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The program is put in a very strange and non-helpful governmental place for the excitement of global investment in the United States. We are offering away as well much for also little of a financial investment.

The local facilities, with their half-million systems, basically damaged the extra reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, should be concerning creating business entities, not passive investments. It should have to do with creating actual work, not clarify calculations concerning the indirect development of jobs, which is currently part of the regulation.


Probably that is among the reasons that it has failed every year to get to the legal goal of 10,000 investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is also loaded with middlemen, both public and exclusive. The program has even more than its share of detractions, which I will certainly enter into later on if any person is interested.


This is an agency that likes to say yes to candidates, yet as the table in my statement reveals, USCIS officers have a lot more difficulty with EB-5 applications than others. I believe that is something that no one has actually truly discussed a lot. EB5 Regional Center Program. There are high prices of inner denials in this program and completely reason

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Seventh, in this program visas most likely to individuals that could not get them otherwise and to people whose planned financial investment is actually less, according to the Federal Get, than the typical mean web worth of all American households in 2007. Allow me broaden on one of my observations.


My quote based upon the financiers' permit applications submitted 2 years after the initial investment-- these are the strong ones that remain and are approved. This is 2009-- was that they had about $191 million validated-- that is my price quote. USCIS does not give the sort of data that we might utilize on this.


For every $100 of increased foreign investment that year, the EB program added one cent. Under a much more unsteady statistical base, the initial applications of potential immigrant financiers, USCIS is informing reporters that the degree of financial 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 expect your comments and questions. [The prepared statement of David North looks like a submission for the document.] 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 company's migration technique group.

Divine worked as Principal Advise of the USA Citizenship and Immigration Solutions from July 2004 until November 2006, the year in which he was Acting Director, and after that Acting Replacement Supervisor. He has worked extensively with the EB-5 program secretive technique. He was chosen, as I understand, vice head of state of the Association to Purchase USA, the national market organization of regional centers.


Divine, we are thrilled to have you here. Please go on, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY THE United States (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At a lot of, if all 10,000 ports were utilized, it would read the article certainly be 1 percent of the migration each year to the USA. this link It is not near that yet, however it is growing and getting towards that. Particularly as USCIS, the agency that looks after the program, has actually been making the policies more clear and the procedures extra logical and clear for the people that are organizing financial investments and for the financiers who are spending, even more individuals have wanted and able to place initiative and cash into the process to find great jobs and create them, and afterwards more investors have been prepared to invest their cash and take the threat and use the cash to create the jobs that is the factor of the program.

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These projects do not linger for life, and USCIS understands that and are attempting to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not mean that they are unwinding their scrutiny, and, as a matter of fact, they prepare to reject applications that are not certifying. And they do so, as was pointed out

The local center part of the program is not. It is component of an his comment is here appropriations bill that was established in 1992, and considering that then that program has actually been extended 5 times for 19 years. It is time for it to be permanent, and it requires to be done currently and not nearer to the date of expiration in September.


The procedure takes an excellent while to develop a job and afterwards to obtain the investors authorized. And they do not want their money flowing with up until they have been accepted. And the specter of the expiry of this Regional Facility Program in September is currently discouraging the advancement of jobs.

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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 function of the normal EB-5 law that is component of the code. It just is a truth that the majority of the regional facilities that are merging financial investments have set those instead of high joblessness or in country areas where half- million-dollar investments are allowed, and that makes feeling.