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The program is put in an extremely odd and non-helpful governmental location for the excitement of international financial investment in the United States. We are giving away as well much for as well small of an investment.


The regional centers, with their half-million systems, basically damaged the more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they perform in Australia, need to be about developing business entities, not easy financial investments. It ought to be concerning creating genuine jobs, not specify estimations regarding the indirect production of tasks, which is now part of the regulations.


Probably that is among the reasons that it has stopped working year after year to reach the legislative goal of 10,000 investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is also filled up with middlemen, both public and personal. The program has more than its share of detractions, which I will certainly enter into later if anyone is interested.


This is a company that loves to claim yes to candidates, yet as the table in my statement reveals, USCIS police officers have a lot extra difficulty with EB-5 applications than others. I assume that is something that no one has actually actually chatted around a lot. EB5 Regional Center Program. There are high rates of interior denials in this program and for great reason

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Seventh, in this program visas most likely to individuals who could not obtain them any various other way and to people whose scheduled financial investment is actually much less, according to the Federal Get, than the typical mean total assets of all American families in 2007. Allow me increase on one of my observations.


My price quote based on the capitalists' permit applications filed 2 years after the very first financial investment-- these are the solid ones that continue to be and are authorized. This is 2009-- was that they had regarding $191 million validated-- that is my quote. USCIS does not provide the sort of information that we can utilize on this.


So for every single $100 of enhanced international financial investment that year, the EB program contributed one dime. Under a much extra wobbly analytical base, the preliminary applications of would-be immigrant investors, USCIS is informing reporters that the level of financial investment in the just-concluded year was about $1.2 billion. Let us approve that.

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Thank you for paying attention to me. I expect your remarks and inquiries. [The prepared declaration of David North looks like a submission for the document.] 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 migration method group.




Divine acted as useful reference Principal Advice of the United States Citizenship and Immigration Services from July 2004 up until November 2006, the year in which he was Acting Director, and after that Acting Replacement Director. He has actually worked thoroughly with the EB-5 program in private method. He was elected, as I comprehend, vice head of state of the Organization to Invest in U.S.A., the nationwide market organization of regional.


STATEMENT 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 utilized, it would certainly be 1 percent of the migration each year to the USA. It is not near that yet, but it is growing and obtaining toward that. Especially as USCIS, the firm that supervises the program, has actually been making the rules clearer and the processes a lot more rational and clear for individuals that are organizing financial investments and for the financiers who are spending, even more people have wanted and able to put initiative and money into the process to find great projects and develop them, and then extra capitalists have actually agreed to invest their money and take recommended you read the threat and use the money to develop the work that is the factor of the program.

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These projects do not wait about permanently, and USCIS comprehends that and are attempting to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not indicate that they are relaxing their examination, and, actually, they prepare to reject applications that are not certifying. And they do so, as was mentioned


The regional facility component of the program is not. It belongs to an appropriations expense that was passed in 1992, and ever since that program has been expanded five times for 19 years. It is time for it to be irreversible, and it requires to be done now and not nearer to the date of expiration in September.


The procedure takes an excellent while to develop a project and afterwards to obtain the financiers accepted. And they do not desire their cash streaming with till they have actually been authorized. And the specter of the expiry of this Regional Facility Program in September is currently discouraging the development of jobs.

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I want to clarify that the Regional Facility Program is not the like the half-million-dollar thing. The concept of half a million or a Check Out Your URL million is a function of the regular EB-5 regulation that becomes part of the code. It simply is a reality that the majority of the regional facilities that are pooling investments have actually set those in areas of high unemployment or in backwoods where half- million-dollar financial investments are allowed, and that makes good sense.