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The program is put in a very odd and non-helpful governmental location for the stimulation of global investment in the United States. We are offering away too much for also little of an investment.

The regional facilities, with their half-million schemes, essentially damaged the a lot more practical million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, ought to have to do with creating business entities, not passive investments. It ought to have to do with developing actual jobs, not specify estimations regarding the indirect development of work, which is currently component of the legislation.


Possibly that is just one of the reasons that it has failed year after year to get to the legislative objective of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is also filled with intermediaries, both public and personal. The program has even more than its share of scandals, which I will certainly get involved in later if anyone is interested.


This is an agency that enjoys to state yes to candidates, yet as the table in my testament shows, USCIS policemans have far more trouble with EB-5 applications than others. I think that is something that no one has actually truly discussed much. 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 most likely to individuals that might not obtain them otherwise and to people whose planned financial investment is actually less, according to the Federal Book, than the typical mean total assets of all American households in 2007. Let me increase on among my monitorings.


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


For every $100 of enhanced foreign investment that year, the EB program contributed one dime. Under a a lot more unsteady analytical base, the first applications of potential immigrant financiers, USCIS is telling 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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Thank you for paying attention to me. I look onward to your remarks and questions. [The ready declaration of David visit the site North shows up as 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 company's migration practice team.

Divine acted as Chief Advise of the United States Citizenship and Immigration Solutions from July 2004 up until November 2006, the year in which he was Acting Supervisor, and then Acting Deputy Supervisor. He has functioned thoroughly with the EB-5 program secretive practice. He was chosen, as I understand, vice president of the Association to Buy U.S.A., the national sector organization of regional facilities.


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


At most, if all 10,000 slots were utilized, it would certainly be 1 percent of the migration every year to the USA. It is not near that yet, however it is growing and obtaining toward that. Especially as USCIS, the agency that oversees the program, has been making the policies more clear and the processes extra logical and clear for the people that are organizing financial investments and for the financiers that are investing, additional resources more individuals have actually wanted and able to put effort and cash right into the procedure to discover good projects and establish them, and afterwards more investors have actually wanted to invest their money and take the risk and use the money to produce the jobs that is the factor of the program.

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These projects do not wait about permanently, and USCIS recognizes that and are you could try here attempting to speed up the program, speed the procedure - EB5 Regional Center Program. That does not mean that they are relaxing their examination, and, as a matter of fact, they are ready to refute applications that are not qualifying. And they do so, as was discussed

The local facility component of the program is not. It becomes part of an appropriations costs that was enacted in 1992, and given that then that program has actually been expanded 5 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 expiration in September.


The procedure takes a good while to develop a project and after that to get the investors approved. And they do not desire their money streaming with until they have been accepted. And the specter of the expiration of this Regional Center Program in September is already discouraging the growth of jobs.

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I would love to make clear that the Regional Facility Program is not the like the half-million-dollar thing. The idea of half a million or a million is a feature of the normal EB-5 regulation that is part of the code. It just is a fact that many of the local centers that are pooling financial investments have actually set those instead of high unemployment or in rural locations where half- million-dollar financial investments are allowed, and that makes good sense.