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The program is positioned in a very strange and non-helpful bureaucratic area for the stimulation of worldwide investment in the United States. We are offering away too 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 at all, as they perform in Australia, need to be regarding creating business entities, not easy investments. It needs to have to do with developing genuine tasks, not specify computations about the indirect production of jobs, which is currently part of the regulations.


Maybe that is just one of the factors why it has actually fallen short year after year to reach the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is also filled up with middlemen, both public and personal. The program has greater than its share of rumors, which I will get involved in later on if anyone is interested.


This is a firm that loves to state yes to applicants, however as the table in my statement reveals, USCIS police officers have a lot a lot more difficulty with EB-5 applications than others. I believe that is something that no one has truly spoken about much. EB5 Regional Center Program. There are high prices of interior rejections in this program and for great reason

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Seventh, in this program visas most likely to individuals who could not get them any various other means and to individuals whose planned financial investment is actually less, according to the Federal Get, than the average mean web well worth of all American families in 2007. Let me broaden on one of my observations.


My quote based on the investors' permit applications filed 2 years after the very first investment-- these are the strong ones that stay and are accepted. This is 2009-- was that they had about $191 million validated-- that is my price quote. USCIS does not give the type of information that we could utilize on this.


For every $100 of boosted international investment that year, the EB program contributed one cent. Under a much more shaky statistical base, the preliminary applications of would-be immigrant investors, USCIS is informing journalists that the level 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 look forward to your comments and inquiries. [The prepared declaration of David North looks like a submission for the record.] Chairman Leahy. Thank you. Our following witness is Robert Get More Information Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's migration method 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 afterwards Acting Deputy Director. He has actually functioned extensively with the EB-5 program in exclusive technique. He was chosen, as I understand, vice head of state of the Organization to Purchase USA, the national industry association of regional centers.


Divine, we are happy to have you below. Please proceed, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, BUY THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At the majority of, if all 10,000 ports were used, it would be 1 percent of the migration each year to the USA. It is not near that yet, but it is growing and getting toward redirected here that. Specifically as USCIS, the firm that looks after the program, has been making the rules more clear and the procedures much more rational and clear for individuals who are arranging investments and for the investors who are spending, more people have actually wanted and able to put effort and cash right into the procedure to locate good projects and establish them, and after that much more capitalists have been ready to spend their cash and take the danger and make use of the cash to produce the jobs that is the point of the program.

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These projects do not linger forever, and USCIS comprehends that and are attempting to speed the program, speed up the process - EB5 Regional Center Program. That does not mean that they are unwinding their scrutiny, and, as a matter of fact, they prepare to deny applications that are not qualifying. And they do so, as was mentioned


The regional center part of the program is not. It is component of an appropriations costs that was established in 1992, and since then that program has been extended 5 basics times for 19 years. It is time for it to be permanent, and it needs to be done currently and not nearer to the day of expiry in September.


The process takes a good while to work up a project and after that to get the investors accepted. And they do not want their cash flowing through until they have been accepted. And the specter of the expiry of this Regional Center Program in September is already discouraging the growth of jobs.

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I would certainly like to clear up that the Regional Center Program is not the exact 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 reality that a lot of the regional facilities that are pooling financial investments have set those instead of high joblessness or in backwoods where fifty percent- million-dollar financial investments are enabled, which makes good sense.