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The program is positioned in a very odd and non-helpful governmental area for the excitement of international financial investment in the United States. We are offering away as well much for too small of an investment.

The regional facilities, with their half-million systems, basically damaged the extra sensible million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, must have to do with creating business entities, not easy investments. It ought to be regarding producing real jobs, not specify estimations regarding the indirect production of jobs, which is now component of the regulation.


Probably that is one of the reasons it has stopped working every year to reach the legal objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is also 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 an agency that likes to say yes to candidates, but as the table in my testament shows, USCIS officers have much more problem with EB-5 applications than others. I assume that is something that no one has actually truly spoken about a lot. EB5 Regional Center Program. There are high rates of inner rejections in this program and for great reason

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Seventh, in this program visas go to individuals that can not get them differently and to individuals whose planned financial investment is actually less, according to the Federal Reserve, than the ordinary mean total assets of all American family members in 2007. Let me increase on among my monitorings.


My quote based upon the financiers' permit applications filed 2 years after the initial investment-- these are the strong ones that remain and are accepted. This is 2009-- was that they had about $191 million verified-- that is my price quote. USCIS does not provide the kind of data that we might use on this.


For every $100 of boosted international financial investment that year, the EB program contributed one dime. Under a far more wobbly analytical base, the initial applications of potential immigrant investors, USCIS is informing journalists Homepage that the degree of investment in the just-concluded year had to do with $1.2 billion. Let us approve that.

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Thanks for listening to me. I anticipate your comments and inquiries. [The ready declaration of David North shows up as an entry for the record.] Chairman Leahy. Thanks. 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 immigration practice group.

Divine offered as Chief Advise of the United States Citizenship and Immigration Solutions from July 2004 till November 2006, the year in which he was Acting Director, and afterwards Acting Replacement Supervisor. He has worked extensively with the EB-5 program in exclusive practice. He was chosen, as I comprehend, vice head of state of the Organization to Spend in U.S.A., the nationwide market association of local.


STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others.


At many, if all 10,000 ports were used, it would be 1 percent of the immigration annually to the USA. It is not near that yet, but it is growing and getting towards that. Specifically as USCIS, the firm that oversees the program, has actually been making the rules clearer and the processes a lot more sensible and clear for individuals who are organizing financial investments and for her comment is here the capitalists that are investing, more people have actually wanted and able to put effort and money right into the process to discover good projects and create them, and then much more investors have actually agreed to invest their cash and take the threat 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 permanently, 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, in reality, they are ready to reject applications that are not qualifying. And they do so, as was pointed out

The regional facility part of the program is not. It belongs to an appropriations bill that was passed in 1992, and since then that program has actually been prolonged 5 times for 19 years. It is time for it to be long-term, and it requires to be done currently and not nearer to the day of expiration in September.


The process takes an excellent while to function up a project and then to get the capitalists accepted. And they do not desire their cash streaming look here through until they have actually been accepted. And the specter of the expiration of this Regional Facility Program in September is already preventing the advancement of jobs.

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I wish 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 routine EB-5 law that is component of the code. It just is a fact that a lot of the regional facilities that are merging investments have established those in areas of high joblessness or in backwoods where fifty percent- million-dollar investments are enabled, and that makes good sense.