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The program is put in an extremely odd and non-helpful governmental location for the stimulation of worldwide investment in the United States. We are offering away also much for also small of an investment.

The local facilities, with their half-million schemes, essentially undercut the a lot more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they perform in Australia, ought to have to do with producing service entities, not easy financial investments. It should be concerning producing real jobs, not clarify estimations concerning the indirect creation of tasks, which is now component of the regulation.

Maybe that is just one of the reasons why it has failed time after time to get to the legal objective of 10,000 investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is as well loaded with intermediaries, both public and private. The program has greater than its share of rumors, which I will get involved in later if any person is interested.

This is a company that loves to state yes to candidates, but as the table in my statement reveals, USCIS officers have a lot more difficulty with EB-5 applications than others. I think that is something that nobody has actually actually discussed much. EB5 Regional Center Program. There are high prices of interior denials in this program and completely factor

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Seventh, in this program visas go to individuals that can not get them otherwise and to individuals whose organized financial investment is actually much less, according to the Federal Book, than the typical mean total assets of all American family members in 2007. Allow me expand on among my observations.

My quote based upon the capitalists' permit applications filed 2 years after the first financial 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 quote. USCIS does not supply the type of data that we could make use of on this.

So for each $100 of raised international financial investment that year, the EB program contributed one penny. Under a much a lot more wobbly statistical base, the first applications of potential immigrant investors, USCIS is informing journalists that the level of investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thanks for listening to me. I look ahead to your comments and questions. [The prepared statement here of David North looks like a submission for the record.] Chairman Leahy. Thanks. Our following witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's immigration technique team.


Divine worked as Principal Counsel of the USA Citizenship and Immigration Providers from July 2004 up until November 2006, the year in which he was Acting Director, and afterwards Acting Deputy Director. He has actually worked thoroughly with the EB-5 program in private technique. He was elected, as I understand, vice president of the Association to Spend in U.S.A., the nationwide industry association of local.

Divine, we are delighted to have you below. Please go on, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE USA (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.

At many, if all 10,000 ports were made use of, it would be 1 percent of the migration every year to the United States. It is not near that yet, yet it is growing and getting towards that. Particularly as USCIS, the firm that looks after the program, has been making the guidelines more clear and the processes more reasonable and clear for the individuals that are arranging investments and for the financiers who are spending, more individuals have actually wanted and able to place initiative and money right into the procedure to locate excellent jobs and establish them, and after that a lot more investors have actually wanted to spend their cash and take the threat and make use of the cash to develop the tasks that is the factor of the program.

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These projects do not wait about for life, and USCIS understands that and are attempting to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not indicate that they are unwinding their analysis, and, as a matter of fact, they prepare to refute applications that are not qualifying. And they do so, as was mentioned

The local facility component of the program is not. It belongs to an appropriations costs that was enacted in 1992, and since then that program has actually been expanded 5 times for 19 years. It is time for it to be irreversible, and it requires to be done now and not nearer to the date of expiration in September.

The process takes a good while to develop a project and after that to obtain the capitalists accepted. And they do not want their cash moving with up until they have been accepted. And the specter of the expiry of this Regional Facility Program in September is currently preventing the development of projects.

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I wish to clarify that the Regional Center Program is not the same as the half-million-dollar thing. The concept of half a million or a million is a function of the normal EB-5 law that is part of the code. It simply is a truth that most of the regional facilities that are pooling investments have set those instead of high unemployment or in rural areas where fifty percent- million-dollar investments are allowed, which makes feeling.

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