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The program is placed in a really strange and non-helpful administrative place for the stimulation of worldwide financial investment in the United States. We are offering away too much for too tiny of an investment.

The local centers, with their half-million systems, essentially undercut the much more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, ought to have to do with developing organization entities, not easy investments. It should be regarding creating actual tasks, not clarify estimations concerning the indirect production of work, which is currently part of the regulations.

Possibly that is one of the reasons it has actually failed time after time to reach the legal objective of 10,000 investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is too loaded with intermediaries, both public and exclusive. The program has even more than its share of rumors, which I will enter into later if any person is interested.

This is an agency that likes to say yes to applicants, yet as the table in my testimony reveals, USCIS officers have a lot extra problem with EB-5 applications than others. I believe that is something that nobody has actually spoken about a lot. EB5 Regional Center Program. There are high prices of interior denials in this program and for excellent factor

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Seventh, in this program visas most likely to individuals who can not obtain them otherwise and to people whose organized financial investment is actually less, according to the Federal Get, than the average mean web worth of all American families in 2007. Allow me increase on one of my observations.

My price quote based on the capitalists' permit applications submitted 2 years after the first investment-- these are the strong ones that continue to be and are accepted. This is 2009-- was that they had about $191 million validated-- that is my price quote. USCIS does not provide the sort of information that we can utilize on this.

So for each $100 of boosted foreign financial investment that year, the EB program contributed one penny. Under a far more wobbly analytical base, the preliminary applications of prospective immigrant capitalists, USCIS is informing reporters that the degree of investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thank you for listening to me. I eagerly anticipate your remarks and concerns. [The ready declaration of David my site North looks like a submission for the record.] 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 migration practice team.


Divine functioned as Chief Advice of the USA Citizenship and Immigration Solutions from July 2004 until November 2006, the year in which he was Acting Supervisor, and after that Performing Deputy Supervisor. He has functioned thoroughly with the EB-5 program secretive technique. He was chosen, as I comprehend, vice head of state of the Organization to Buy United States, the national industry organization of local facilities.

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

At many, if all 10,000 slots were utilized, it would certainly be 1 percent of the immigration each year to the USA. It is not near that yet, but it is expanding and obtaining toward that. Particularly as USCIS, the company that supervises the program, has been making the policies more clear and the processes more sensible and clear for individuals that are arranging financial investments and for the financiers who are spending, even more people have wanted and able to put initiative and money into the procedure to find great tasks and establish them, and afterwards extra financiers have actually wanted to spend their money and take the risk and make use of the cash to create the tasks that is the factor of the program.

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These tasks 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 suggest that they are relaxing their analysis, and, actually, they prepare to reject applications that are not qualifying. And they do so, as was mentioned

The regional facility part of the program is not. It belongs to an appropriations expense that was established in 1992, and considering that next page then that program has actually been extended 5 times for 19 years. It is time for it to be long-term, and it requires to be done now and not nearer to the day of expiry in September.

The process takes a good while to function up a job and after that to obtain the capitalists authorized. And they do not want their money flowing with till they have been approved. And the specter of the expiry of this Regional Facility Program in September is already preventing the development of projects.

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I want to make clear that the Regional Facility Program is not the like the half-million-dollar point. The idea of half a million or a million is a feature of the regular EB-5 legislation that belongs to the code. It simply is a reality that many of the local centers that are pooling investments have set those instead of high joblessness or in backwoods where fifty percent- million-dollar investments are allowed, and that makes feeling.

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