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The program is placed in a really odd and non-helpful governmental place for the excitement of international investment in the United States. We are providing away too much for too small of a financial investment.


The local facilities, with their half-million systems, essentially damaged the a lot more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they perform in Australia, ought to have to do with creating organization entities, not passive investments. It ought to have to do with developing real jobs, not specify estimations concerning the indirect creation of work, which is currently part of the regulations.


Possibly that is among the reasons it has failed year after year to get to the legal objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is too loaded with intermediaries, both public and personal. The program has even more than its share of rumors, which I will enter later on if anyone is interested.


This is a firm that loves to claim yes to applicants, however as the table in my testimony shows, USCIS policemans have a lot more difficulty with EB-5 applications than others. I think that is something that no one has actually truly discussed a lot. EB5 Regional Center Program. There are high rates of interior denials in this program and permanently factor

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Seventh, in this program visas most likely to people who could not obtain them any kind of other means and to individuals whose planned investment is actually less, according to the Federal Reserve, than the typical mean web worth of all American families in 2007. Let me expand on among my observations.


My quote based on the capitalists' permit applications filed 2 years after the first investment-- these are the strong ones that remain 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 data that we can use on this.


For every $100 of increased international financial investment that year, the EB program contributed one penny. Under a far more unsteady analytical base, the preliminary applications of potential immigrant capitalists, USCIS is telling reporters that the degree of investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thanks for paying attention to me. I anticipate your remarks and concerns. [The prepared statement of David North appears as an entry for the document.] Chairman Leahy. Thanks. Our next 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 worked as Chief Advice of the USA Citizenship and Migration Solutions from July 2004 up until November 2006, the year in which he was Acting Supervisor, and afterwards Acting Replacement Director. He has worked extensively with the EB-5 program secretive method. He was chosen, as I understand, vice president of the Organization to Spend in USA, the national industry association of local facilities.


Divine, we are thrilled to have you right here. Please go on, 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 many, if view all 10,000 ports were used, it would certainly be 1 percent of the migration each year to the United States. It is not near that yet, but it is growing and obtaining towards that. Especially as USCIS, the agency that oversees the program, has actually been making the policies clearer and the processes much more logical and clear for the people that are arranging financial investments and for the investors who are investing, even more individuals have been eager and able to place effort and cash into the procedure to locate good tasks and create them, and after that much more financiers have actually agreed to invest their money and take the danger and use the cash to develop 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 attempting to speed the program, speed up the process - EB5 Regional Center Program. That does not imply that they are unwinding their scrutiny, and, actually, they are prepared to refute applications that are not qualifying. And they do so, as was pointed out


The regional center component of the program is not. It belongs to an appropriations costs that was enacted in 1992, and considering that then that program has been prolonged 5 times for 19 years. It is time for it to be long-term, view publisher site and it requires to be done now and not nearer to the day of expiration in September.


The procedure takes an excellent while to function up a project and afterwards to obtain the investors accepted. And they do not want their cash flowing with till they have been have a peek at these guys authorized. And the specter of the expiry of this Regional Center Program in September is currently dissuading the development of jobs.

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I want to clear up that the Regional Center Program is not the like the half-million-dollar point. The idea of half a million or a million is a feature of the regular EB-5 legislation that belongs to the code. It just is a fact that many of the regional facilities that are pooling financial investments have established those in areas of high unemployment or in backwoods where fifty percent- million-dollar investments are enabled, which makes good sense.