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The program is positioned in a very weird and non-helpful administrative area for the excitement of worldwide financial investment in the United States. We are giving away as well much for as well small of an investment.


The regional centers, with their half-million systems, basically damaged the a lot more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, should have to do with producing business entities, not easy financial investments. It ought to be about producing actual tasks, not clarify estimations concerning the indirect production of work, which is currently part of the regulations.


Maybe that is among the reasons that it has fallen short time after time to reach the legal objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is as well filled with intermediaries, both public and exclusive. The program has even more than its share of detractions, which I will certainly obtain into later if any person is interested.


This is a company that loves to claim yes to applicants, but as the table in my testament reveals, USCIS police officers have a lot a lot more trouble with EB-5 applications than others. I believe that is something that no one has truly discussed much. EB5 Regional Center Program. There are high prices of interior rejections in this program and forever factor

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Seventh, in this program visas most likely to people who could not get them differently and to individuals whose organized financial investment is actually much less, according to the Federal Get, than the average mean net worth of all American households in 2007. Allow me broaden on one of my monitorings.


My estimate based upon the investors' permit applications filed 2 years after the initial investment-- these are the solid ones that remain and are approved. This is 2009-- was that they had regarding $191 million verified-- that is my estimate. USCIS does not offer the sort of information that we can use on this.


For every $100 of enhanced international investment that year, the EB program contributed one dime. Under a far more shaky statistical base, the preliminary applications of potential immigrant investors, USCIS is informing journalists that the level of financial investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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Thanks for paying attention to me. I look ahead to your remarks and inquiries. [The prepared declaration of David North appears as an entry for the document.] Chairman Leahy. Thank you. Our following witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's immigration technique team.




Divine functioned as Principal Advise of the United States Citizenship and Migration Providers from July 2004 till November 2006, the year in which he was Performing Director, and after that Performing Deputy Director. He has worked thoroughly with the EB-5 program in private technique. He was elected, as I comprehend, vice head of state of the Organization to Purchase United States, the nationwide industry organization of regional centers.


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


At many, if all 10,000 ports were made use here of, it would certainly be 1 percent of the migration yearly to the USA. It is not near that yet, but it is growing and getting toward that. Specifically as USCIS, the firm that oversees the program, has been making the guidelines more clear and the processes more logical and clear for individuals who are arranging investments and for the capitalists who are spending, even more individuals have been willing and able to place effort and cash into the process to find great projects and develop them, and after that much more capitalists have wanted to spend their money and take the risk and make use of 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 recognizes that and are trying to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not suggest that they are unwinding their analysis, and, actually, they prepare to deny applications that are not qualifying. And they do so, as was pointed out


The regional facility part of the program is not. It is part of an appropriations bill that was established in 1992, and since then that program has been extended 5 times for 19 years. It is time for it to be permanent, and it needs to be done currently and not nearer to the day of expiration in September.


The process takes a great while to function up a job and afterwards to obtain the investors approved. And they do not desire their cash moving via till they have actually been approved. And the specter of the expiration of this Regional Center Program in September is currently dissuading the development of projects.

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I want to clarify that the Regional Center Program is not the exact same as the half-million-dollar point. The idea of half a million or a million is a feature of the regular EB-5 law that becomes part of the code. It simply is a fact that the majority of the regional facilities that are pooling financial investments have established those in locations of high joblessness or in rural locations where half- million-dollar financial investments are enabled, which makes sense.