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The program is positioned in an extremely strange and non-helpful governmental area for the excitement of global financial investment in the United States. We are giving away as well much for also tiny of a financial investment.

The regional centers, with their half-million systems, basically undercut the much more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they perform in Australia, should have to do with developing company entities, not easy investments. It should have to do with creating real work, not elaborate estimations regarding the indirect production of work, which is now component of the regulations.


Maybe that is among the factors why it has failed year after year to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is as well full of intermediaries, both public and private. The program has even more than its share of detractions, which I will enter into later on if anybody is interested.


This is a company that loves to claim yes to applicants, however as the table in my testimony reveals, USCIS officers have a lot more difficulty with EB-5 applications than others. I think that is something that no one has actually really talked around a lot. EB5 Regional Center Program. There are high rates of interior denials in this program and completely reason

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Seventh, in this program visas go to people who could not get them otherwise and to individuals whose planned financial investment is actually less, according to the Federal Get, than the average mean net worth of all American households in 2007. Allow me increase on among my monitorings.


My price quote based on the investors' permit applications filed 2 years after the very first financial investment-- these are the strong ones that stay and are accepted. This is 2009-- was that they had concerning $191 million verified-- that is my quote. USCIS does not supply the type of data that we might use on this.


So for every single $100 of increased international investment that year, the EB program contributed one penny. Under a a lot more unsteady analytical base, the preliminary applications of prospective immigrant financiers, USCIS is telling reporters that the level 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 questions. [The prepared statement 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 company's immigration practice team.

Divine acted as Chief Advice of the USA Citizenship and Immigration Providers from July 2004 up until November 2006, the year in which he was Performing Supervisor, and after that Acting Replacement Director. He has actually functioned extensively with the EB-5 program in personal technique. He was chosen, as I recognize, vice head of state of the Organization to Invest in U.S.A., the national market association of local facilities.


STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST Clicking Here IN THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At many, if all 10,000 ports were utilized, it would be 1 percent of the immigration annually to the USA. visit this site It is not near that yet, but it is expanding and obtaining towards that. Particularly as USCIS, the firm that oversees the program, has actually been making the guidelines more clear and the processes a lot more rational and clear for individuals that are organizing financial investments and for the capitalists that are spending, even more individuals have been prepared and able to put effort and money right into the process to locate good projects and create them, and afterwards much more capitalists have wanted to spend their money and take the danger and use the cash to create the tasks that is the factor of you could try here the program.

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These jobs do not linger forever, and USCIS understands that and are trying to speed up the program, speed up the process - EB5 Regional Center Program. That does not imply that they are relaxing their examination, and, actually, they prepare to refute applications that are not qualifying. And they do so, as was discussed

The regional facility part of the program is not. It is component of an appropriations expense that was passed in 1992, and considering that then that program has been expanded five times for 19 years. It is time for it to be permanent, and it requires to be done now and not nearer to the day of expiration in September.


The process takes an excellent while to work up a project and then to get the investors authorized. And they do not desire their money moving with till they have actually been authorized. And the specter of the expiry of this Regional Center Program in September is currently preventing the advancement of tasks.

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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 concept of half a million or a million is a feature of the normal EB-5 law that becomes part of the code. It simply is a fact that many of the local facilities that are merging investments have established those in places of high unemployment or in country locations where half- million-dollar investments are enabled, which makes good sense.