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The program is positioned in an extremely weird and non-helpful governmental place for the excitement of international financial investment in the United States. We are providing away too much for also tiny of an investment.


The regional centers, with their half-million plans, essentially undercut the more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, ought to have to do with developing organization entities, not passive investments. It needs to be concerning developing real tasks, not clarify calculations about the indirect creation of tasks, which is currently component of the regulation.


Probably that is just one of the reasons it has failed year after year to reach the legislative goal of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is also filled up with middlemen, both public and exclusive. The program has greater than its share of rumors, which I will certainly enter later on if any person is interested.


This is a company that likes to claim yes to candidates, but as the table in my testimony reveals, USCIS officers have far more difficulty with EB-5 applications than others. I think that is something that nobody has truly chatted about much. EB5 Regional Center Program. There are high rates of inner rejections in this program and permanently factor

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Seventh, in this program visas go to individuals that could not obtain them any type of other way and to people whose scheduled financial investment is in fact less, according to the Federal Get, than the average mean web well worth of all American households in 2007. Let me expand on one of my observations.


My estimate based upon the investors' copyright applications submitted 2 years after the first investment-- these are the strong ones that remain and are authorized. This is 2009-- was that they had about $191 million confirmed-- that is my estimate. USCIS does not give the kind of information that we could use on this.


For every $100 of increased foreign financial investment that year, the EB program contributed one dime. Under a far more unsteady analytical base, the first applications of potential immigrant financiers, USCIS is telling reporters that the level of financial investment in the just-concluded year was concerning $1.2 billion. Allow us approve that.

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Thank you for listening to me. I look onward to your remarks and inquiries. [The ready statement of David North appears as an entry for the document.] Chairman Leahy. Thank you. 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 practice team.




Divine acted as Principal Advice site link of the United States Citizenship and Immigration Providers from July 2004 up until November 2006, the year in which he was Performing Supervisor, and after that Performing Replacement Director. He has actually worked extensively with the EB-5 program secretive practice. He was elected, as I recognize, vice president of the Organization to Spend in USA, the nationwide sector association of regional facilities.


DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE United States (IIUSA) Mr. Divine. Thank you, Mr. look at more info Chairman, Legislator Grassley, and others.


At a lot of, if all 10,000 slots were made use of, it would certainly be 1 percent of the immigration yearly to the USA. It is not near that yet, but it is growing and getting towards that. Particularly as USCIS, the company that supervises the program, has been making the rules more clear and the procedures extra reasonable and clear for individuals that are arranging investments and for the financiers who are spending, more individuals have actually wanted and able to put effort and money right into the procedure to discover great tasks and establish them, and after that much more capitalists have actually wanted to invest their money and take the risk and use the cash to develop the work that is the point of the program.

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These tasks do not wait about for life, and USCIS understands that and are attempting to speed the program, speed the procedure - EB5 Regional Center Program. That does not imply that they are relaxing their analysis, and, actually, they prepare to deny applications that are not certifying. And they do so, as was stated


The local facility part of the program is not. It belongs to an appropriations costs that was established in 1992, and ever since that program has been extended five times for 19 years. It is time for it to be irreversible, and it needs to be done currently and not Your Domain Name nearer to the date of expiry in September.


The procedure takes a great while to develop a task and then to get the capitalists approved. And they do not desire their cash moving via until they have been authorized. And the specter of the expiration of this Regional Facility Program in September is currently dissuading the growth of jobs.

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I would love to make clear that the Regional Facility Program is not the like the half-million-dollar point. The concept of half a million or a million is a function of the routine EB-5 legislation that becomes part of the code. It just is a fact that a lot of the local facilities that are merging investments have actually set those instead of high unemployment or in backwoods where half- million-dollar financial investments are allowed, and that makes sense.