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The program is placed in a really weird and non-helpful administrative location for the stimulation of global investment in the United States. We are giving away too much for too tiny of an investment.


The local facilities, with their half-million systems, essentially damaged the much more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they carry out in Australia, need to have to do with developing organization entities, not passive financial investments. It must be about developing real jobs, not elaborate computations about the indirect creation of tasks, which is now part of the regulation.


Possibly that is one of the reasons it has actually stopped working year after year to get to the legislative objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is also full of middlemen, both public and private. The program has greater than its share of detractions, which I will certainly enter into later if anyone is interested.


This is a firm that enjoys to say yes to candidates, yet as the table in my testimony reveals, USCIS officers have a lot more trouble with EB-5 applications than others. I assume that is something that nobody has truly discussed a lot. EB5 Regional Center Program. There are high prices of internal denials in this program and permanently factor

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Seventh, in this program visas most likely to individuals who could not get them differently and to individuals whose planned investment is actually much less, according to the Federal Reserve, than the average mean total assets of all American households in 2007. Allow me broaden on one of my observations.


My price quote based upon the capitalists' permit applications filed 2 years after the very first investment-- these are the strong ones that continue to be and are approved. This is 2009-- was that they had about $191 million confirmed-- that is my price quote. USCIS does not supply the kind of data that we can make use of on this.


So for every $100 of enhanced foreign financial investment that year, the EB program added one cent. Under a far more shaky analytical base, the initial applications of would-be immigrant capitalists, USCIS get more info is informing journalists that the degree of investment in the just-concluded year was concerning $1.2 billion. Let us approve that.

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Thank you for listening to me. I look onward to your remarks and questions. [The ready statement of David North looks like an entry for the record.] Chairman Leahy. Thank you. 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 method group.




Divine acted as Chief Guidance of the USA Citizenship and Immigration Solutions from July 2004 till November 2006, the year in which he was Performing Supervisor, and after that Acting Replacement Supervisor. He has functioned extensively with the EB-5 program secretive practice. He was chosen, as I comprehend, vice president of the Organization to Spend in USA, the nationwide market organization of regional.


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


At a lot of, if all 10,000 ports were used, it would certainly be 1 percent of the immigration every year to the United States. It is not near that yet, yet it is growing and obtaining toward that. Especially as USCIS, the firm that looks after the program, has actually been making the guidelines clearer and the procedures more sensible and clear for individuals that are arranging financial investments and for the investors that are spending, more individuals have wanted and able to place effort and cash into the procedure to locate good projects and develop them, and after that more financiers have agreed to spend their money and take the risk and utilize the cash to create the jobs that is the point of the program.

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These tasks do not wait about permanently, and USCIS understands that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That does not suggest that they are relaxing their examination, and, as a matter of fact, they are ready to refute applications that are not certifying. And they do so, as was discussed


The local facility part of the program is not. It belongs to an appropriations costs that was passed in 1992, and ever since that program has been expanded 5 times for 19 years. It is time for it to be permanent, and it requires to be done currently and not nearer to the date of expiry in September.


The procedure takes a great while to work up a task and after that to get the financiers approved. And they do not desire their money moving with till they have actually been approved. And the specter of the expiry of this Regional Center Program in September is currently preventing the development of projects.

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I would love to clear up 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 normal EB-5 legislation that belongs to the code. It simply 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 country areas where half- million-dollar investments are allowed, which makes good sense.