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The program is placed in an extremely weird and non-helpful administrative location for the stimulation of worldwide financial investment in the United States. We are providing away too much for too little of a financial investment.


The regional centers, with their half-million plans, basically undercut the much more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they carry out in Australia, need to be regarding producing organization entities, not passive financial investments. It should be concerning producing actual tasks, not specify calculations about the indirect development of tasks, which is currently part of the regulation.


Perhaps that is one of the reasons it has actually failed year after year to reach the legal objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is as well loaded with intermediaries, 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 an agency that loves to claim yes to applicants, however as the table in my testament shows, USCIS police officers have far more difficulty with EB-5 applications than others. I believe that is something that nobody has truly discussed much. EB5 Regional Center Program. There are high rates of internal denials in this program and permanently factor

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Seventh, in this program visas go to people that can not obtain them otherwise and to individuals whose planned financial investment is in fact much less, according to the Federal Reserve, than the ordinary mean total assets of all American households in 2007. Let me broaden on among my monitorings.


My estimate based on the financiers' permit applications filed 2 years after the very first investment-- these are the strong ones that continue to be and are authorized. This is 2009-- was that they had about $191 million confirmed-- that is my estimate. USCIS does not provide the sort of data that we might utilize on this.


So for every $100 of increased international investment that year, the EB program added one cent. Under a much more wobbly analytical base, the preliminary applications of prospective immigrant investors, USCIS is telling reporters that the degree of investment in the just-concluded year was regarding $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 an entry for the document.] 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 company's immigration practice team.




Divine acted as Principal Advise of the USA Citizenship and Immigration Services from July 2004 up until November 2006, the year in which he was Acting Supervisor, and after that Performing Replacement Director. He has actually worked thoroughly with the EB-5 program in personal technique. He was chosen, as I understand, vice head of state of the Organization to Invest in U.S.A., the nationwide industry organization of local centers.


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. Thank you, Mr. Chairman, Senator Grassley, and others.


At a lot of, if all 10,000 ports were made use of, it would certainly be 1 percent of the immigration every year to the United States. It is not near that yet, however it is growing and getting toward that. Specifically as USCIS, article source the agency that manages the program, has been making the rules clearer and the processes much more logical and clear for the people that are organizing investments and for the investors who are spending, more individuals have actually wanted and able to place effort and money right into the procedure to discover excellent jobs and create them, and afterwards more financiers have actually wanted to spend their cash and take the risk and use the cash to develop the work that is the point go of the program.

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These projects do not wait about forever, and USCIS comprehends that and are trying to speed up the program, speed up the process - EB5 Regional Center Program. That does not imply that they are unwinding their scrutiny, and, as a matter of fact, they prepare to reject applications that are not qualifying. And they do so, as was stated


The regional facility component of the program is not. It becomes part of an appropriations costs that was enacted in 1992, and ever since that program has been prolonged 5 times for 19 years. It is time for it to be irreversible, and it requires to be done now and not nearer to the date of expiration in September.


The procedure takes an excellent while to develop a job and afterwards to get the investors accepted. And they do not desire their money moving with until they have actually been authorized. And the specter of the expiration of this Regional Facility Program in September is currently discouraging the development of projects.

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I would certainly such as to clear up that the Regional Center Program is not the like the half-million-dollar thing. The concept of half a million or a million is a function of the routine EB-5 regulation that becomes discover this info here part of the code. It simply is a truth that a lot of the local facilities that are pooling investments have actually established those in locations of high unemployment or in backwoods where half- million-dollar investments are permitted, and that makes sense.