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The program is positioned in an extremely weird and non-helpful bureaucratic area for the stimulation of international investment in the United States. We are providing away also much for too tiny of an investment.


The regional facilities, with their half-million plans, essentially undercut the extra practical million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they perform in Australia, must have to do with producing business entities, not passive financial investments. It ought to have to do with developing real work, not specify calculations concerning the indirect creation of jobs, which is currently component of the regulation.


Possibly that is just one of the reasons that it has actually fallen short year after year to reach the legislative objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is as well full of middlemen, both public and personal. The program has greater than its share of rumors, which I will enter into later on if anybody is interested.


This is a firm that loves to state yes to candidates, yet as the table in my testimony shows, USCIS police officers have a lot more problem with EB-5 applications than others. I assume that is something that no one has actually really spoken about much. EB5 Regional Center Program. There are high prices of interior denials in this program and forever reason

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Seventh, in this program visas go to people who might not obtain them any kind of other way and to individuals whose scheduled investment is in fact much less, according to the Federal Get, than the average mean internet worth of all American households in 2007. Let me expand on among my observations.


My price quote based upon the investors' permit applications filed 2 years after the first financial investment-- these are the strong ones that continue to be and are accepted. This is 2009-- was that they had about $191 million verified-- that is my price quote. USCIS does not offer the type of data that we could use on this.


So for every single $100 of raised foreign financial investment that year, the EB program added one dime. Under a much extra unsteady analytical base, the preliminary applications of would-be immigrant capitalists, USCIS is informing reporters that the degree of investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thank you for listening to me. I eagerly anticipate your comments and concerns. [The ready declaration of David North shows up as an entry for the record.] 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 technique team.




Divine served as Principal Counsel of the United helpful site States Citizenship and Migration Providers from July 2004 until November 2006, the year in which he was Acting Director, and afterwards Acting Deputy Supervisor. He has actually functioned thoroughly with the EB-5 program in private practice. He was chosen, as I understand, vice president of the Association to Invest in United States, the nationwide industry organization of regional.


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


At the majority of, if all 10,000 slots were used, it would certainly be 1 percent of the migration every year to the USA. It is not near that yet, however it is expanding and getting towards that. Particularly as USCIS, the firm that manages the program, has been making the rules clearer and the procedures much more rational and clear for the people that are organizing investments and for the capitalists that are investing, more people have actually agreed and able to put effort and money right into the process to find great jobs and create them, and then extra investors have actually been eager to spend their cash and take the danger and use the money to produce the tasks that is the factor of the program.

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These jobs do not linger for life, and USCIS understands that and are attempting to speed up the program, speed the procedure - EB5 Regional Center Program. That does not suggest that they are unwinding their scrutiny, and, as a matter of fact, they prepare to reject applications that are not certifying. And they do so, as was stated


The local facility part of the program is not. It is component of an appropriations expense that was passed in 1992, and ever since that program has actually been prolonged 5 times for 19 years. It is time for it to be long-term, and it needs to be done now and not link nearer to the day of expiration in September.


The procedure takes a great while to work up a job and after that to obtain the financiers approved. And they do not want their cash flowing through up until they have been approved. And the specter of the expiry of this Regional Center Program in September is already preventing helpful site the development of tasks.

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I would love to clear up that the Regional Center Program is not the like the half-million-dollar thing. The idea of half a million or a million is a function of the normal EB-5 legislation that is part of the code. It simply is a reality that a lot of the local facilities that are pooling financial investments have actually set those in locations of high joblessness or in country areas where fifty percent- million-dollar investments are enabled, and that makes sense.