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The program is put in a really odd and non-helpful governmental location for the stimulation of international investment in the United States. We are providing away also much for as well little of a financial investment.


The local centers, with their half-million systems, essentially undercut the extra practical million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, need to have to do with creating service entities, not passive investments. It should have to do with creating real work, not clarify calculations regarding the indirect creation of jobs, which is currently component of the regulation.


Probably that is one of the reasons it has actually stopped working year after year to get to the legislative goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is as well full of middlemen, both public and exclusive. The program has greater than its share of rumors, which I will certainly enter into later if anybody is interested.


This is a firm that loves to state yes to candidates, however as the table in my testament shows, USCIS policemans have a lot more trouble with EB-5 applications than others. I believe that is something that no one has actually actually discussed a lot. EB5 Regional Center Program. There are high prices of inner rejections in this program and completely reason

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Seventh, in this program visas go to people that could not obtain them otherwise and to individuals whose organized financial investment is actually less, according to the Federal Get, than the ordinary mean total assets of all American family members in 2007. Allow me increase on among my observations.


My estimate based on the investors' environment-friendly card applications filed 2 years after the first financial investment-- these are the solid ones that remain and are accepted. This is 2009-- was that they had concerning $191 million verified-- that is my estimate. USCIS does not provide the kind of data that we can utilize on this.


So for each $100 of raised international investment that year, the EB program contributed one dime. Under a far more unsteady statistical base, the preliminary applications of would-be immigrant financiers, USCIS is telling journalists that the degree of investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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Thank you for listening to me. I look onward to your remarks and questions. [The ready declaration of David North appears as a submission for the record.] Chairman Leahy. Thank you. Our next witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's immigration method team.




Divine served as Principal Guidance of the United States Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Performing Supervisor, and after that site Performing Replacement Director. He has functioned extensively with the EB-5 program secretive method. He was chosen, as I understand, vice head of state of the Association to Spend in USA, the nationwide sector association of regional.


Divine, we are happy to have you right here. Please proceed, sir. 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. Thanks, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At a lot of, if all 10,000 ports were used, it would certainly be 1 percent of the immigration each year to the USA. It is not near that yet, but it is growing and obtaining toward that. Particularly as USCIS, the agency that manages the program, has actually been making the guidelines more clear and the processes more logical and clear for individuals that are arranging investments and for the investors who are investing, even more individuals have agreed and able to place initiative and pop over to this site money into the process to discover great jobs and establish them, and after that more investors have been ready to spend their money and take the risk and utilize the cash to create the jobs that is the point of the program.

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These jobs do not linger forever, and USCIS recognizes that and are attempting to speed the program, speed up the procedure - EB5 Regional Center Program. That does not imply that they are relaxing their scrutiny, and, actually, they are ready to deny applications that are not certifying. And they do so, as was stated


The local center part of the program is not. It is component of an appropriations costs that was passed in 1992, and considering that then that program has actually been prolonged five times for 19 years. It is time for it to be permanent, and it requires to be done currently and not nearer to the day of expiry in September.


The procedure takes a great while to work up a job and afterwards to get the capitalists authorized. And they do not want their cash flowing with till they have been accepted. And the specter of the expiration of this Regional Center Program in September is currently discouraging the development of jobs.

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I would certainly like to make clear that the Regional Center Program is not the exact same as the half-million-dollar point. The idea of half a redirected here million or a million is a function of the normal EB-5 legislation that is part of the code. It just is a fact that a lot of the regional centers that are pooling investments have established those in places of high unemployment or in rural areas where half- million-dollar financial investments are enabled, which makes good sense.