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The program is positioned in a very odd and non-helpful bureaucratic area for the stimulation of worldwide investment in the United States. We are providing away too much for as well small of an investment.


The regional facilities, with their half-million plans, basically undercut the much more practical million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they perform in Australia, should be concerning developing organization entities, not easy financial investments. It needs to have to do with creating real work, not specify computations about the indirect creation of tasks, which is now component of the legislation.


Possibly that is one of the reasons that it has actually fallen short year after year to get to the legal objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is also loaded with middlemen, both public and exclusive. The program has greater than its share of detractions, which I will certainly enter into later on if any person is interested.


This is a firm that enjoys to claim yes to applicants, however as the table in my statement shows, USCIS officers have far more problem with EB-5 applications than others. I think that is something that no one has actually truly spoken about a lot. EB5 Regional Center Program. There are high rates of inner denials in this program and forever factor

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Seventh, in this program visas most likely to people who might not get them otherwise and to people whose scheduled investment is in fact much less, according to the Federal Reserve, than the ordinary mean net well worth of all American households in 2007. Let me broaden on among my observations.


My estimate based on the capitalists' copyright applications submitted 2 years after the first financial investment-- these are the strong ones that continue to be and are approved. This is 2009-- was that they had about $191 million validated-- that is my price quote. USCIS does not supply the type of information that we might make use of on this.


For every $100 of increased foreign investment that year, the EB program contributed one penny. Under a far more shaky statistical base, the preliminary applications of potential immigrant investors, USCIS is telling journalists that the degree of financial investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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Thank you for paying attention to me. I eagerly anticipate your remarks her comment is here and inquiries. [The prepared statement 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 method group.




Divine offered as Chief Counsel of the USA Citizenship and Immigration Providers from July 2004 up until November 2006, the year in which he was Performing Supervisor, and after that Acting Deputy Supervisor. He has functioned thoroughly with the EB-5 program he said secretive method. He was elected, as I understand, vice president of the Organization to Spend in USA, the nationwide market organization of regional centers.


STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, see this here 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 be 1 percent of the immigration yearly to the USA. It is not near that yet, however it is expanding and getting toward that. Specifically as USCIS, the company that oversees the program, has been making the policies clearer and the procedures much more reasonable and clear for individuals that are organizing investments and for the capitalists that are spending, even more people have actually been prepared and able to place initiative and money into the process to discover great jobs and create them, and afterwards extra financiers have agreed to spend their cash and take the risk and use the money to produce the jobs that is the point of the program.

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


The local facility part of the program is not. It belongs to an appropriations costs 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 long-term, and it requires to be done currently and not nearer to the day of expiration in September.


The procedure takes a good while to function up a job and then to obtain the investors accepted. And they do not want their cash flowing through till they have been approved. And the specter of the expiration of this Regional Center Program in September is already discouraging the advancement of tasks.

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I want to make clear that the Regional Facility Program is not the same as 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 centers that are merging financial investments have set those in areas of high joblessness or in backwoods where half- million-dollar investments are enabled, and that makes sense.