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The program is put in a really strange and non-helpful governmental location for the excitement of global financial investment in the United States. We are offering away also much for also little of an investment.


The regional facilities, with their half-million systems, essentially undercut the a lot more practical million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, ought to be regarding developing company entities, not passive financial investments. It needs to have to do with developing real tasks, not specify computations about the indirect creation of jobs, which is currently part of the legislation.


Possibly that is just one of the reasons that it has failed year after year to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is also loaded with middlemen, both public and private. The program has more than its share of detractions, which I will certainly enter later on if any person is interested.


This is a company that likes to say yes to candidates, but as the table in my statement shows, USCIS officers have much more problem with EB-5 applications than others. I assume that is something that no one has actually truly spoken around a lot. EB5 Regional Center Program. There are high prices of interior denials in this program and for good factor

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Seventh, in this program visas most likely to individuals who can not get them differently and to people whose organized investment is in fact much less, according to the Federal Book, than the average mean total assets of all American families in 2007. Let me broaden on among my monitorings.


My estimate based on the capitalists' eco-friendly card applications submitted 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 price quote. USCIS does not provide the type of data that we can utilize on this.


So for every single $100 of raised foreign financial investment that year, the EB program added one penny. Under a far more wobbly statistical base, the preliminary applications of prospective immigrant capitalists, USCIS is telling journalists that the see this page degree of investment in the just-concluded year was regarding $1.2 billion. Allow us approve that.

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Thank you for listening to me. I look ahead to your remarks and inquiries. [The prepared statement of David North shows up as an entry for the record.] Chairman Leahy. Thank you. Our following witness is Recommended Reading Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's immigration practice team.




Divine offered as Chief Advise of the United States Citizenship and Migration Providers from July 2004 up until November 2006, the year in which he was Acting Director, and after that Performing Replacement Supervisor. He has actually worked thoroughly with the EB-5 program secretive method. He was elected, as I comprehend, vice head of state of the Association to Buy U.S.A., the national industry association of regional facilities.


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.


At the majority of, if all 10,000 slots were made use of, it would certainly be 1 percent of the migration yearly to the USA. It is not near that yet, however it is expanding and obtaining toward that. Specifically as USCIS, the company that oversees the program, has been making the guidelines clearer and the processes much more reasonable and clear for individuals that are arranging financial investments and for the financiers who are spending, more people have agreed and able to this content place initiative and cash right into the process to discover excellent jobs and create them, and after that a lot more financiers have been prepared to invest their money and take the risk and make use of the cash to develop the jobs that is the factor of the program.

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These tasks do not wait around for life, and USCIS recognizes that and are attempting to speed up the program, speed the procedure - EB5 Regional Center Program. That does not imply that they are unwinding their examination, and, in reality, they prepare to deny applications that are not certifying. And they do so, as was pointed out


The regional facility part of the program is not. It becomes part of an appropriations expense that was established in 1992, and ever since that program has actually been extended five times for 19 years. It is time for it to be irreversible, and it needs to be done currently and not nearer to the day of expiration in September.


The procedure takes an excellent while to develop a task and then to get the capitalists approved. And they do not desire their money moving through up until they have been authorized. And the specter of the expiration of this Regional Facility Program in September is already dissuading the advancement of tasks.

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I want to make clear that the Regional Facility Program is not the same as the half-million-dollar thing. The idea of half a million or a million is a function of the routine EB-5 law that becomes part of the code. It simply is a truth that a lot of the regional centers that are pooling financial investments have actually set those instead of high joblessness or in backwoods where fifty percent- million-dollar investments are permitted, and that makes good sense.