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The program is placed in a really odd and non-helpful administrative area for the excitement of worldwide investment in the United States. We are providing away also much for too tiny of a financial investment.

The regional centers, with their half-million systems, basically damaged the extra 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, must be concerning creating business entities, not passive investments. It needs to be about creating real jobs, not elaborate estimations regarding the indirect creation of tasks, which is currently part of the regulation.


Perhaps that is one of the reasons that it has failed time after time to get to the legislative goal of 10,000 investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is also loaded with intermediaries, both public and personal. The program has even more than its share of rumors, which I will certainly get involved in later on if any person is interested.


This is a company that enjoys to state yes to applicants, but as the table in my testimony shows, USCIS police officers have much more difficulty with EB-5 applications than others. I believe that is something that nobody has really chatted about a lot. EB5 Regional Center Program. There are high prices of interior rejections in this program and for excellent factor

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Seventh, in this program visas most likely to people who might not obtain them differently and to individuals whose organized investment is actually much less, according to the Federal Book, than the ordinary mean total assets of all American families in 2007. Allow me increase on among my monitorings.


My quote based upon the investors' permit applications filed 2 years after the initial financial investment-- these are the solid ones that continue to be and are authorized. This is 2009-- was that they had concerning $191 million confirmed-- that is my price quote. USCIS does not supply the sort of information that we might utilize on this.


So for every $100 of boosted international financial investment that year, the EB program contributed one cent. Under a far more wobbly analytical base, the preliminary applications of potential immigrant capitalists, USCIS is telling reporters that the level of investment in the just-concluded year was about $1.2 billion. Allow us accept that.

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Thank you for paying attention to me. I look onward to your comments and questions. [The prepared statement of David North appears as a submission for the record.] Chairman Leahy. Thank you. Our next witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's immigration method team.

Divine acted as Chief Advice of the USA Citizenship and Migration Solutions from July 2004 till November 2006, the year in which he was Acting Supervisor, and after that Performing Deputy Supervisor. He has actually worked thoroughly with the EB-5 program secretive method. He was elected, as I understand, vice president of the Association to Purchase U.S.A., the national market organization of local centers.


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


At the majority of, if all 10,000 ports were used, it would be 1 percent of the migration annually to the USA. It is not near that yet, but it is growing and getting toward that. Specifically as USCIS, the agency that manages the program, has actually been making the rules clearer and the processes a lot more reasonable and clear for individuals that are organizing investments and for the investors who are spending, more people have actually agreed and able to put effort and cash right into the procedure to find excellent tasks and create them, and afterwards a lot more investors have actually been willing to invest their cash and take the danger and use the cash to develop the work that is the point of the program.

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These jobs do not wait about permanently, and USCIS understands that and are trying to speed the program, speed up the process - EB5 Regional Center Program. That does not mean that they are relaxing their go to this website analysis, and, as a matter of fact, they prepare to reject applications that are not qualifying. And they do so, as was stated

The regional facility component of the program is not. It is component of an appropriations expense that was passed in 1992, and ever since that program has been expanded 5 times for 19 years. It is time for it to be long-term, and it needs to be done currently and not nearer to the date of expiration in September.


The process takes a good while to function up a job and then to obtain the capitalists approved. And look at here they do not desire their cash streaming via until they have actually been authorized. And the specter of the expiration of this Regional Facility Program in September is already preventing the development of projects.

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I wish to clarify that the Regional Facility Program is not the very same as the half-million-dollar point. The idea of click to investigate half a million or a million is a function of the normal EB-5 regulation that belongs to the code. It simply is a truth that a lot of the local centers that are pooling financial investments have actually set those in areas of high joblessness or in backwoods where half- million-dollar investments are allowed, which makes good sense.