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The program is positioned in a very strange and non-helpful bureaucratic place for the excitement of international investment in the United States. We are offering away too much for as well tiny of an investment.


The local facilities, with their half-million systems, basically undercut the more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, should be about producing service entities, not passive financial investments. It needs to be about creating actual jobs, not elaborate estimations concerning the indirect production of tasks, which is currently component of the regulation.


Probably that is one of the reasons why it has failed time after time to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is also loaded with middlemen, both public and private. The program has greater than its share of detractions, which I will certainly enter later on if anyone is interested.


This is a firm that loves to say yes to candidates, but as the table in my statement shows, USCIS officers have a lot more trouble with EB-5 applications than others. I think that is something that nobody has truly discussed much. EB5 Regional Center Program. There are high prices of inner denials in this program and permanently factor

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Seventh, in this program visas go to people who could not get them any type of other method and to individuals whose planned investment is actually less, according to the Federal Book, than the typical mean total assets of all American families in 2007. Let me expand on one of my monitorings.


My price quote based upon the capitalists' copyright applications filed 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 concerning $191 million verified-- that is my quote. USCIS does not give the sort of information that we might utilize on this.


For every $100 of enhanced international investment that year, the EB program added one penny. Under a a lot more wobbly statistical base, the first applications of would-be immigrant investors, USCIS is telling reporters that the degree of financial investment in the just-concluded year was concerning $1.2 billion. Let us approve that.

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Thank you for paying attention to me. I look onward to your comments and questions. [The ready statement of David North looks like an entry for the document.] Chairman Leahy. Thank you. Our following 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 Principal Advise of the USA Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Performing Supervisor, and after that Acting Deputy Supervisor. He has actually worked extensively with the EB-5 program secretive practice. He was chosen, as I recognize, vice head of state of the Organization to Invest in U.S.A., the national market organization 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 USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others.


At the majority of, if all 10,000 ports were made use browse around here of, 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 towards that. Particularly as USCIS, the firm that manages the program, has actually been making the guidelines more clear and the procedures more rational and clear for the individuals that are arranging investments and for the capitalists who are investing, even more individuals have agreed and able to put initiative and cash into the procedure to locate good projects and establish them, and afterwards a lot more investors have actually been prepared to spend their cash and take the danger and make use of the cash to create the tasks that is the factor of the program.

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These projects do not wait about forever, and USCIS comprehends that and are attempting to speed the program, speed the procedure - EB5 Regional Center Program. That does not mean that they are unwinding their analysis, and, as a matter of fact, they prepare to refute applications that are not certifying. And they do so, as was mentioned


The local center part of the program is not. It becomes part of an appropriations expense that was established in 1992, and ever since that program has actually been expanded 5 times for 19 years. It is time for it to be long-term, and it needs to be done now and not nearer to the day of expiry in September.


The procedure takes a great while to function up a task and after that to obtain the capitalists accepted. And they do not want their cash streaming through until they have been accepted. And the specter of the you could check here expiration of this Regional Facility Program in September is currently dissuading the development of jobs.

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I would certainly such as to clear up that the Regional Facility Program is not the my response like the half-million-dollar thing. The idea of half a million or a million is a function of the routine EB-5 legislation that belongs to the code. It just is a fact that the majority of the local facilities that are pooling investments have actually established those in places of high joblessness or in backwoods where fifty percent- million-dollar financial investments are enabled, and that makes good sense.