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The program is positioned in an extremely odd and non-helpful governmental place for the excitement of worldwide investment in the United States. We are providing away too much for too little of an investment.


The local facilities, with their half-million systems, basically damaged the more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they perform in Australia, must have to do with producing service entities, not passive financial investments. It should be regarding producing genuine work, not specify calculations regarding the indirect development of tasks, which is currently component of the regulations.


Perhaps that is among the reasons that it has actually fallen short time after time to get to the legal objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is as well 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 anybody is interested.


This is a company that loves to say yes to applicants, yet as the table in my statement shows, USCIS police officers have far more trouble with EB-5 applications than others. I think that is something that nobody has actually actually chatted around much. EB5 Regional Center Program. There are high rates of inner rejections in this program and permanently reason

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Seventh, in this program visas most likely to people that could not obtain them differently and to people whose organized investment is really much less, according to the Federal Get, than the average mean web well worth of all American families in 2007. Allow me increase on one of my observations.


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


So for every single $100 of increased international investment that year, the EB program contributed one penny. Under a a lot more shaky analytical base, the initial applications of potential immigrant financiers, USCIS is informing journalists that the level of investment in the just-concluded year had to do with $1.2 billion. Let us accept that.

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Thank you for paying attention to me. I eagerly anticipate your remarks and inquiries. [The ready declaration of David North looks like a submission for the record.] Chairman Leahy. Thanks. 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 Advice of the United States Citizenship and Immigration Services from July 2004 till November 2006, the year in which he was Acting Director, and after that Acting Replacement Supervisor. He has actually worked extensively with the EB-5 program secretive method. He was chosen, as I comprehend, vice head of state of the Association to Spend in USA, the national industry association of regional.


Divine, we are delighted to have you below. Please go in advance, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY THE United States (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At a lot of, if all 10,000 ports were used, it would be 1 percent of the migration yearly to the USA. It is not near that yet, however click for source it is expanding and getting towards that. Specifically as USCIS, the agency that looks after the program, has actually been making the regulations more clear and the procedures extra sensible and clear for individuals who are arranging financial investments and for the investors who are spending, more individuals have actually been ready and able to place effort and cash into the process to discover great projects and create them, and after that more financiers have actually been eager to invest their money and take the threat and use the cash to create the tasks that is the factor of the program.

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These jobs do not wait around forever, and USCIS understands that and are trying to speed the program, speed up the process - EB5 Regional Center Program. That does not imply that they are relaxing their examination, and, as a matter of fact, they are prepared to deny applications that are not qualifying. And they do so, as was discussed


The local facility part of the program is not. It is part of an appropriations bill that was established in 1992, and since then that program has been extended 5 times for 19 years. It is time for it to be long-term, and it requires to be done now and not nearer to the date of expiration in September.


The procedure takes a good while to work up a job and after that to obtain the financiers accepted. And they do not want their money streaming with up until they have actually been approved. And the specter of the expiration of this Regional why not find out more Center Program in September is already discouraging the growth of tasks.

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I would like 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 function of the normal EB-5 regulation that is component of the code. It simply is a reality that a lot of the local facilities that are merging investments have established those instead of my sources high unemployment or in country locations where half- million-dollar investments are allowed, which makes good sense.