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The program is placed in a really weird and non-helpful administrative location for the excitement of global investment in the United States. We are giving away as well much for too little of a financial investment.


The local centers, with their half-million systems, essentially damaged the more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they do in Australia, should be regarding creating service entities, not easy financial investments. It should be concerning creating actual tasks, not specify computations concerning the indirect development of work, which is now component of the legislation.


Probably that is one of the reasons that it has fallen short every year to get to the legislative goal of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is also loaded with intermediaries, both public and personal. The program has greater than its share of rumors, which I will certainly get involved in later on if anybody is interested.


This is a firm that enjoys to state yes to candidates, but as the table in my statement reveals, USCIS officers have a lot more trouble with EB-5 applications than others. I believe that is something that no one has truly discussed a lot. EB5 Regional Center Program. There are high prices of internal denials in this program and for great reason

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Seventh, in this program visas go to people that can not obtain them any type of various other means and to individuals whose planned financial investment is really less, according to the Federal Get, than the average mean web well worth of all American households in 2007. Let me expand on one of my observations.


My estimate 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 confirmed-- that is my price quote. USCIS does not provide the type of data that we might utilize on this.


So for every single $100 of increased international financial investment that year, the EB program contributed one dime. Under a far more wobbly statistical base, the initial applications of prospective immigrant financiers, USCIS is telling reporters that the level of investment in the just-concluded year was concerning $1.2 billion. Allow us accept that.

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Thanks for listening to me. I anticipate your remarks and inquiries. [The prepared declaration of David North looks like an entry for the document.] 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 functioned as Chief Guidance of the United States Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Performing Supervisor, and after that Acting Replacement Supervisor. He has functioned thoroughly with the EB-5 program secretive method. He was chosen, as I recognize, vice president of the Organization to Invest in U.S.A., the national sector organization of local.


Divine, we are happy to have you right here. Please go in advance, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, PURCHASE THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At many, if all 10,000 slots were used, it would be 1 percent of the immigration every year to the USA. It is not near that yet, however it is expanding and getting toward that. Specifically as USCIS, the company that supervises the program, has actually been making the guidelines more clear and the procedures much more sensible and clear for the people who are arranging financial investments and for the investors that are spending, even more people have actually agreed and able to put initiative and cash into the procedure to find great projects and establish them, and afterwards more financiers have actually agreed to invest their money and take the threat and make use of the cash to create the tasks that is the factor of the program.

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These tasks do not wait around forever, and USCIS comprehends that and are trying to speed the program, speed the process - EB5 Regional Center Program. That does not imply that they are relaxing their scrutiny, and, in fact, they are prepared to deny applications that are not qualifying. And they do so, as was discussed


The regional facility component of the program is not. It belongs to an appropriations expense that was enacted in 1992, and because then that program has been prolonged five times for 19 years. It is time for it to be permanent, and it requires to be done currently and not nearer to the day of expiry in September.


The procedure takes a great while to work up a project and after that to obtain the investors authorized. And they do not want their money moving through up until they have actually been approved. And the specter of the expiry of this Regional Center Program in September is already inhibiting the advancement of projects.

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I would love to clarify that the Regional Center Program is not the like get more info the half-million-dollar point. The concept of half a million or a million is a feature of the normal EB-5 regulation that belongs to the code. It simply is a reality that a lot of the regional centers that are pooling investments have actually established those in locations of high joblessness or in rural locations where half- million-dollar financial investments are allowed, and that makes good sense.