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The program is positioned in a really weird and non-helpful governmental location for the excitement of global investment in the United States. We are offering away also much for as well small of a financial investment.


The regional facilities, with their half-million schemes, basically undercut the more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they carry out in Australia, must be about producing service entities, not easy financial investments. It must have to do with producing actual jobs, not clarify estimations regarding the indirect development of tasks, which is now part of the regulations.


Perhaps that is among the reasons it has stopped working every year to get to the legal goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is also loaded with middlemen, both public and exclusive. The program has greater than its share of detractions, which I will certainly enter later on if anybody is interested.


This is a company that enjoys to say yes to applicants, but as the table in my testimony reveals, USCIS police officers have a lot more difficulty with EB-5 applications than others. I believe that is something that nobody has actually spoken about much. EB5 Regional Center Program. There are high rates of inner denials in this program and permanently factor

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Seventh, in this program visas most likely to individuals that could not obtain them differently and to individuals whose planned investment is really much less, according to the Federal Book, than the typical mean total assets of all American family members in 2007. Let me expand on one of my monitorings.


My quote based on the capitalists' permit applications submitted 2 years after the initial financial investment-- these are the strong ones that remain and are authorized. This is 2009-- was that they had about $191 million confirmed-- that is my quote. USCIS does not give the kind of information that we might utilize on this.


So for every single $100 of boosted international financial investment that year, the EB program contributed one dime. Under a a lot more unsteady analytical base, the preliminary applications of would-be immigrant financiers, USCIS is telling reporters that the level of investment in the just-concluded year was about $1.2 billion. Let us approve that.

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Thank you for paying attention to me. I expect your comments and concerns. [The prepared declaration of David North appears as a submission for the document.] Chairman Leahy. Thank you. Our following witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's immigration technique team.




Divine served as Principal Advice of the United States Citizenship and Migration Providers from July 2004 until November 2006, the year in which he was look at this website Acting Director, and afterwards Performing Deputy Supervisor. He has actually worked thoroughly with the EB-5 program secretive practice. He was elected, as I recognize, vice president of the Association to Invest in United click reference States, the nationwide market association of regional.


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


At a lot of, if all 10,000 ports were made use of, it would be 1 percent of the immigration each year to the USA. It is not near that yet, but it is growing and obtaining toward that. Specifically as USCIS, the firm that looks after the program, has been making the regulations clearer and the processes extra logical and clear for the people that are arranging financial investments and for the capitalists that are spending, even more individuals have agreed and able to put initiative and cash right into the procedure to locate good projects and establish them, and after that a lot more capitalists have actually been eager to spend their cash and take the threat and make use of the money to develop the tasks that is the factor of the program.

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These projects do not linger permanently, and USCIS understands that and are trying to speed up the program, speed the process - EB5 Regional Center Program. That does not suggest that they are relaxing their examination, and, as a matter of fact, they are ready to deny applications that are not qualifying. And they do so, as was stated


The regional center part of the program is not. It becomes part of an appropriations costs that was established in 1992, and ever since that program has actually been extended five 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 date of expiration in September.


The process takes a great while to develop a job and afterwards to obtain the investors approved. And they do not want their cash moving with until they have been authorized. And the specter of the expiry of this Regional Center Program in September is already inhibiting the development of projects.

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I would love to make clear that the Regional Facility Program is not more tips here the like the half-million-dollar thing. The idea of half a million or a million is a function of the normal EB-5 regulation that belongs to the code. It simply is a truth that a lot of the regional centers that are pooling investments have actually set those in locations of high joblessness or in country locations where fifty percent- million-dollar financial investments are allowed, and that makes good sense.