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The program is placed in a very weird and non-helpful governmental area for the excitement of international financial investment in the United States. We are providing away as well much for too small of an investment.


The regional centers, with their half-million systems, basically damaged the much more practical million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they carry out in Australia, ought to have to do with producing organization entities, not easy investments. It ought to have to do with producing real work, not clarify calculations about the indirect development of work, which is now component of the legislation.


Perhaps that is just one of the reasons why it has failed year after year to reach the legislative goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is as well loaded with middlemen, both public and personal. The program has more than its share of rumors, which I will certainly enter later on if anybody is interested.


This is a company that loves to claim yes to applicants, but as the table in my testament reveals, USCIS officers have far more trouble with EB-5 applications than others. I assume that is something that nobody has actually truly talked around a lot. EB5 Regional Center Program. There are high prices of interior denials in this program and permanently reason

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Seventh, in this program visas go to individuals that can not get them otherwise and to people whose scheduled investment is in fact less, according to the Federal Reserve, than the typical mean total assets of all American households in 2007. Allow me expand on one of my monitorings.


My estimate based on the capitalists' permit applications filed 2 years after the first investment-- these are the strong ones that stay and are approved. This is 2009-- was that they had about $191 million verified-- that is my price quote. USCIS does not provide the kind of data that we could use on this.


So for every single $100 of increased international investment that year, the EB program contributed one cent. Under a much a lot more wobbly statistical base, the initial applications of potential immigrant financiers, USCIS is informing journalists that the degree of investment in the just-concluded year was about $1.2 billion. Let us approve that.

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Thanks for listening to me. I expect your remarks and questions. [The ready declaration of David North appears as a submission for the document.] Chairman Leahy. Thank you. Our next witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's migration practice group.




Divine worked as Chief Advise of the United States Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Performing Supervisor, and afterwards Acting Deputy Director. He has worked extensively with the EB-5 program in personal method. He was elected, as I comprehend, vice president of the Organization to Spend in USA, the national sector association of local centers.


Divine, website we are pleased to have you here. Please go on, sir. STATEMENT 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, Legislator Grassley, and others. Thanks for having me.


At many, if all 10,000 slots were made use of, it would certainly be 1 percent of the migration every year to the USA. It is not near that yet, however it is growing and obtaining towards that. Particularly as USCIS, the company that oversees the program, has actually been making the guidelines clearer and the processes more logical and clear for individuals that are arranging financial investments and for the investors that are spending, more people have been ready and able to place initiative and cash into the process to find excellent jobs and create them, and afterwards more investors have actually wanted to spend their cash and take the threat and use the cash to create the jobs that is the factor of the program.

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These tasks do not linger for life, and USCIS understands that and are attempting to speed the program, speed up the process - EB5 Regional Center Program. That does not indicate that they are relaxing their examination, and, as a matter of fact, they are prepared to refute applications that are not qualifying. And they do so, as was mentioned


The regional facility part of the program is not. It belongs to an appropriations costs that was enacted in 1992, and considering that then that program has been expanded five times for 19 years. It is time for it to be irreversible, and it needs to be done now and not nearer to the day of expiry in September.


The process takes a good while to function up a project and afterwards to get the investors accepted. And they do not desire their cash flowing with till they have been approved. And the specter of the expiration of this Regional Facility Program in September is already dissuading the development of tasks.

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I wish to clear up that the Regional Facility Program is not the very same as the half-million-dollar thing. The idea of half a million or a million is a feature of the routine EB-5 legislation that belongs to the code. It just is a fact that a lot of the local centers that are merging financial investments have actually established those in areas of high unemployment or in country areas where half- million-dollar financial investments are allowed, which makes sense.