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The program is positioned in a really strange and non-helpful governmental area for the excitement of worldwide investment in the United States. We are providing away too much for too small of an investment.


The local centers, with their half-million schemes, essentially damaged the much more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they perform in Australia, must be regarding producing service entities, not passive financial investments. It needs to have to do with creating real tasks, not clarify estimations regarding the indirect creation of tasks, which is now component of the regulation.


Maybe that is just one of the reasons that it has actually failed year after year to get to the legislative goal of 10,000 investment visas. Fifth, the Regional Facility Program is inherently clumsy, 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 get involved in later on if anyone is interested.


This is an agency that loves to say yes to candidates, however as the table in my testament reveals, USCIS officers have a lot more trouble with EB-5 applications than others. I assume that is something that nobody has really spoken about a lot. EB5 Regional Center Program. There are high prices of inner rejections in this program and completely reason

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Seventh, in this program visas go to people who can not get them any type of other means and to individuals whose organized financial investment is actually much less, according to the Federal Reserve, than the typical mean total assets of all American households in 2007. Allow me increase on one of my monitorings.


My quote based upon the investors' permit applications filed 2 years after the very first financial investment-- these are the solid ones that continue to be and are accepted. This is 2009-- was that they had about $191 million verified-- that is my price quote. USCIS does not offer the kind of data that we might use on this.


So for each $100 of increased foreign investment that year, the EB program added one cent. Under a much more unsteady analytical base, the first applications of would-be immigrant capitalists, USCIS is informing journalists that the degree of financial investment in the just-concluded year was regarding $1.2 billion. Allow us approve that.

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Thanks for paying attention to me. I anticipate your remarks and questions. [The prepared declaration 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 company's migration method team.




Divine functioned as Chief Advice of the USA Citizenship and Immigration Providers from July 2004 until November 2006, the year in which he was Performing Supervisor, and afterwards Performing Deputy Director. He has functioned extensively with the EB-5 program secretive practice. He was elected, as I understand, vice head of state of the Association to see here now Invest in USA, the nationwide market association of regional facilities.


STATEMENT 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 migration each year to the USA. It is not near that yet, however it is growing and getting towards that. Specifically as USCIS, the firm that manages the program, has been making the rules clearer and the processes a lot more logical and clear for the people who are arranging investments and for the financiers who are spending, even more special info individuals have agreed and able to place initiative and money right into the process to find great tasks and create them, and then more financiers have actually wanted to spend their money and take the danger and make use of the cash to create the tasks that is the point of the program.

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These projects do not wait about permanently, and USCIS comprehends that and are trying to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not indicate that they are relaxing their scrutiny, and, in fact, they prepare to refute applications that are not certifying. And they do so, as was discussed


The local center component of the program is not. It belongs to an appropriations costs that was established in 1992, and because then that program has been expanded 5 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 work up a see this task and afterwards to obtain the financiers approved. And they do not desire their cash moving via up until they have been approved. And the specter of the expiration of this Regional Facility Program in September is already inhibiting the growth of jobs.

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I want to clear up that the Regional Facility Program is not the same as the half-million-dollar point. The idea of half a million or a million is a feature of the regular EB-5 law that belongs to the code. It just is a fact that a lot of the regional facilities that are merging financial investments have actually set those in locations of high unemployment or in rural locations where half- million-dollar investments are enabled, which makes good sense.