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The program is positioned in a very weird and non-helpful bureaucratic area for the stimulation of international investment in the United States. We are giving away as well much for too tiny of a financial investment.


The regional facilities, with their half-million plans, basically undercut the a lot more 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, should be concerning creating company entities, not passive financial investments. It must have to do with creating genuine work, not clarify estimations about the indirect creation of work, which is now component of the legislation.


Perhaps that is among the factors why it has actually failed year after year to get to the legal goal of 10,000 investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is as well loaded with intermediaries, both public and personal. The program has greater than its share of detractions, which I will certainly enter later on if anyone is interested.


This is a company that loves to say yes to applicants, but as the table in my testament shows, USCIS police officers have far more trouble with EB-5 applications than others. I assume that is something that nobody has actually actually spoken around a lot. EB5 Regional Center Program. There are high rates of interior rejections in this program and forever factor

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Seventh, in this program visas go to people who might not obtain them any other method and to people whose organized financial investment is really much less, according to the Federal Reserve, than the ordinary mean total assets of all American families in 2007. Allow me broaden on one of my monitorings.


My price quote based upon the capitalists' permit applications filed 2 years after the initial financial investment-- these are the strong ones that remain and are approved. This is 2009-- was that they had regarding $191 million validated-- that is my estimate. USCIS does not offer the type of information that we might utilize on this.


So for every single $100 of boosted foreign investment that year, the EB program contributed one penny. Under a much a lot more shaky analytical base, the preliminary applications of potential immigrant capitalists, USCIS is informing reporters that the level of investment in the just-concluded year was about $1.2 billion. Allow us accept that.

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Thank you for listening to me. I look onward to your remarks and concerns. [The ready statement of David North appears 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 company's immigration method group.




Divine offered as Chief Advise of the United States Citizenship and Migration Providers from July 2004 until November 2006, the year in which he was Performing Director, and after that Acting Deputy Supervisor. He has worked extensively with the EB-5 program secretive practice. He was elected, as I understand, vice head of state of the Organization to Spend more info in U.S.A., the nationwide sector organization of local.


STATEMENT 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 the majority of, if all 10,000 slots were utilized, it would certainly be 1 percent of the immigration annually to the USA. It is not near that yet, yet it is growing and obtaining toward that. Specifically as USCIS, the firm that oversees the program, has been making the guidelines more clear and the procedures a lot more logical and clear for the individuals that are organizing financial investments and for the capitalists who are investing, more individuals have been eager and able to put effort and cash into the process to discover great tasks and develop them, and then extra capitalists have agreed to invest their cash and take the danger and use the cash to produce the jobs that is the factor of the program.

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These jobs do not wait about permanently, and USCIS understands that and are attempting to speed up the program, speed the process - EB5 Regional Center Program. That does not suggest that they are relaxing their analysis, and, as a matter of fact, they are all set to deny applications that are not qualifying. And they do so, as was discussed


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 expanded 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 process takes a good while to work up a project and after that to get the investors accepted. And they do not desire their cash streaming through until they have been authorized. And the specter of the expiry of this Regional Facility Program in September is currently dissuading the development of projects.

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I would love to clear up 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 legislation that belongs to the code. It simply is a fact that the majority 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 feeling.