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

The local facilities, with their half-million systems, basically undercut the more practical million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, need to have to do with creating business entities, not easy investments. It ought to be regarding producing genuine jobs, not specify estimations regarding the indirect creation of work, which is currently part of the regulation.


Maybe that is one of the reasons that it has fallen short time after time to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is also full of middlemen, both public and exclusive. The program has even more than its share of scandals, which I will certainly get involved in later if any person is interested.


This is a company that enjoys to say yes to candidates, but as the table in my statement reveals, USCIS officers have a lot more difficulty with EB-5 applications than others. I assume that is something that nobody has actually actually discussed a lot. EB5 Regional Center Program. There are high prices of internal denials in this program and completely reason

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Seventh, in this program visas most likely to individuals who could not obtain them any other method and to people whose organized financial investment is in fact much less, according to the Federal Get, than the ordinary mean internet well worth of all American households in 2007. Allow me broaden on one of my observations.


My estimate based on the investors' permit applications filed 2 years after the initial financial investment-- these are the strong ones that stay and are authorized. This is 2009-- was that they had regarding $191 million confirmed-- that is my estimate. USCIS does not provide the kind of data that we could use on this.


So for every $100 of increased international financial investment that year, the EB program added one cent. Under a much extra wobbly statistical base, the first applications of prospective immigrant financiers, USCIS is telling reporters that the degree of investment in the just-concluded year was about $1.2 billion. Allow us approve that.

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Thanks for listening to me. I expect your remarks and questions. [The prepared declaration of David North shows up as an entry for the record.] 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 firm's immigration method team.

Divine functioned as Principal Advice of the United States Citizenship and Immigration Providers from July 2004 till November 2006, the year in which check this he was Acting Director, and afterwards Performing Deputy Supervisor. He has actually functioned extensively with the EB-5 program in private technique. He was elected, as I recognize, vice head of state of the Association to Spend in U.S.A., the nationwide market association of local.


DECLARATION 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 the majority of, if all 10,000 ports were used, it would certainly be 1 percent of the immigration each year to the USA. It is not near that yet, but it is expanding and getting towards that. Especially as USCIS, the firm that manages the program, has been making the policies more clear and the processes extra logical and clear for individuals who are organizing financial investments and for the investors that are spending, more individuals have actually been prepared and able to place initiative and money right into the process to discover great projects and establish them, and after that more financiers have actually agreed to invest their cash and take the threat and use the money to develop the work that is the point of the program.

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These projects do not linger forever, and USCIS comprehends that and are trying to speed the program, speed the procedure - EB5 Regional Center Program. That does not mean that they are unwinding their analysis, and, actually, they prepare to refute applications that are not certifying. And they do so, as Source was mentioned

The local center component of the program is not. It becomes part of an appropriations costs that was passed in 1992, and ever since that program has actually been prolonged 5 times for 19 years. It is time for it to be long-term, and it requires to be done now and not nearer to the day of expiration in September.


The procedure takes a good while to function up a project and after that to obtain the financiers accepted. And they do not want their cash flowing via until they have actually been approved. And the specter of the expiration of this Regional Facility Program in September is already inhibiting the advancement of tasks.

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I wish to clear up from this source that the Regional Center Program is not the like the half-million-dollar point. The concept of half a million or a million is a feature of the regular EB-5 law that is part of the code. It just is a truth that the majority of the local facilities that are merging investments have set those instead of high unemployment or in rural locations where fifty percent- million-dollar financial investments are permitted, and that makes feeling.