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The program is placed in a really strange and non-helpful administrative location for the excitement of global financial investment in the United States. We are offering away as well much for as well little of an investment.


The regional facilities, with their half-million systems, essentially undercut the extra sensible million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, should have to do with producing service entities, not passive investments. It needs to have to do with creating actual work, not clarify calculations concerning the indirect creation of tasks, which is currently part of the regulation.


Probably that is just one of the reasons why it has actually stopped working time after time to get to the legal objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is as well filled up with middlemen, both public and exclusive. The program has even more than its share of rumors, which I will certainly enter into later on if anyone is interested.


This is a firm that loves to claim yes to applicants, yet as the table in my testimony reveals, USCIS officers have a lot more problem with EB-5 applications than others. I believe that is something that nobody has actually truly chatted about a lot. EB5 Regional Center Program. There are high prices of interior denials in this program and forever factor

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Seventh, in this program visas most likely to individuals who could not get them otherwise and to individuals whose planned financial investment is actually less, according to the Federal Reserve, than the typical mean total assets of all American families in 2007. Allow me expand on one of my monitorings.


My quote based upon the financiers' permit applications filed 2 years after the initial financial investment-- these are the solid ones that stay and are approved. This is 2009-- was that they had about $191 million verified-- that is my estimate. USCIS does not provide the sort of data that we can use on this.


So for each $100 of increased foreign financial investment that year, the EB program added one penny. Under a much more unsteady analytical base, the first applications of potential immigrant investors, USCIS is telling reporters that the level of read the article financial investment in the just-concluded year had to do with $1.2 billion. Let us accept that.

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Thanks for listening to me. I eagerly anticipate your remarks and concerns. [The ready declaration of David North shows up as a submission for the record.] 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 team.




Divine functioned as Chief Advise of the United States Citizenship and Migration Services from July 2004 until November 2006, the year in which he was Performing Director, and after that Performing Replacement Director. He has functioned extensively with the EB-5 program in private practice. He was elected, as I understand, vice president of the Organization to Spend in U.S.A., the national market association of local.


DECLARATION OF ROBERT C. DIVINE, LAWYER, 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 most, if all 10,000 slots were used, it would certainly be 1 percent of the migration annually to the United States. It is not near that yet, yet it is expanding and obtaining towards that. Specifically as USCIS, the firm that oversees the program, has been making the policies clearer and the processes have a peek here much more rational and clear for individuals that are arranging investments and for the financiers who are investing, even more individuals have been prepared and able to put effort and cash into the process to locate great jobs and create them, and after that much more financiers have agreed to spend their cash and take the danger and make use of the cash to develop the tasks that is the point of the program.

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These jobs do not linger forever, and USCIS understands that web link and are attempting to speed the program, speed up the procedure - EB5 Regional Center Program. That does not indicate that they are unwinding their scrutiny, and, in reality, they are ready to reject applications that are not certifying. And they do so, as was pointed out


The regional facility part of the program is not. It becomes part of an appropriations costs that was established in 1992, and because then that program has been extended 5 times for 19 years. It is time for it to be irreversible, and it requires to be done now and not nearer to the day of expiration in September.


The procedure takes a good while to function up a task and after that to get the investors accepted. And they do not want their cash streaming with up until they have been approved. And the specter of the expiry of this Regional Facility Program in September is currently preventing the advancement of jobs.

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I wish to clear up that the Regional Facility Program is not the exact same as the half-million-dollar thing. The concept of half a million or a million is a feature of the routine EB-5 regulation that is part of the code. It simply is a reality that the majority of the regional facilities that are pooling financial investments have established those in locations of high unemployment or in backwoods where half- million-dollar financial investments are enabled, and that makes sense.