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The program is positioned in an extremely strange and non-helpful bureaucratic location for the stimulation of worldwide investment in the United States. We are giving away also much for also little of a financial investment.


The regional centers, with their half-million plans, essentially undercut the a lot more practical million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, must be regarding producing company entities, not easy financial investments. It must be about producing actual tasks, not elaborate computations concerning the indirect creation of tasks, which is currently part of the regulations.


Probably that is one of the reasons it has stopped working year after year to reach the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is as well filled with intermediaries, both public and private. The program has greater than its share of rumors, which I will enter into later on if anybody is interested.


This is a company that likes to claim yes to candidates, however as the table in my testimony reveals, USCIS police officers have a lot a lot more problem with EB-5 applications than others. I think that is something that nobody has actually really talked around a lot. EB5 Regional Center Program. There are high rates of internal rejections in this program and completely reason

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Seventh, in this program visas most likely to people that could not get them any kind of various other means and to individuals whose planned investment is actually much less, according to the Federal Reserve, than the average mean internet well worth of all American family members in 2007. Let me expand on one of my monitorings.


My quote based upon the capitalists' eco-friendly card applications submitted 2 years after the initial financial investment-- these are the strong ones that continue to be and are accepted. This is 2009-- was that they had regarding $191 million confirmed-- that is my estimate. USCIS does not provide the kind of information that we might make use of on this.


For every $100 of raised international investment that year, the EB program added one penny. Under a a lot more wobbly statistical base, the first applications of would-be immigrant financiers, USCIS is telling reporters 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 expect your comments and inquiries. [The ready declaration of David North shows up as an entry for the document.] 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 firm's migration practice team.




Divine functioned as Principal Guidance of the USA Citizenship and Immigration Providers from July 2004 her comment is here until November 2006, the year in which he was Acting Supervisor, and after that Acting Replacement Supervisor. He has worked thoroughly with the EB-5 program in personal practice. He was elected, as I understand, vice head of state of the Organization to Invest in USA, the national 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 USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others.


At a lot of, if all 10,000 ports were utilized, it would certainly be 1 percent of the migration each year to the United States. It is not near that yet, but it is growing and getting toward that. Specifically as USCIS, the company that oversees the program, has actually been making the policies more clear and the procedures a lot more sensible and clear for the individuals who are organizing investments and for the capitalists who are investing, more individuals have agreed and able to place effort and money right into the process to find excellent tasks and create them, and after that extra financiers have actually agreed to spend their cash and take the danger and make use of the money to produce the jobs that next is the point of the program.

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These projects do not linger permanently, and USCIS understands that and are attempting to speed the program, speed up the procedure - EB5 Regional Center Program. That does not suggest that they are relaxing their analysis, and, as a matter of fact, they are all set to refute applications that are not certifying. And they do so, as was mentioned


The regional facility component of the program is not. It becomes part of an appropriations bill that was enacted in 1992, and considering that then that program has been expanded 5 times for 19 years. It is time for it to be permanent, and it requires to be done now and not nearer to the date of expiration in September.


The procedure takes a good while to develop a task and afterwards pop over to this site to obtain the investors accepted. And they do not want their money flowing through until they have actually been approved. And the specter of the expiry of this Regional Center Program in September is currently inhibiting the advancement of projects.

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I want to clear up that the Regional Center Program is not the very same as the half-million-dollar point. The concept of half a million or a million is a function of the normal EB-5 legislation that is component of the code. It just is a fact that the majority of the local centers that are merging financial investments have established those instead of high unemployment or in backwoods where half- million-dollar investments are allowed, and that makes good sense.