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The program is positioned in a really odd and non-helpful administrative location for the stimulation of worldwide financial investment in the United States. We are providing away too much for also small of a financial investment.


The local centers, with their half-million schemes, basically undercut the much more practical million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they carry out in Australia, should be regarding creating company entities, not easy financial investments. It ought to be about producing genuine work, not clarify computations regarding the indirect production of jobs, which is currently part of the regulations.


Maybe that is among the factors why it has actually stopped working time after time to reach the legal objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is also full of middlemen, both public and private. 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 enjoys to claim yes to candidates, but as the table in my statement reveals, USCIS policemans have far more difficulty with EB-5 applications than others. I believe that is something that no one has truly spoken about much. EB5 Regional Center Program. There are high rates of interior rejections in this program and forever factor

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Seventh, in this program visas go to people that can not get them differently and to individuals whose planned investment is actually much less, according to the Federal Get, than the ordinary mean total assets of all American family members in 2007. Let me expand on one of my monitorings.


My quote based upon the financiers' permit applications submitted 2 years after the very first investment-- these are the solid ones that remain and are approved. This is 2009-- was that they had concerning $191 million verified-- that is my price quote. USCIS does not give the kind of data that we can use on this.


So for each $100 of boosted foreign financial investment that year, the EB program contributed one penny. Under a far more unsteady statistical base, the first applications of prospective immigrant investors, USCIS is telling journalists that the level of financial 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 look ahead to your comments and questions. [The ready statement of David North looks like a submission for the document.] Chairman Leahy. Thanks. 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 immigration technique group.




Divine acted as Chief Guidance of the USA Citizenship and Migration Solutions from July 2004 up until November 2006, the year in which he was Acting Supervisor, and afterwards Acting Replacement Supervisor. He has functioned extensively with the EB-5 program in private practice. He was chosen, as I recognize, vice president of the Organization to Purchase United States, the nationwide industry association of local facilities.


Divine, we are pleased to have you right here. Please go in advance, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, BUY THE U.S.A. (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At the majority of, if all 10,000 ports were used, it would be 1 percent of the immigration yearly to the USA. It is not near that yet, however it is growing and getting towards that. Specifically as USCIS, the company that oversees the program, has actually been making the policies clearer and the processes a lot more rational and clear for the people who are arranging financial investments and for the financiers that are spending, more individuals have actually wanted and able to place initiative and money into the procedure to find great jobs and create them, and after that more investors have agreed to invest their money and take the risk and utilize the cash to produce the tasks that is the point of the program.

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These projects do not linger for life, and USCIS understands that and are attempting to speed the program, speed up the procedure - EB5 Regional Center Program. That does not indicate that they are unwinding their examination, and, actually, they are prepared to deny applications that are not more info certifying. And they do so, as was mentioned


The regional center part of the program is not. It belongs to an appropriations bill that was established in 1992, and ever since that program has been prolonged 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 day of expiry in September.


The procedure takes a good while to develop a project and then to obtain the investors accepted. And they do not want their cash streaming through till they have been authorized. And the specter of the expiration of this Regional Center Program in September is currently preventing the advancement of jobs.

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I would certainly such as to make clear that the Regional Center Program is not the like the half-million-dollar thing. The concept of half a million or a million is a function of the regular EB-5 legislation that becomes part of the code. It just is a truth that a lot of the regional centers that are pooling financial investments have actually set those in areas of high unemployment or in backwoods where fifty percent- million-dollar financial investments are allowed, which makes good sense.