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The program is positioned in a very odd and non-helpful bureaucratic location for the stimulation of international investment in the United States. We are giving away too much for too small of an investment.

The regional facilities, with their half-million plans, basically damaged the more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they perform in Australia, should be concerning creating organization entities, not passive investments. It must have to do with developing real work, not elaborate computations about the indirect development of jobs, which is now component of the legislation.


Maybe that is one of the factors why it has actually failed time after time to reach the legal objective of 10,000 investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is as well loaded with middlemen, both public and exclusive. The program has more than its share of detractions, which I will certainly get involved in later on if any person is interested.


This is an agency that likes to say yes to applicants, yet as the table in my testimony shows, USCIS policemans have a lot more difficulty with EB-5 applications than others. I believe that is something that no one has actually really spoken about a lot. EB5 Regional Center Program. There are high prices of inner denials in this program and completely factor

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Seventh, in this program visas go to people that could not obtain them differently and to people whose organized financial investment is in fact much less, according to the Federal Get, than the ordinary mean total assets of all American households in 2007. Let me increase on one of my monitorings.


My quote based upon the capitalists' environment-friendly card applications filed 2 years after the very first investment-- these are the solid ones that continue to be and are authorized. This is 2009-- was that they had regarding $191 million validated-- that is my quote. USCIS does not offer the type of information that we can make use of on this.


For every $100 of increased international financial investment that year, the EB program added one dime. Under a far more unsteady statistical base, the preliminary applications of potential immigrant investors, USCIS is informing journalists that the degree of 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 anticipate your comments and concerns. [The prepared statement of David North looks like an entry for the document.] Chairman Leahy. Thanks. Our following witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He website is the head of the firm's immigration method team.

Divine worked as Chief Guidance of the USA Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Performing Director, and then Performing Replacement Director. He has actually worked thoroughly with the EB-5 program in exclusive method. He was elected, as I recognize, vice president of the Organization to Invest in USA, the nationwide industry organization of regional facilities.


DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At the majority of, if all 10,000 slots were made use of, it would certainly be 1 percent of the immigration every year to the United States. It is not near that yet, yet it is growing and obtaining toward that. Especially as USCIS, the agency that oversees the program, has been making the rules more clear and the processes a lot more sensible and clear for the individuals who are organizing investments and for the investors who are spending, even more individuals have actually been willing and able to put initiative and cash right into the procedure to find excellent projects and establish them, and after that more financiers have wanted to invest their cash and take the threat and use the cash to produce the work that is the point of the program.

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These tasks do not wait about for life, and USCIS comprehends that and are trying to speed the program, speed the procedure - EB5 Regional Center Program. That does not mean that they are relaxing their scrutiny, and, in reality, they prepare to reject applications that are not qualifying. And they do so, as was mentioned

The local center component of the program is not. It becomes part of an appropriations costs that was passed in 1992, and ever since that program has actually been extended 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 date of expiry in September.


The process takes a great while to function up a project and after that to get the capitalists approved. And they do not want their cash flowing via until they have been authorized. And the specter of the expiry of this Regional Center Program in September is currently dissuading the advancement of tasks.

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I would certainly such as to make clear that the Regional Center 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 routine EB-5 legislation that belongs to the code. It simply is a fact that a lot of the local facilities that are merging investments have actually established those in areas of high joblessness or in country locations where fifty percent- million-dollar financial investments are permitted, which makes good sense.