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The program is placed in an extremely weird and non-helpful administrative location for the stimulation of international financial investment in the United States. We are offering away also much for too tiny of an investment.


The local centers, with their half-million schemes, basically damaged the much more practical million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, ought to be concerning producing company entities, not easy investments. It ought to have to do with producing genuine work, not clarify computations concerning the indirect development of work, which is now component of the regulation.


Probably that is just one of the reasons why it has failed year after year to get to the legal objective of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is too filled with middlemen, both public and exclusive. The program has greater than its share of scandals, which I will enter later if any person is interested.


This is a firm that enjoys to say yes to candidates, however as the table in my testament reveals, USCIS policemans have far more problem with EB-5 applications than others. I believe that is something that no one has truly chatted about much. EB5 Regional Center Program. There are high rates of internal denials in this program and forever reason

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Seventh, in this program visas most likely to individuals who could not obtain them otherwise and to people whose planned investment is in fact less, according to the Federal Get, than the ordinary mean total assets of all American households in 2007. Let me broaden on one of my monitorings.


My price quote based on the investors' copyright applications submitted 2 years after the very first investment-- these are the strong ones that remain and are accepted. This is 2009-- was that they had about $191 million verified-- that is my quote. USCIS does not provide the type of information that we might utilize on this.


So for each $100 of boosted international financial investment that year, the EB program added one cent. Under a a lot more shaky analytical base, the preliminary applications of potential immigrant capitalists, USCIS is telling reporters that the level of investment in the just-concluded year was Visit This Link regarding $1.2 billion. Let us approve that.

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Thanks for paying attention to me. I look forward to your remarks and inquiries. [The prepared statement of David North looks like an entry for the document.] Chairman Leahy. Thank you. 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 method group.




Divine functioned as Principal Advice of the USA Citizenship and Migration Services from July 2004 until November 2006, the year in which he was Performing Supervisor, and after that Acting Deputy Supervisor. He has actually functioned extensively with the EB-5 program in exclusive practice. He was chosen, as I understand, vice president of the Association to Invest in United States, the nationwide industry organization of local.


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


At many, if all 10,000 ports were utilized, it would certainly be 1 percent of the immigration every year to the USA. It is not near that yet, however it is growing and obtaining toward that. Particularly as USCIS, the company that manages Clicking Here the program, has actually been making the policies clearer and the processes much more logical and clear for individuals that are arranging financial investments and for the investors that are investing, more individuals have agreed and able to put initiative and money right into the process to click reference discover good projects and establish them, and afterwards more investors have actually been willing to invest their money and take the danger and use the cash to produce the jobs that is the point of the program.

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These tasks do not linger permanently, and USCIS comprehends that and are trying to speed up the program, speed the procedure - EB5 Regional Center Program. That does not mean that they are relaxing their scrutiny, and, in truth, they are ready to reject applications that are not certifying. And they do so, as was discussed


The regional facility component of the program is not. It becomes part of an appropriations expense that was enacted in 1992, and given that then that program has actually been extended five times for 19 years. It is time for it to be irreversible, and it needs to be done currently and not nearer to the date of expiration in September.


The procedure takes an excellent while to develop a job and after that to get the investors authorized. And they do not desire their money flowing through till they have been authorized. And the specter of the expiration of this Regional Facility Program in September is already discouraging the development of jobs.

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I would like to clear up that the Regional Facility Program is not the exact same as the half-million-dollar thing. The idea of half a million or a million is a feature of the regular EB-5 legislation that becomes part of the code. It just is a truth that a lot of the local centers that are merging financial investments have set those in areas of high unemployment or in backwoods where fifty percent- million-dollar financial investments are enabled, which makes sense.