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The program is placed in an extremely weird and non-helpful governmental location for the stimulation of global financial investment in the United States. We are giving away also much for as well small of a financial investment.


The regional facilities, with their half-million systems, basically undercut the extra sensible million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, ought to be regarding creating organization entities, not easy investments. It needs to have to do with developing actual tasks, not elaborate calculations about the indirect creation of jobs, which is now part of the regulations.


Probably that is one of the reasons that it has failed every year to get to the legal objective 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 private. The program has greater than its share of detractions, which I will certainly enter later if anybody is interested.


This is an agency that enjoys to state yes to applicants, however as the table in my testimony shows, USCIS police officers have a lot extra problem with EB-5 applications than others. I think that is something that no one has truly discussed much. EB5 Regional Center Program. There are high prices of internal rejections in this program and completely reason

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Seventh, in this program visas most likely to people who could not obtain them otherwise and to individuals whose scheduled financial investment is really much less, according to the Federal Book, than the ordinary mean internet well worth of all American families in 2007. Let me increase on among my observations.


My estimate based upon the financiers' permit applications submitted 2 years after the initial investment-- these are the solid ones that continue to be and are accepted. This is 2009-- was that they had concerning $191 million confirmed-- that is my estimate. USCIS does not offer the kind of information that we might utilize on this.


So for every $100 of increased international financial investment that year, the EB program contributed one cent. Under a far more unsteady analytical base, the preliminary applications of potential immigrant investors, USCIS is telling reporters that the degree of financial investment in the just-concluded year was about $1.2 billion. Let us approve that.

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Thank you for listening to me. I look ahead to your comments and questions. [The prepared statement of David North looks like a submission for the record.] 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 migration technique team.




Divine served as Principal Advice of the United States Citizenship and Migration Solutions from July 2004 up until November 2006, the year in which he was Performing Director, and afterwards Acting Deputy Supervisor. He has worked extensively with the EB-5 program secretive technique. He was elected, as I understand, vice head of state of the Association to Purchase United States, the national industry organization of regional centers.


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, Legislator Grassley, and others.


At the majority of, if all 10,000 ports were made use of, it would certainly be 1 percent of the migration each year to the United States. It is not near that yet, however it is expanding and getting toward that. Especially as USCIS, the firm that looks after the program, has been making the guidelines view it more clear and the procedures much more reasonable and clear for the individuals who are arranging investments and for the capitalists that are spending, more people have actually been ready and able to place effort and money into the process to locate great jobs and create them, and after that much more capitalists have actually been eager to invest their money and take the risk and use the money to create the tasks that is the point of the program.

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These tasks do not linger permanently, and USCIS understands that and are trying to speed the program, speed the procedure - EB5 Regional Center Program. That does not imply that they are relaxing their examination, and, in fact, they are all set to reject applications that are not qualifying. And they do so, as was pointed out


The local facility component of the program is not. It becomes part of an appropriations expense that was passed in 1992, and since then that program has actually been prolonged 5 times for 19 years. It is time for it to be long-term, and it needs to be done currently and not nearer to the date of expiry in September.


The process takes an excellent while to develop a job and after that to view website get the capitalists approved. And they do not desire their cash streaming via until they have been accepted. And the specter of the expiration of this Regional Center Program in September is already inhibiting the advancement of tasks.

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I would certainly like to make clear that the Regional Facility Program is not the like the half-million-dollar point. The concept of half a million or a million is a feature of the normal EB-5 regulation that belongs to the code. It simply is a read the full info here truth that a lot of the regional centers that are merging investments have actually established those in areas of high joblessness or in country areas where fifty percent- million-dollar financial investments are enabled, and that makes feeling.