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The program is placed in a really weird and non-helpful administrative place for the stimulation of international investment in the United States. We are offering away also much for as well small of a financial investment.


The local facilities, with their half-million systems, basically undercut the much more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they do in Australia, ought to have to do with producing organization entities, not passive financial investments. It needs to have to do with producing genuine work, not specify computations about the indirect development of tasks, which is now component of the legislation.


Perhaps that is one of the reasons that it has actually failed year after year to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is as well loaded with intermediaries, both public and exclusive. The program has even more than its share of rumors, which I will certainly enter into later if anybody is interested.


This is a firm that enjoys to say yes to applicants, but as the table in my statement shows, USCIS policemans have far more difficulty with EB-5 applications than others. I believe that is something that no one has actually discussed a lot. EB5 Regional Center Program. There are high prices of internal denials in this program and forever reason

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Seventh, in this program visas go to individuals who can not get them differently and to people whose planned financial investment is actually much less, according to the Federal Reserve, than the ordinary mean total assets of all American households in 2007. Let me increase on among my observations.


My estimate based upon the financiers' eco-friendly card applications filed 2 years after the initial financial investment-- these are the solid ones that stay and are authorized. This is 2009-- was that they had concerning $191 million validated-- that is my quote. USCIS does not supply the sort of data that we could use on this.


For every $100 of enhanced international investment that year, the EB program contributed one dime. Under a much more shaky statistical base, the preliminary applications of prospective immigrant financiers, USCIS is informing journalists that the level of financial investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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Thanks for paying attention to me. I look ahead to your comments and concerns. [The prepared statement of David North looks like a submission for the record.] Chairman Leahy. Thank you. Our Full Article next witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's immigration practice team.




Divine served as Chief Counsel of the United States Citizenship and Migration Services from July 2004 up until November 2006, the year in which he was Performing Director, and afterwards Performing Deputy Director. He has worked extensively with the EB-5 program secretive method. He was chosen, as I recognize, vice president of the Organization to Spend in United States, the national industry association of local.


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


At most, if all 10,000 slots were made use of, it would certainly be 1 percent of the immigration every year to the USA. It is not near that yet, but it is growing and obtaining toward that. Particularly as USCIS, the company that manages the Check Out Your URL program, has actually been making the policies more clear and the processes a lot more sensible and clear for the people who are arranging financial investments and for the financiers that are investing, more people have agreed and able to put effort and money right into the process to find excellent projects and develop them, and afterwards extra capitalists have actually wanted to invest their money and take the danger and utilize the money to create the tasks that is the point of the program.

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These projects do not linger for life, and USCIS comprehends that and are trying to speed the program, speed up the process - EB5 Regional Center Program. That does not suggest that they are relaxing their analysis, and, official site in reality, they prepare to deny applications that are not certifying. And they do so, as was discussed


The regional center component of the program is not. It is part of an appropriations bill that was established in 1992, and because then that program has been prolonged five times for 19 years. It is time for it to be long-term, and it requires to be done now and not nearer to the date of expiry in September.


The procedure takes a great while to work up a project and then to get the investors approved. And they do not desire their money streaming via till they have been accepted. And the specter of the expiration of this Regional Facility Program in September is already dissuading the advancement of jobs.

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I want to clear up that the Regional Center Program is not the like the half-million-dollar point. The idea of half a million or a million is a function of the normal EB-5 legislation that belongs to the code. It simply is a reality that the majority of the local centers that are pooling financial investments have actually set those instead of high unemployment or in country areas where fifty percent- million-dollar investments are permitted, which makes good sense.