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The program is positioned in a very odd and non-helpful bureaucratic area for the excitement of global investment in the United States. We are offering away as well much for also small of a financial investment.

The local facilities, with their half-million plans, basically damaged the much more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, must have to do with producing service entities, not easy investments. It should have to do with creating real tasks, not specify computations about the indirect development of work, which is currently part of the regulations.


Maybe that is one of the reasons why it has failed every year to get to the legislative goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is also loaded with intermediaries, both public and exclusive. The program has greater than its share of rumors, which I will certainly get right into later on if anyone is interested.


This is an agency that likes to say yes to applicants, yet as the table in my statement reveals, USCIS policemans have a lot a lot more trouble with EB-5 applications than others. I believe that is something that nobody has actually chatted around much. EB5 Regional Center Program. There are high rates of inner denials in this program and forever reason

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Seventh, in this program visas most likely to individuals who could not get them otherwise and to individuals whose scheduled investment is actually much less, according to the Federal Reserve, than the ordinary mean internet worth of all American families in 2007. Let me expand on among my monitorings.


My estimate based upon the investors' copyright applications submitted 2 years after the very first financial investment-- these are the strong ones that remain and are accepted. This is 2009-- was that they had concerning $191 million verified-- that is my price quote. USCIS does not supply the type of information that we could make use of on this.


For every $100 of increased foreign financial investment that year, the EB program contributed one penny. Under a much extra wobbly analytical base, the initial applications of potential immigrant capitalists, 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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Thanks for listening to me. I eagerly anticipate your remarks and questions. [The ready declaration of David North shows up as 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 immigration method team.

Divine acted as Principal Advice of the United States Citizenship and Immigration Services from July 2004 until November 2006, the year read more in which he was Acting Director, and then Acting Deputy Director. He has worked thoroughly with the EB-5 program secretive practice. He was chosen, as I recognize, vice head of state of the Organization to Spend in USA, the national industry organization of local.


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


At many, if all 10,000 ports were used, it would be 1 percent of the immigration every year to the USA. It is not near that yet, however it is expanding and obtaining toward that. Particularly as USCIS, the company that oversees the program, has been making the policies clearer and the processes extra rational and clear for individuals who are arranging financial investments and for the capitalists who are investing, even more people have been willing and able to place initiative and cash right into the procedure to locate good jobs and develop them, and after that more investors have actually been ready to invest their money and take the danger and use the cash to produce the jobs that is the factor of the program.

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These jobs do not wait around permanently, and USCIS understands that and are attempting to speed the program, speed up the process - EB5 Regional Center Program. That does not indicate that they are relaxing their examination, and, as a matter of fact, they prepare to deny applications that are not qualifying. And they do so, as was stated

The regional 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 been expanded 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 expiry in September.


The procedure takes a good while to develop a project and after that to obtain the capitalists accepted. And they do not desire their money moving through till they have been approved. And the specter of the expiration of this Regional Facility Program in September is currently preventing the advancement of jobs.

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I would love to make clear that the Regional Center Program is not the very same as the half-million-dollar thing. The concept of half a million or a million is a feature of the routine EB-5 legislation that belongs to the code. It simply is a truth that a lot of the local facilities that are pooling investments have set those in locations of high joblessness or in country areas where fifty percent- million-dollar investments are permitted, which makes good sense.