method. He was chosen, as I recognize, vice president of the Association to Invest in U.S.A., the nationwide sector association of regional.

Divine, we are thrilled to look at this website have you below. Please go ahead, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thank you for having me.

At many, if all 10,000 slots were made use of, it would certainly be 1 percent of the immigration each year to the USA. It is not near that yet, but it is expanding and obtaining towards that. Specifically as USCIS, the agency that oversees the program, has been making the guidelines more clear and the procedures more sensible and clear for individuals who are arranging financial investments and see this site for the investors who are investing, more people have agreed and able to place initiative and cash into the process to find excellent projects and establish them, and then more investors have actually been willing to spend their money and take the threat and make use of the money to create the jobs that is the point of the program.

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These jobs do not linger for life, and USCIS understands that and are attempting to speed the program, speed up the process - EB5 Regional Center Program. That does not suggest that they are unwinding their scrutiny, and, in fact, they are all set to refute applications that are not qualifying. And they do so, as was discussed

The regional center part of the program is not. It becomes part of an appropriations bill that was passed in 1992, and given that then that program has actually been extended five times for 19 years. It is time for it to be long-term, and it requires to be done currently and not nearer to the date of expiration in September.

The procedure takes an excellent while to function up a job and after that to get the financiers accepted. And they do not want their money flowing through up until they have actually been accepted. And the specter of the expiry of this Regional Center Program in September is currently discouraging the advancement of tasks.

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I would certainly such useful reference as to clear up that the Regional Center Program is not the like the half-million-dollar thing. The idea of half a million or a million is a feature of the normal EB-5 regulation that belongs to the code. It just is a fact that the majority of the local facilities that are merging investments have actually established those in areas of high joblessness or in backwoods where half- million-dollar financial investments are permitted, and that makes good sense.

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