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The program is positioned in a really odd and non-helpful bureaucratic location for the stimulation of international investment in the United States. We are offering away also much for too tiny of a financial investment.


The local centers, with their half-million systems, basically undercut the extra reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they carry out in Australia, need to have to do with producing business entities, not passive investments. It needs to be about producing actual work, not specify estimations about the indirect development of tasks, which is currently part of the legislation.


Perhaps that is among the reasons that it has actually fallen short every year to get to the legal objective of 10,000 investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is also loaded with middlemen, both public and exclusive. The program has greater than its share of rumors, which I will enter later if anybody is interested.


This is an agency that enjoys to state yes to candidates, however as the table in my statement reveals, USCIS police officers have a lot more difficulty with EB-5 applications than others. I think that is something that no one has actually truly spoken about much. EB5 Regional Center Program. There are high rates of interior denials in this program and for good factor

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Seventh, in this program visas most likely to people that might not obtain them otherwise and to individuals whose organized investment is really less, according to the Federal Book, than the ordinary mean internet well worth of all American households in 2007. Let me expand on among my observations.


My price quote based on the investors' permit applications filed 2 years after the initial investment-- these are the solid ones that continue to be and are approved. This is 2009-- was that they had concerning $191 million confirmed-- that is my price quote. USCIS does not offer the sort of data that we can use on this.


So for every single $100 of enhanced international investment that year, the EB program added one cent. Under a far more shaky statistical base, the initial applications of potential immigrant financiers, USCIS is informing reporters that the level of investment in the just-concluded year was regarding $1.2 billion. Allow us approve that.

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Thank you for paying attention to me. I anticipate your comments and questions. [The prepared statement of David North shows up as an entry for next the record.] Chairman Leahy. Thanks. Our following witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's migration practice group.




Divine functioned as Chief Guidance of the United States Citizenship and Immigration Solutions from July 2004 till November 2006, the year in which he was Performing Director, and then Performing Deputy Supervisor. He has worked thoroughly with the EB-5 program secretive practice. He was elected, as I comprehend, vice head of state of the Organization to Spend in United States, the nationwide industry association of regional facilities.


Divine, we are happy to have you here. Please go ahead, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, PURCHASE THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At many, if all 10,000 slots were made use of, it would be go to this website 1 percent of the migration yearly to the USA. It is not near that yet, however it is expanding and getting towards that. Especially as USCIS, the agency that supervises the program, has been making the rules clearer and the procedures more sensible and clear for individuals that are organizing investments and for the investors that are investing, even more people have agreed and able to place initiative and money right into the procedure to discover good tasks and create them, and after that much more capitalists have actually been ready to invest their cash and take the danger and use the cash to develop the jobs that is the factor of the program.

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These jobs do not linger permanently, and USCIS understands that and are trying to speed up the program, speed the procedure - EB5 Regional Center Program. That does not mean that they are unwinding their analysis, and, in truth, they are all set to deny applications that are not certifying. And they do so, as was mentioned


The local center part of the program is not. It belongs to an appropriations bill that was enacted in 1992, and ever since that program has been prolonged five times for 19 years. It is time for it to be permanent, and it needs to be done currently and not nearer to the day of expiration in September.


The process takes a good while to work up a project and then to obtain the capitalists accepted. And they do not desire their money flowing through until they have been approved. And the specter of the expiry of this Regional Facility Program in September is already dissuading the development of projects.

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I would love to clarify that the Regional Facility Program is not the like the half-million-dollar point. The idea of half a million or a million is a feature of the regular EB-5 regulation that like this is part of the code. It simply is a truth that a lot of the regional facilities that are pooling investments have actually set those in locations of high joblessness or in backwoods where half- million-dollar financial investments are allowed, which makes feeling.