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The program is placed in a really weird and non-helpful administrative area for the excitement of international investment in the United States. We are offering away as well much for also tiny of an investment.

The local facilities, with their half-million systems, basically undercut the extra practical million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they perform in Australia, must have to do with creating organization entities, not passive financial investments. It ought to be regarding creating real jobs, not clarify calculations regarding the indirect creation of jobs, which is currently part of the regulations.


Maybe that is just one of the reasons that it has stopped working year after year to get to the legal objective of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is also full of intermediaries, both public and private. The program has more than its share of detractions, which I will enter later if any person is interested.


This is an agency that likes to claim yes to candidates, but as the table in my statement reveals, USCIS policemans have far more trouble with EB-5 applications than others. I assume that is something that nobody has actually really spoken about a lot. EB5 Regional Center Program. There are high prices of inner denials in this program and permanently reason

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Seventh, in this program visas go to people that might not obtain them differently and to people whose organized investment is in fact less, according to the Federal Get, than the typical mean net worth of all American family members in 2007. Allow me broaden on one of my observations.


My quote based on the capitalists' permit applications filed 2 years after the very first investment-- these are the solid ones that continue to be and are authorized. 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 could utilize on this.


So for each $100 of boosted foreign financial investment that year, the EB program contributed one cent. Under a a lot more wobbly analytical base, the preliminary applications of would-be immigrant investors, USCIS is telling journalists that the level of investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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Thanks for paying attention to me. I look ahead to your comments and inquiries. [The ready declaration of David North appears as a submission for the document.] Chairman Leahy. Thanks. 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 migration method group.

Divine acted as Chief Counsel of the USA Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Acting Director, and afterwards Acting Replacement Director. He has actually functioned extensively with the EB-5 program secretive practice. He was elected, as I understand, vice head of state of the Association to Invest in United States, the national sector organization of local.


DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At most, if all 10,000 ports were utilized, it would certainly be 1 percent of the migration every year to the United States. It is not near that yet, but it is growing and getting toward that. Specifically as USCIS, the firm that manages the program, has been making the guidelines clearer and the procedures a lot more reasonable and clear for individuals who are organizing financial investments and for the capitalists who are spending, more individuals have been prepared and able to place initiative and cash right into the process to find good jobs and develop them, and then more financiers have agreed to invest their money and take the danger and use the cash to create the jobs that is the point of the program.

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These jobs do not wait about forever, and USCIS recognizes that and are trying to speed up the program, speed the process - EB5 Regional Center Program. That does not suggest that they are unwinding their analysis, and, in reality, they prepare to refute applications that are not qualifying. And they do so, as was pointed out

The regional center part of the program is not. It belongs click here to an appropriations expense that was passed in 1992, and given that then that program has been prolonged 5 times for 19 years. It is time for it to be irreversible, and it needs to be done currently and not nearer to the date of expiration in September.


The process takes a good while to function up a job and afterwards to obtain the financiers approved. And they do not desire their cash moving through till they have actually been authorized. And the specter of the expiration of this Regional Facility Program in September is currently dissuading the growth of jobs.

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I would such as to make clear that the Regional Facility Program is not the very same as the half-million-dollar point. The concept of half a million or a million is a function of the routine EB-5 regulation that becomes part of the code. It just is a truth that many of the local facilities that are merging investments have set those instead of high unemployment or in backwoods where fifty percent- million-dollar financial investments are permitted, and that makes good sense.