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The program is positioned in a really strange and non-helpful governmental location for the excitement of international investment in the United States. We are offering away as well much for also small of an investment.


The local facilities, with their half-million plans, basically damaged the extra sensible million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they carry out in Australia, ought to have to do with producing business entities, not easy investments. It must be about creating actual tasks, not elaborate computations regarding the indirect production of jobs, which is currently component of the regulations.


Maybe that is among the reasons that it has stopped working year after year to reach the legislative goal of 10,000 investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is too loaded with middlemen, both public and private. The program has greater than its share of detractions, which I will get involved in later if anyone is interested.


This is an agency that loves to state yes to candidates, but as the table in my statement reveals, USCIS police officers have a lot more trouble with EB-5 applications than others. I think that is something that no one has actually really discussed much. EB5 Regional Center Program. There are high rates of inner rejections in this program and forever factor

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Seventh, in this program visas go to individuals who might not obtain them any kind of other way and to people whose planned financial investment is in fact less, according to the Federal Get, than the typical mean total assets of all American family members in 2007. Let me expand on among my observations.


My price quote based on the investors' copyright applications submitted 2 years after the very first financial investment-- these are the solid ones that remain and are accepted. This is 2009-- was that they had regarding $191 million confirmed-- that is my quote. USCIS does not offer the sort of information that we might make use of on this.


For every $100 of raised foreign financial investment that year, the EB program added one dime. Under a much a lot more unsteady analytical base, the initial applications of would-be immigrant investors, USCIS is informing journalists that the degree of investment in the just-concluded year had to do with $1.2 billion. Let us approve that.

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Thanks for listening to me. I expect your comments and concerns. [The prepared statement of David North looks like a submission for the record.] Chairman Leahy. Thank you. Our following witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's migration method team.




Divine worked as Chief Guidance of the United States Citizenship and Migration Solutions from July 2004 up until November 2006, the year in which he was Acting Supervisor, and after that Acting Deputy Director. He has worked extensively with the EB-5 program secretive technique. He was chosen, as I recognize, vice head of state of the Organization to Invest in U.S.A., the national industry association of regional.


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


At many, if all 10,000 ports were official website utilized, it would certainly be 1 percent of the immigration each year to the United States. It is not near that yet, yet it is growing and obtaining toward that. Especially as USCIS, the agency that looks after the program, has been making the regulations clearer and the procedures much more sensible and clear for the individuals who are arranging investments and for the investors that are investing, even more individuals have been eager and able to put effort and money into the process to find great projects and create them, and afterwards a lot more investors have wanted to invest their cash and take the risk and utilize the cash to create the tasks that is the factor of the program.

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These tasks do not wait about permanently, and USCIS recognizes that and published here are attempting to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not indicate that they are unwinding their examination, and, in reality, they prepare to refute applications that are not certifying. And they do so, as was discussed


The regional facility part of the program is not. It becomes part of an appropriations costs that was established in 1992, and ever since that program has actually been prolonged 5 times for 19 years. It is time for it to be permanent, and it requires to be done currently and not nearer to the day of expiration in September.


The process takes an excellent while to function up a project and after that to obtain the financiers accepted. And they do not want their cash moving via till they have been approved. And the specter of the expiry of this Regional Facility Program in September is currently dissuading the advancement of projects.

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I want to clarify that the Regional Center Program is not the like the half-million-dollar thing. The concept of half a million visit this site right here or a million is a feature of the regular EB-5 legislation that belongs to the code. It just is a truth that a lot of the local centers that are merging investments have set those in places of high unemployment or in country locations where fifty percent- million-dollar investments are permitted, which makes good sense.