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The program is placed in a really odd and non-helpful governmental place for the stimulation of global financial investment in the United States. Second, its range is all wrong. We are distributing way too much for also little of an investment. Better, increasing financial backing fifty percent a million bucks a tranche is, to say the least, ineffective.


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The local facilities, with their half-million schemes, essentially undercut the much more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they do in Australia, ought to have to do with producing service entities, not passive investments. It ought to have to do with creating actual jobs, not specify estimations concerning the indirect development of tasks, which is currently part of the legislation.


Perhaps that is one of the reasons it has failed year after year to reach the legislative goal of 10,000 investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is too filled up with middlemen, both public and private. The program has greater than its share of rumors, which I will certainly enter later on if anyone is interested.


This is an agency that enjoys to claim yes to candidates, however as the table in my testimony shows, USCIS police officers have a lot more difficulty with EB-5 applications than others. I believe that is something that nobody has actually spoken about much. EB5 Regional Center Program. There are high rates of internal denials in this program and forever reason


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Seventh, in this program visas go to people that could not obtain them any various other way and to people whose organized investment is really much less, according to the Federal Reserve, than the ordinary mean net well worth of all American families in 2007. Let me increase on one of my monitorings.


My estimate based upon the investors' permit applications submitted 2 years after the first investment-- these are the strong ones that continue to be and are accepted. This is 2009-- was that they had about $191 million validated-- that is my price quote. USCIS does not offer the sort of information that we could utilize on this.


So for every $100 of raised foreign investment that year, the EB program contributed one dime. Under a a lot more wobbly analytical base, the first applications of prospective immigrant financiers, USCIS is informing reporters that the degree of 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 anticipate your remarks and questions. [The ready declaration of David North shows up as an entry 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 company's immigration practice team.


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Divine functioned as Chief Guidance of the United States Citizenship and Migration Providers from July 2004 till November 2006, the year in which he was Performing Supervisor, and after that Performing Deputy Supervisor. He has actually worked extensively with the EB-5 program in personal method. He was elected, as I understand, vice president of the Association to Invest in United States, the national sector organization of regional centers.


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 most, if all 10,000 slots 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 getting towards that. Specifically as USCIS, the agency that supervises the program, has actually been making the policies more clear and the processes a lot more reasonable and clear for individuals that are organizing financial investments and for the capitalists that are spending, even more individuals have been willing and able to put initiative and money right into the procedure to locate great projects and develop them, and after that extra capitalists have actually agreed to invest their money and take the risk and utilize the cash to produce the tasks that is the factor of the program.


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These tasks do not wait around for life, and USCIS comprehends that and are trying to speed the program, speed up the procedure - EB5 Regional Center Program. That does not imply that they are relaxing their analysis, and, as a matter of fact, they are ready to reject applications that are not certifying. And they do so, as was mentioned


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The regional facility part of the program is not. It belongs to an appropriations bill that was passed in 1992, and since then that program has actually been prolonged five times for 19 years. It is time for it to be permanent, and click here it requires to be done currently and not nearer to the date of expiration in September.


The process takes a great while to function up a job and after that to get the capitalists 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 Center Program in September is currently preventing the development of projects.


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I want to make clear that the Regional Facility Program is not the same as the half-million-dollar thing. 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 most of the local centers that are merging investments have actually established those in places of high joblessness or in backwoods where fifty percent- million-dollar financial investments are allowed, and that makes good sense.

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