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The program is put in an extremely weird and non-helpful governmental location for the stimulation of worldwide investment in the United States. We are providing away as well much for too little of a financial investment.


The local facilities, with their half-million plans, essentially damaged the more practical million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, must have to do with developing organization entities, not passive investments. It ought to have to do with developing actual work, not clarify computations concerning the indirect development of work, which is currently part of the regulation.


Perhaps that is just one of the reasons why it has stopped working every year to reach the legislative goal of 10,000 investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is also full of middlemen, both public and exclusive. The program has greater than its share of scandals, which I will obtain into later on if anybody is interested.


This is a firm that likes to state yes to candidates, but as the table in my statement reveals, USCIS officers have a lot a lot more difficulty with EB-5 applications than others. I assume that is something that nobody has actually truly discussed much. EB5 Regional Center Program. There are high rates of inner denials in this program and for good factor

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Seventh, in this program visas go to individuals who could not get them otherwise and to individuals whose scheduled financial investment is in fact much less, according to the Federal Book, than the ordinary mean web well worth of all American families in 2007. Allow me expand on among my monitorings.


My price quote based upon the capitalists' permit applications submitted 2 years after the initial investment-- these are the solid ones that stay and are accepted. This is 2009-- was that they had about $191 million confirmed-- that is my estimate. USCIS does not supply the type of data that we can use on this.


For every $100 of increased international financial investment that year, the EB program added one penny. Under a much more shaky analytical base, the preliminary applications of potential immigrant capitalists, USCIS is telling journalists that the degree of investment in the just-concluded year was about $1.2 billion. Allow us accept that.

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Thank you for paying attention to me. I eagerly anticipate your comments and inquiries. [The ready declaration of David North looks like a submission for the document.] Chairman Leahy. Thanks. 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 migration practice team.




Divine worked as Principal Guidance of the USA Citizenship and Immigration Solutions from July 2004 up until November 2006, the year in which he was Performing Director, and then Acting Deputy Director. He has functioned thoroughly with the EB-5 program in personal practice. He was elected, as I comprehend, vice head of state of the Association to Invest in United States, the national market association of local.


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


At most, if all 10,000 ports were used, it would be 1 percent of the immigration every year to the USA. It is not near that yet, however it is growing and getting toward that. Particularly as USCIS, the agency that oversees the program, has been making the policies more clear and the procedures extra rational and clear for individuals that are arranging investments and for the financiers who are investing, even more individuals have wanted and able to place initiative and cash right into the process to find good tasks and establish them, and afterwards a lot more financiers have actually wanted to invest their cash and take the threat and use the cash to produce the work that is the factor of the program.

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These projects do not linger forever, and USCIS understands that and are attempting to speed up the program, speed the process - EB5 Regional Center Program. That does not indicate that they are unwinding their examination, and, in fact, they prepare to deny applications that are not qualifying. And they do so, as was mentioned


The local facility more info component of the program is not. It belongs to an appropriations expense that was established in 1992, and ever since that program has been extended 5 times for 19 years. It is time for it to be long-term, and it needs to be done now and not nearer to the day of expiry in September.


The process takes a great while to develop a task and after that to get the financiers approved. And they do not want their money streaming through till they have been authorized. And the specter of the expiration of this Regional Center Program in September is currently preventing the growth of jobs.

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I would like to clear up that the Regional Center Program is not the like the half-million-dollar thing. The idea of half a million or a million is a function of the normal EB-5 regulation that belongs to the code. It just is a fact that many of the local centers that are pooling investments have actually established those in places of high joblessness or in rural locations where fifty percent- million-dollar investments are permitted, and that makes good sense.