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The program is positioned in a very strange and non-helpful bureaucratic area for the excitement of global financial investment in the United States. We are giving away as well much for as well small of a financial investment.


The local facilities, with their half-million plans, essentially undercut the a lot more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they carry out in Australia, need to be concerning developing service entities, not easy investments. It ought to have to do with developing actual work, not specify estimations concerning the indirect production of tasks, which is now part of the regulation.


Maybe that is among the reasons that it has failed year after year to get to the legislative goal of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is as well full of intermediaries, both public and exclusive. The program has more than its share of rumors, which I will certainly get involved in later on if anybody is interested.


This is a company that loves to say yes to applicants, yet as the table in my statement shows, USCIS officers have a lot extra difficulty with EB-5 applications than others. I think that is something that no one has actually spoken about a lot. EB5 Regional Center Program. There are high rates of internal denials in this program and forever reason

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Seventh, in this program visas most likely to people who could not obtain them differently and to people whose organized financial investment is actually less, according to the Federal Book, than the average mean web well worth of all American family members in 2007. Let me broaden on one of my monitorings.


My estimate based upon the investors' eco-friendly card applications submitted 2 years after the first investment-- these are the strong ones that remain and are authorized. This is 2009-- was that they had regarding $191 million confirmed-- that is my quote. USCIS does not supply the type of data that we might make use of on this.


So for every $100 of increased international investment that year, the EB program added one dime. Under a a lot more unsteady analytical base, the preliminary applications of prospective immigrant financiers, USCIS is telling journalists that the degree of investment in the just-concluded year was concerning $1.2 billion. Let us accept that.

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Thanks for listening to me. I expect your remarks and inquiries. [The ready declaration of David North shows up as an entry for the document.] 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 migration method team.




Divine functioned as Chief Advice of the USA Citizenship and Migration Providers from July 2004 until November 2006, the year in which he was Acting Director, and after that Acting Replacement Supervisor. He has actually functioned thoroughly with the EB-5 program secretive practice. He was elected, as I comprehend, vice head of state of the Organization to Buy U.S.A., the national industry organization of regional facilities.


Divine, we are happy to have you here. Please go ahead, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, PURCHASE THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At most, if all 10,000 slots were utilized, it would be 1 percent of the migration yearly to the USA. It is not near that yet, yet it is expanding and obtaining toward that. Particularly as USCIS, the company that supervises the program, has actually been making the policies clearer and the procedures a lot more sensible and clear for individuals who are arranging financial investments and for the investors who are spending, even more individuals have agreed and able to place initiative and cash right into the procedure to find good projects and create them, and after that more capitalists have actually wanted to invest their money and take the threat and use the money to create the jobs that is the factor of the program.

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These tasks do not linger forever, and USCIS recognizes that and are attempting to speed the program, speed up the procedure - EB5 Regional Center Program. That does not indicate that they are relaxing their analysis, and, actually, they prepare to deny applications that are not qualifying. And they do so, as was stated


The local center component of the program is not. It belongs to an appropriations costs that was established in 1992, and ever since that program has been extended 5 times for 19 years. It is time for it to be irreversible, and it needs to be done now and not nearer to the day of expiry in September.


The procedure takes a great while to work up a task and after that to get the investors authorized. And they do not desire their money moving with up until they have actually been accepted. And the specter of the expiration of this Regional Center Program in September is currently inhibiting the growth of jobs.

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I would love to make clear that the Regional Center Program is not the very same as the half-million-dollar point. The idea of half a million or a million is a feature of the routine EB-5 regulation that becomes part of the code. It just is a truth that the majority of the local facilities that are more info merging investments have established those in places of high unemployment or in country areas where half- million-dollar investments are enabled, and that makes good sense.