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The program is positioned in a really odd and non-helpful governmental place for the excitement of worldwide financial investment in the United States. We are giving away too much for as well small of an investment.


The local centers, with their half-million schemes, basically damaged the much more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they do in Australia, need to be concerning developing service entities, not passive investments. It must be concerning developing real jobs, not clarify calculations regarding the indirect creation of tasks, which is currently component of the regulation.


Perhaps that is one of the reasons it has failed every year to reach the legislative goal of 10,000 investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is as well full of intermediaries, both public and exclusive. The program has greater than its share of rumors, which I will get involved in later if anybody is interested.


This is an agency that loves to state yes to candidates, however as the table in my testimony shows, USCIS police officers have a lot more trouble with EB-5 applications than others. I believe that is something that nobody has truly spoken about a lot. EB5 Regional Center Program. There are high prices of inner rejections in this program and permanently reason

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Seventh, in this program visas go to individuals who can not get them otherwise and to people whose planned investment is in fact much less, according to the Federal Book, than the ordinary mean total assets of all American family members in 2007. Allow me expand on among my monitorings.


My quote based upon the capitalists' copyright applications filed 2 years after the initial investment-- these are the solid ones that remain and are approved. This is 2009-- was that they had about $191 million confirmed-- that is my quote. USCIS does not supply the sort of data that we can utilize on this.


For every $100 of increased foreign investment that year, the EB program added one dime. Under a much more unsteady statistical base, the preliminary applications of potential immigrant capitalists, USCIS is informing journalists that the level of 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 look forward to your remarks and concerns. [The prepared statement 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 technique group.




Divine acted as Principal Advice of the United States Citizenship and Migration Solutions from July 2004 till November 2006, the year in which he was Acting Director, and after that Acting Deputy Supervisor. He has actually worked extensively with the EB-5 program secretive technique. He was chosen, as I comprehend, vice president of the Association to Invest in United States, the nationwide industry association of regional.


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


At a lot of, if all 10,000 slots were used, it would be 1 percent of the immigration every year to the United States. It is not near that look at this web-site yet, however it is expanding and getting towards that. Especially as USCIS, the firm that looks after the program, has actually been making the policies more clear and the procedures more sensible and clear for the individuals that are arranging financial investments and for the financiers that are spending, more people have actually been try this website eager and able to put initiative and money into the procedure to discover excellent tasks and create them, and after that much more investors have been willing to invest their money and take the risk and utilize the cash to produce the tasks that is the factor of the program.

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These jobs do not wait about permanently, and USCIS understands that and are trying to speed up the program, speed up the process - EB5 Regional Center Program. That does not mean that they are unwinding their scrutiny, and, as a matter of fact, they are prepared to refute applications that are not qualifying. And they do so, as was mentioned


The local facility component of the program is not. It is component of an appropriations bill that was established in 1992, and because then that program has been extended five times for 19 years. It is time for it to be irreversible, and it needs to be done now and not nearer to the date of expiry in September.


The process takes an excellent while to function up a project and after that to get the capitalists authorized. And they do not desire their money moving with till they have actually been accepted. And the specter of the expiry use this link of this Regional Center Program in September is currently dissuading the growth of projects.

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I want to make clear 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 feature of the normal EB-5 legislation that becomes part of the code. It simply is a fact that the majority of the regional facilities that are pooling investments have actually set those in places of high joblessness or in rural locations where half- million-dollar investments are permitted, and that makes good sense.