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The program is positioned in a really odd and non-helpful administrative place for the excitement of international investment in the United States. We are giving away also much for also small of an investment.


The local centers, with their half-million schemes, essentially undercut the much more practical million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they perform in Australia, ought to have to do with creating business entities, not passive investments. It must have to do with producing real jobs, not specify estimations regarding the indirect development of jobs, which is currently part of the legislation.


Possibly that is one of the reasons why it has actually failed year after year to reach the legislative goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is as well filled up with intermediaries, both public and personal. The program has even more than its share of scandals, which I will obtain into later on if anyone is interested.


This is a company that loves to claim yes to candidates, yet as the table in my statement shows, USCIS officers have a lot a lot more difficulty with EB-5 applications than others. I think that is something that nobody has actually actually chatted around much. EB5 Regional Center Program. There are high prices of internal denials in this program and forever factor

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Seventh, in this program visas most likely to individuals that can not obtain them otherwise and to people whose scheduled financial investment is in fact less, according to the Federal Get, than the average mean web worth of all American families in 2007. Allow me increase on one of my observations.


My price quote based upon the financiers' permit applications filed 2 years after the initial financial investment-- these are the solid ones that continue to be and are authorized. This is 2009-- was that they had concerning $191 million confirmed-- that is my price quote. USCIS does not supply the kind of information that we could utilize on this.


For every $100 of boosted international investment that year, the EB program contributed one dime. Under a a lot more shaky statistical base, the preliminary applications of prospective immigrant financiers, 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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Thank you for paying attention to me. I look ahead to your remarks and inquiries. [The prepared declaration of David North looks like a submission for the document.] Chairman Leahy. Thanks. 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 practice group.




Divine acted as Principal Counsel of the United States Citizenship and Migration Services from July 2004 until November 2006, the year in which he was Acting Director, and after that Performing Replacement Supervisor. He has actually functioned thoroughly with the EB-5 program in personal method. He was elected, as I comprehend, vice head of state of the Organization to Spend in United States, the national market association of regional.


Divine, we are delighted to have you right here. Please go on, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, 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. Thanks for having me.


At a lot of, if all 10,000 ports were utilized, it would be 1 percent of the immigration annually to the United States. It is not near that yet, but it is growing and getting toward web that. Particularly as USCIS, the company that supervises the program, has been making the guidelines clearer and the processes much more rational and clear for the people that are arranging financial investments and for the financiers who are investing, even more individuals have agreed and able to put effort and cash right into the process to find great jobs and develop them, and then extra capitalists have actually agreed to invest their money and take the threat and use the cash to create the tasks that is the point of the program.

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These tasks do not wait about forever, and USCIS recognizes that and are trying to speed up the program, speed the procedure - EB5 Regional Center Program. That does not indicate that they are relaxing their analysis, and, in reality, they are prepared to deny applications that are not qualifying. And they do so, as was discussed


The regional center 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 long-term, and it needs to be done now and not nearer to the date of expiration in September.


The process takes a good while to function up a project and then to obtain the investors accepted. And they do not desire their cash streaming with till they have actually been accepted. And the specter of the expiry of this Regional Center Program in September is already discouraging the advancement of jobs.

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I want to clarify that the Regional Facility Program is not the same as the half-million-dollar point. The concept of half a million or a million is a function of the normal EB-5 law that is part of the code. It simply is a reality you can check here that a lot of the regional facilities that are pooling financial investments have set those in areas of high unemployment or in country locations where half- million-dollar financial investments are visit our website enabled, and that makes feeling.