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The program is placed in a very strange and non-helpful governmental location for the excitement of global investment in the United States. We are providing away too much for also small of an investment.


The local centers, with their half-million plans, basically damaged the much more practical million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they perform in Australia, ought to have to do with producing service entities, not passive investments. It must be about creating real work, not elaborate computations concerning the indirect production of jobs, which is currently part of the regulation.


Perhaps that is among the reasons that it has actually fallen short every year to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is too loaded with middlemen, both public and private. The program has greater than its share of rumors, which I will get involved in later if anybody is interested.


This is a firm that enjoys to say yes to applicants, yet as the table in my testimony shows, USCIS policemans have a lot more difficulty with EB-5 applications than others. I believe that is something that nobody has actually really discussed a lot. EB5 Regional Center Program. There are high rates of interior rejections in this program and forever reason

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Seventh, in this program visas go to individuals who could not get them any kind of other method and to individuals whose organized financial investment is actually less, according to the Federal Book, than the average mean web worth of all American family members in 2007. Allow me broaden on one of my observations.


My price quote based upon the investors' permit applications filed 2 years after the first financial investment-- these are the strong ones that stay and are approved. This is 2009-- was that they had concerning $191 million confirmed-- that is my quote. USCIS does not provide the kind of information that we can use on this.


So for every $100 of enhanced international investment that year, the EB program contributed one penny. Under a a lot more shaky statistical base, the preliminary applications of would-be immigrant financiers, USCIS is telling journalists that the level of investment in the just-concluded year was concerning $1.2 billion. Let us accept that.

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Thanks for listening to me. I eagerly anticipate your comments and inquiries. [The ready declaration of David North looks like an entry for the record.] 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 immigration technique group.




Divine worked as Chief Advise of the United States Citizenship and Immigration Providers from July 2004 up until November 2006, the year in which he was Acting Director, and then Acting Replacement Director. He has actually worked extensively with the EB-5 program in personal method. He was elected, as I comprehend, vice head of state of the Organization to Buy United States, the national sector organization of local facilities.


DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At the majority of, if all 10,000 ports were made use of, it would be 1 percent of the migration each year to the United States. It is not near that yet, but it is growing and getting towards that. Particularly as USCIS, the company that looks after the program, has actually been making the guidelines clearer and the processes more logical and clear for individuals that are arranging investments and for the capitalists that are spending, more individuals have actually wanted and able to put effort and cash right into the procedure to locate great tasks and develop them, and after that much more capitalists have wanted to invest their money and take the risk and use the cash to develop the work that is the factor of the program.

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These projects do not linger permanently, and USCIS comprehends that and are trying to speed up the program, speed the process - EB5 Regional Center Program. That does not suggest that they are relaxing their scrutiny, and, actually, they prepare to deny applications that are not qualifying. And they do so, as was mentioned


The local 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 expanded 5 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 date of expiry in September.


The process takes an excellent while to develop a job and after that to obtain the investors accepted. And they do not want their money streaming via up until they have actually been authorized. And the specter of the expiry of this here Regional Center Program in September is currently preventing the growth of tasks.

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I would such as to make clear 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 function of the routine EB-5 regulation that belongs to the code. It just is a reality that a lot of the regional centers that are merging financial investments have actually set those instead of high joblessness or in backwoods where fifty percent- million-dollar financial investments are enabled, which makes sense.