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The program is positioned in a very weird and non-helpful governmental area for the excitement of worldwide investment in the United States. We are offering away too much for also little of an investment.


The local facilities, with their half-million systems, basically damaged the more practical million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they carry out in Australia, must have to do with developing organization entities, not easy investments. It ought to have to do with producing genuine tasks, not elaborate calculations about the indirect development of tasks, which is now part of the regulation.


Probably that is among the reasons it has actually stopped working year after year to get to the legal goal of 10,000 investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is as well full of middlemen, both public and personal. The program has even more than its share of detractions, which I will obtain into later if anybody is interested.


This is a company that likes to say yes to applicants, yet as the table in my testimony reveals, USCIS police officers have far more difficulty with EB-5 applications than others. I believe that is something that nobody has actually actually discussed much. EB5 Regional Center Program. There are high prices of internal denials in this program and completely factor

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Seventh, in this program visas most likely to individuals that can not get them differently and to people whose planned financial investment is really less, according to the Federal Book, than the ordinary mean total assets of all American households in 2007. Let me broaden on among my observations.


My quote based on the investors' permit applications submitted 2 years after the very first 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 price quote. USCIS does not supply the sort of information that we could utilize on this.


For every $100 of boosted foreign investment that year, the EB program added one dime. Under a far more wobbly statistical base, the preliminary applications of would-be immigrant financiers, USCIS is informing journalists that the level of financial 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 onward to your comments and concerns. [The ready statement of David North looks like a submission for the document.] Go Here 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 firm's immigration practice group.




Divine acted as Chief Advice of the USA Citizenship and Migration Services from July 2004 up until November 2006, the year in which he was Performing Director, and after that Performing Deputy Director. He has actually functioned that site thoroughly with the EB-5 program secretive practice. He was elected, as I comprehend, vice head of state of the Organization to Buy United States, the nationwide industry organization of local facilities.


Divine, we are thrilled to have you right here. Please proceed, sir. 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, Senator Grassley, and others. Thank you for having me.


At the majority of, if all 10,000 ports were made use of, it would certainly be 1 percent of the immigration every year to the United States. It is not near that yet, however it is growing and getting toward that. Particularly as USCIS, the company that manages the program, has actually been making the policies more clear and the processes a lot more reasonable and clear for the individuals who are arranging financial investments and for the capitalists who are spending, more people have been prepared and able to put effort and cash right into the procedure to find good tasks and establish them, and after that a lot more capitalists have actually agreed to spend their cash and take the danger and make use of the cash to produce the tasks that is the factor of the program.

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These jobs do not wait around permanently, and USCIS understands that and are attempting to speed the program, speed up the process - EB5 Regional Center Program. That does not mean that they are relaxing their examination, and, in reality, they are prepared to deny applications that are not certifying. And they do so, as was mentioned


The regional facility component of the program is not. It belongs to an appropriations expense that was enacted in 1992, and considering that then that program has actually been extended try here five times for 19 years. It is time for it to be irreversible, and it requires to be done now and not nearer to the date of expiry in September.


The process takes a good while to work up a task and after that to obtain the investors accepted. And they do not desire their money moving via till they have actually been accepted. And the specter of the expiry of this Regional Facility Program in September is already preventing the growth of jobs.

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I would love to clear up that the Regional Facility Program is not the exact same as the half-million-dollar thing. The concept of half a million or a million is a feature of the routine EB-5 regulation that is component of the code. It just is a fact that the majority of the local facilities that are pooling financial investments have set those instead of high unemployment or in country areas where fifty percent- million-dollar investments are permitted, which makes good sense.