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The program is positioned in a really weird and non-helpful administrative place for the excitement of worldwide investment in the United States. We are providing away too much for also little of an investment.


The regional facilities, with their half-million systems, essentially undercut the extra practical million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they perform in Australia, should be concerning creating service entities, not passive financial investments. It needs to be regarding developing genuine work, not clarify estimations about the indirect development of work, which is now component of the regulations.


Perhaps that is among the reasons it has actually stopped working time after time to get to the legislative objective of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is also loaded with intermediaries, both public and personal. The program has even more than its share of detractions, which I will enter into later on if any person is interested.


This is a company that likes to say yes to applicants, yet as the table in my testament shows, USCIS police officers have far more trouble with EB-5 applications than others. I believe that is something that no one has actually actually discussed much. EB5 Regional Center Program. There are high rates of internal denials in this program and for great factor

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Seventh, in this program visas go to individuals that could not get them differently and to people whose scheduled investment is actually much less, according to the Federal Get, than the typical mean total assets of all American families in 2007. Allow me broaden on one of my observations.


My estimate based upon the financiers' eco-friendly card applications submitted 2 years after the first financial investment-- these are the strong ones that continue to be and are accepted. This is 2009-- was that they had concerning $191 million validated-- that is my quote. USCIS does not offer the kind of information that we could use on this.


So for each $100 of increased foreign financial investment that year, the EB program contributed one dime. Under a a lot more shaky statistical base, the initial applications of potential immigrant investors, USCIS is informing journalists that the degree of investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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Thank you for paying attention to me. I look onward to your remarks and concerns. [The prepared declaration of David North looks like a submission for the record.] Chairman Leahy. Thank you. Our next witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's immigration practice group.




Divine offered as Chief Advise of the United States Citizenship and Immigration Providers from July 2004 up until November 2006, the year in which he was Performing Supervisor, and after that Acting Deputy Supervisor. He has functioned extensively with the EB-5 program secretive method. He was chosen, as I understand, vice president of the Organization to Invest in United States, the national market organization of regional.


Divine, we are happy to have you right here. Please proceed, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY THE USA (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At many, if all 10,000 slots were used, it would be 1 percent of the immigration every year to the USA. It is not near that yet, yet it is expanding and obtaining towards that. Specifically as USCIS, the agency that manages the program, has actually been making the rules clearer and the processes a lot more rational and clear for individuals who are organizing investments and for the financiers that are spending, even more individuals have actually wanted helpful resources and able to place effort and cash into the procedure to locate good projects and develop them, and then much more financiers have actually been prepared to invest their money and take the danger and utilize the money to create the jobs that is the point of the program.

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These jobs do not linger forever, and USCIS recognizes that and are attempting to speed up the you can try this out program, speed the process - EB5 Regional Center Program. That does not suggest that they are relaxing their scrutiny, and, actually, they are prepared to deny applications that are not qualifying. And they do so, as was mentioned


The local center part of the program is not. It belongs to an appropriations bill that was passed in 1992, and considering that then that program has actually been extended five times for 19 years. It is time for it to be long-term, and it requires to be done currently and not nearer to the day of expiry in September.


The procedure takes an excellent while to work up a project and afterwards to get the financiers accepted. And they do not desire their cash moving via till they have actually been accepted. And the specter of the expiry of this Regional Center Program in September is already preventing the growth of projects.

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I want to clear up that the Regional Center Program is not the very same as the half-million-dollar point. The idea of half a million or a million is a function of the regular EB-5 regulation that becomes part of the code. It just is a fact More Help that the majority of the regional facilities that are pooling investments have established those in locations of high unemployment or in rural areas where fifty percent- million-dollar financial investments are enabled, which makes good sense.