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The program is positioned in a really strange and non-helpful administrative location for the stimulation of worldwide investment in the United States. We are offering away as well much for too little of a financial investment.

The regional centers, with their half-million plans, basically undercut the a lot more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, ought to have to do with developing organization entities, not passive investments. It ought to have to do with developing real tasks, not clarify estimations regarding the indirect development of work, which is now part of the regulations.


Possibly that is among the reasons that it has stopped working every year to reach the legislative objective of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is too filled up with middlemen, both public and exclusive. The program has greater than its share of rumors, which I will get involved in later on if anybody is interested.


This is an agency that likes to say yes to applicants, but as the table in my testimony shows, USCIS policemans have a lot more difficulty with EB-5 applications than others. I think that is something that nobody has actually actually spoken around a lot. EB5 Regional Center Program. There are high prices of internal denials in this program and for good factor

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Seventh, in this program visas go to people that might not obtain them otherwise and to people whose scheduled investment is actually less, according to the Federal Reserve, than the typical mean web worth of all American family members in 2007. Let me broaden on one of my monitorings.


My quote based upon the capitalists' permit applications filed 2 years after the initial financial investment-- these are the strong ones that remain and are approved. This is 2009-- was that they had regarding $191 million confirmed-- that is my estimate. USCIS does not give the sort of information that we can use on this.


For every $100 of increased international financial investment that year, the EB program contributed one penny. Under a far more wobbly statistical base, the initial applications of would-be immigrant financiers, USCIS is informing reporters that the level of financial investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thanks for paying attention to me. I anticipate your comments and questions. [The prepared declaration of David North shows up as a submission for the document.] 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 migration technique group.

Divine worked as Chief Advise of the USA Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Performing Director, and after that Performing Replacement Director. He has functioned thoroughly with the EB-5 program secretive technique. He was elected, as I understand, vice head of state of the Association to Spend in United States, the my response national market 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 United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At most, if all 10,000 ports were utilized, it would be 1 percent of the immigration each year to the United States. It is not near that yet, yet it is growing and obtaining towards that. Particularly as USCIS, the firm that looks after the program, has been making the guidelines more clear and the procedures a lot more rational and clear for individuals that are arranging financial investments and for the investors who are investing, even more people have actually agreed and able to place initiative and money right into the procedure to discover good jobs and establish them, and afterwards a lot more financiers have wanted to invest their cash and take the threat and use the cash to develop the jobs that is the factor of site here the program.

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These tasks do not wait around for life, and USCIS comprehends that and are trying to speed the program, speed the process - EB5 Regional Center Program. That does not imply that they are relaxing their examination, and, in fact, they are all set to reject applications that are not qualifying. And they do so, as was stated

The local center part of the program is not. It is part of an appropriations expense that was passed in 1992, and ever since that program has actually been expanded five times for 19 years. It is time for it to be long-term, and it needs to be discover this done currently and not nearer to the day of expiration in September.


The procedure takes a good while to function up a job and then to obtain the financiers authorized. And they do not desire their money moving through till they have been accepted. And the specter of the expiration of this Regional Center Program in September is currently dissuading the growth of tasks.

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I would love to clear up that the Regional Center Program is not the like the half-million-dollar point. The concept of half a million or a million is a feature of the normal EB-5 legislation that becomes part of the code. It just is a truth that the majority of the local centers that are pooling financial investments have set those in areas of high unemployment or in backwoods where half- million-dollar investments are allowed, which makes good sense.