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The program is positioned in a really weird and non-helpful administrative location for the stimulation of worldwide investment in the United States. We are giving away also much for too little of a financial investment.


The local centers, with their half-million plans, essentially undercut the extra sensible million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they perform in Australia, need to have to do with producing organization entities, not easy investments. It needs to have to do with developing actual tasks, not clarify computations regarding the indirect production of tasks, which is currently component of the regulations.


Maybe that is among the reasons that it has failed every year to reach the legislative objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is too full of intermediaries, both public and personal. The program has greater than its share of detractions, which I will get involved in later if anyone is interested.


This is a company that loves to state yes to candidates, yet as the table in my testament reveals, USCIS police officers have a lot more problem with EB-5 applications than others. I believe that is something that nobody has truly spoken about a lot. EB5 Regional Center Program. There are high prices of interior rejections in this program and permanently reason

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Seventh, in this program visas go to individuals who could not obtain them otherwise and to individuals whose scheduled 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 increase on among my monitorings.


My estimate based on the investors' copyright applications submitted 2 years after the very first financial investment-- these are the strong ones that continue to be and are accepted. This is 2009-- was that they had regarding $191 million verified-- that is my quote. USCIS does not give the kind of information that we might make use of on this.


For every $100 of enhanced foreign investment that year, the EB program contributed one cent. Under a far more unsteady analytical base, the initial applications of prospective immigrant investors, USCIS is informing reporters that the degree of investment in the just-concluded year was about $1.2 billion. Allow us accept that.

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Thanks for listening to me. I expect your comments and check here concerns. [The prepared statement of David North appears as 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 is the head of the firm's immigration practice team.




Divine served as Chief Counsel of the USA Citizenship and Migration Providers from July 2004 till November 2006, the year in which he was Performing Supervisor, and after that Acting Deputy Supervisor. He has worked thoroughly with the EB-5 program secretive method. He was elected, as I recognize, vice president of the Association to Invest in USA, the look here nationwide industry association of regional facilities.


Divine, we are pleased to have you below. Please go in advance, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At a lot of, if all 10,000 ports were made use of, it would be 1 percent of the migration each year to the United States. It is not near that yet, however it is growing and getting toward that. Particularly as USCIS, the firm that manages the program, has been making the regulations clearer and the processes much more logical and clear for the individuals that are arranging financial investments and for the investors who are investing, more people have wanted and able to put effort and money into the procedure to locate excellent projects and develop them, and afterwards extra capitalists have wanted to invest their money and take the threat and utilize the cash to develop the work that is the point of the program.

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These jobs do not linger forever, and USCIS understands that and are attempting to speed the program, speed the visit their website procedure - EB5 Regional Center Program. That does not indicate that they are unwinding their analysis, and, in fact, they prepare to deny 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 passed in 1992, and because then that program has been expanded 5 times for 19 years. It is time for it to be permanent, and it needs to be done now and not nearer to the date of expiry in September.


The process takes a great while to work up a project and after that to get the capitalists approved. And they do not desire their cash flowing with till they have been approved. And the specter of the expiration of this Regional Facility Program in September is already inhibiting the growth of tasks.

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I want 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 function of the regular EB-5 law that becomes part of the code. It simply is a fact that a lot of the local facilities that are merging investments have established those instead of high joblessness or in backwoods where half- million-dollar investments are allowed, which makes feeling.