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The program is placed in a very odd and non-helpful administrative area for the stimulation of international investment in the United States. We are offering away also much for also little of an investment.


The local centers, with their half-million schemes, essentially damaged the a lot more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, need to have to do with creating business entities, not easy financial investments. It ought to have to do with developing real tasks, not specify computations about the indirect development of tasks, which is now part of the legislation.


Probably that is one of the reasons it has failed year after year to get to the legal goal of 10,000 investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is too loaded with intermediaries, both public and private. The program has greater than its share of rumors, which I will certainly enter later if any person is interested.


This is an agency that enjoys to say yes to candidates, yet as the table in my testament reveals, USCIS officers have a lot more trouble with EB-5 applications than others. I believe that is something that no one has actually truly chatted about a lot. EB5 Regional Center Program. There are high rates of interior denials in this program and forever factor

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Seventh, in this program visas most likely to individuals that might not get them differently and to individuals whose scheduled financial investment is in fact much less, according to the Federal Book, than the typical mean total assets of all American households in 2007. Allow me increase on one of my observations.


My quote based on the financiers' permit applications submitted 2 years after the very first financial investment-- these are the strong ones that stay and are approved. This is 2009-- was that they had regarding $191 million verified-- that is my quote. USCIS does not offer the type of data that we could utilize on this.


For every $100 of boosted international investment that year, the EB program added one penny. Under a much more unsteady statistical base, the preliminary applications of potential immigrant capitalists, USCIS is telling journalists that the degree of financial investment in the just-concluded year was regarding $1.2 billion. Let us approve that.

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Thank you for paying attention to me. I look onward to your remarks and concerns. [The ready declaration of David North looks like a submission for the document.] Chairman Leahy. Thanks. 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 migration technique team.




Divine worked as Chief Counsel of the USA Citizenship and Migration Providers from July 2004 till November 2006, the year in which he was Performing Director, and after that Performing Replacement Supervisor. He has functioned thoroughly with the EB-5 program secretive practice. He was chosen, as I comprehend, vice president of the Organization to Buy USA, the national industry organization of local centers.


Divine, we are thrilled to have you below. Please go on, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, PURCHASE THE United States (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At a lot of, if all 10,000 ports were used, it would be 1 percent of the migration every year to the United States. It is not near that yet, however it is expanding and getting toward that. Specifically as USCIS, the firm that oversees the program, has been making the guidelines more clear and the procedures much more rational and clear for the people that are organizing investments and for the capitalists that are investing, more people have wanted and able to place effort and cash into the procedure to find great projects and create them, and after that extra capitalists have wanted to spend their cash and take the danger and utilize the cash to develop here the jobs that is the factor of the program.

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These tasks do not linger permanently, and USCIS understands that and are trying to speed up the program, speed the process - EB5 Regional Center Program. That does not mean that they are relaxing their examination, and, in truth, they are prepared to deny applications that are not qualifying. And they do so, as was discussed


The regional facility part of the program is not. It becomes part of an appropriations expense that was enacted in 1992, and ever since that program has been prolonged 5 times for 19 years. It is time for it to be irreversible, and it requires to be done currently and not nearer to the day of expiry in September.


The process takes an excellent while to work up a job and after that to get the financiers accepted. And they do not want their cash streaming with up until they have actually been authorized. And the specter of the expiration of this Regional Center Program in September is currently preventing the growth of tasks.

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I would such as to clarify that the Regional Facility Program is not the like the half-million-dollar thing. The concept of half a million or a million is a feature of the routine EB-5 legislation that becomes part of the code. It just is a reality that the majority of the local centers that are pooling financial investments have established those instead of high unemployment or in backwoods where fifty percent- million-dollar financial investments are enabled, and that makes feeling.