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The program is put in a really odd and non-helpful bureaucratic location for the stimulation of international investment in the United States. We are offering away too much for as well little of an investment.


The local facilities, with their half-million systems, essentially damaged the extra practical million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, must be concerning creating company entities, not easy investments. It needs to be regarding developing actual jobs, not clarify estimations about the indirect production of jobs, which is now component of the regulations.


Perhaps that is just one of the reasons it has fallen short year after year to reach the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is too full of intermediaries, both public and exclusive. The program has even more than its share of rumors, which I will certainly get involved in later if any person is interested.


This is an agency that likes to claim yes to candidates, yet as the table in my statement reveals, USCIS policemans have a lot more trouble with EB-5 applications than others. I believe that is something that nobody has actually truly discussed much. EB5 Regional Center Program. There are high rates of inner denials in this program and permanently reason

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Seventh, in this program visas most likely to individuals who might not get them any kind of various other means and to individuals whose organized investment is actually much less, according to the Federal Book, than the typical mean internet worth of all American families in 2007. Let me expand on among my monitorings.


My quote based upon the capitalists' permit applications submitted 2 years after the very first investment-- these are the strong ones that stay and are authorized. This is 2009-- was that they had regarding $191 million confirmed-- that is my price quote. USCIS does not offer the sort of information that we could utilize on this.


So for every single $100 of raised foreign investment that year, the EB program added one cent. Under a much a lot more shaky analytical base, the first applications of potential immigrant investors, USCIS is telling reporters that the degree of financial investment in the just-concluded year had pop over to these guys to do with $1.2 billion. Let us accept that.

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Thank you for listening to me. I expect your remarks and questions. [The prepared declaration of David North shows up as a submission for the document.] Chairman Leahy. Thanks. Our next witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's immigration method group.




Divine offered as Chief Advice of the USA Citizenship and Immigration Solutions from July 2004 until November 2006, the year in which he was Acting Director, and afterwards Performing Deputy Director. He has actually worked thoroughly with the EB-5 program secretive technique. He was chosen, as I understand, vice head of state of the Association to Purchase USA, the national industry association of local facilities.


STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At a lot of, if all 10,000 slots were made use of, it would be 1 percent of the migration every year to the United States. It is not near that yet, but it is growing and obtaining toward that. Particularly as USCIS, the agency that oversees the program, has been making the guidelines clearer and the procedures much more sensible and clear for the people who are arranging investments and for the financiers who are spending, more people have agreed and able to place effort and money right into the procedure to discover excellent projects and develop them, and afterwards more capitalists have actually been prepared to invest their cash and take the risk and make use of the money to develop the jobs that is the point of the program.

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These tasks do not wait about permanently, and USCIS understands that and are trying to speed the program, speed the process - EB5 Regional Center Program. That does not imply that Recommended Reading they are relaxing their scrutiny, and, in reality, they prepare to deny applications that are not certifying. And they do so, as was mentioned


The regional center part of the program is not. It is component of an appropriations expense investigate this site that was established in 1992, and ever since that program has actually been prolonged five times for 19 years. It is time for it to be permanent, and it requires to be done now and not nearer to the date of expiry in September.


The process takes a great while to function up a project and after that to obtain the investors authorized. And they do not want their money flowing with until they have been accepted. And the specter of the expiration of this Regional Center Program in September is currently preventing the growth of jobs.

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I want to clear up that the Regional Center Program is not the same as the half-million-dollar thing. The concept of half a million or a million is a feature of the regular EB-5 legislation that belongs to the code. It simply is a fact that the majority of the regional centers that are pooling investments have actually established those in areas of high unemployment or in backwoods where fifty percent- million-dollar investments are enabled, and that makes good sense.