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


The regional facilities, with their half-million schemes, basically damaged the much more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they perform in Australia, need to be about developing company entities, not easy investments. It should be regarding developing actual work, not elaborate calculations concerning the indirect production of work, which is now component of the regulation.


Maybe that is among the factors why it has fallen short every year to reach the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is too full of intermediaries, both public and personal. The program has greater than its share of detractions, which I will certainly enter later if anyone is interested.


This is a company that loves to say yes to applicants, but as the table in my statement shows, USCIS policemans have a lot more difficulty with EB-5 applications than others. I assume that is something that nobody has actually discussed much. EB5 Regional Center Program. There are high rates of interior denials in this program and for good reason

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Seventh, in this program visas most likely to individuals who can not get them otherwise and to individuals whose organized investment is in fact less, according to the Federal Book, than the average mean internet worth of all American family members in 2007. Let me increase on one of my monitorings.


My quote based on the investors' permit applications filed 2 years after the first investment-- these are the solid ones that remain and are authorized. This is 2009-- was that they had about $191 million confirmed-- that is my estimate. USCIS does not supply the sort of data that we could use on this.


For every $100 of boosted foreign investment that year, the EB program contributed one penny. Under a much more shaky statistical base, the initial applications of potential immigrant financiers, USCIS is telling reporters that the level of financial investment in the just-concluded year had to do with $1.2 billion. Let us approve that.

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Thank you for paying attention to me. I eagerly anticipate your comments and inquiries. [The ready declaration of David North looks like an entry 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 immigration practice group.




Divine worked as Principal Advise of the USA Citizenship and Immigration Services from July 2004 until November 2006, the year in which he was Performing Director, and afterwards Performing Replacement Supervisor. He has functioned extensively with the EB-5 program secretive method. He was chosen, as I recognize, best site vice president of the Association to Spend in U.S.A., the national market association of regional facilities.


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


At most, if all 10,000 ports were made use of, it would certainly be 1 percent of the migration yearly to the United States. It is not near that yet, however it is expanding and getting towards that. Particularly as USCIS, the company that oversees the program, has actually been making the policies more clear and the procedures more logical and clear for the people who are arranging financial investments and for read more the financiers that are spending, even more individuals have agreed and able to put effort and money right into the process to locate good jobs and establish them, and then a lot more investors have actually agreed to spend their money and take the risk and use the cash to produce the work 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 the program, speed up the process - EB5 see Regional Center Program. That does not mean that they are unwinding their examination, and, actually, they are prepared to deny applications that are not certifying. And they do so, as was mentioned


The local facility part of the program is not. It belongs to an appropriations bill that was enacted in 1992, and ever since that program has actually been extended 5 times for 19 years. It is time for it to be permanent, and it needs to be done now and not nearer to the day of expiry in September.


The process takes a good while to develop a task and after that to obtain the investors approved. And they do not want their cash moving via till they have actually been accepted. And the specter of the expiry of this Regional Facility Program in September is already dissuading the development of tasks.

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I would love to make clear that the Regional Center 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 reality that most of the regional facilities that are merging investments have actually set those instead of high joblessness or in country locations where half- million-dollar investments are permitted, and that makes feeling.