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The program is placed in a very weird and non-helpful administrative area for the stimulation of worldwide investment in the United States. We are providing away too much for also tiny of a financial investment.

The regional centers, with their half-million systems, basically undercut the more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they perform in Australia, need to have to do with developing organization entities, not easy investments. It should be concerning producing actual work, not clarify computations regarding the indirect creation of work, which is now part of the legislation.


Perhaps that is one of the reasons it has fallen short year after year to reach the legislative objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is too filled with middlemen, both public and personal. The program has more than its share of detractions, which I will certainly enter into later if any person is interested.


This is a company that enjoys to state yes to applicants, however as the table in my testament reveals, USCIS police officers have a lot more problem with EB-5 applications than others. I think that is something that nobody has actually truly spoken about a lot. EB5 Regional Center Program. There are high prices of interior rejections in this program and forever reason

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Seventh, in this program visas go to people who can not obtain them otherwise and to individuals whose scheduled investment is in fact much less, according to the Federal Book, than the ordinary mean total assets of all American households in 2007. Let me broaden on one of my observations.


My quote based on the financiers' environment-friendly card applications filed 2 years after the initial investment-- these are the solid ones that stay and are approved. This is 2009-- was that they had regarding $191 million confirmed-- that is my estimate. USCIS does not supply the kind of information that we can make use of on this.


For every $100 of raised foreign financial investment that year, the EB program added one cent. Under a far more unsteady statistical base, the initial applications of would-be immigrant investors, USCIS is telling reporters that the level of investment in the just-concluded year was concerning $1.2 billion. Allow us accept that.

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Thanks for paying attention to me. I look forward to your remarks and concerns. [The prepared declaration of David North looks like a submission for the record.] Chairman Leahy. Thanks. Our following witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's migration practice group.

Divine worked as Principal Counsel of the USA Citizenship and Immigration Services from July 2004 till November 2006, the year in which he was Performing Supervisor, and after that Performing Replacement Director. He has functioned extensively with the EB-5 program in personal technique. He was elected, as I comprehend, vice president of the Organization to Invest in USA, the nationwide sector association of regional.


STATEMENT OF ROBERT C. DIVINE, LAWYER, 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, Senator Grassley, and others.


At many, if all 10,000 ports were utilized, it would certainly be 1 percent of the migration each year to the United States. It is not near that yet, but it is growing and obtaining toward that. Especially as USCIS, the firm that manages the program, has actually been making the rules more clear and the procedures much more logical and clear for the individuals who are organizing investments and for the financiers who are spending, more people have agreed and able to place effort and money into the procedure to locate great jobs and create them, and afterwards much more capitalists have actually wanted to invest their money and take the risk and use the cash to create the jobs that is the point 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 imply 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 stated

The local center part of the program is not. It becomes part of an appropriations costs that was enacted in 1992, and considering that then that program has actually been expanded 5 times for 19 years. It is time for it to be irreversible, and it needs to be done now and not nearer to the day of expiration in September.


The procedure takes an excellent while to work up a task and afterwards to get the investors authorized. And they do not want their cash streaming via up until they have been accepted. And the specter of the expiration of this Regional Facility Program in September is already inhibiting the advancement of tasks.

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I wish to clear up that the Regional Facility Program is not the same as the half-million-dollar point. The concept 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 click here reality that the majority of the regional facilities that are pooling investments have set those in places of high unemployment or in backwoods where fifty percent- million-dollar investments are allowed, and that makes good sense.