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The program is positioned in an extremely strange and non-helpful bureaucratic area for the stimulation of international financial investment in the United States. We are offering away also much for too tiny of an investment.

The regional centers, with their half-million systems, basically damaged the extra sensible million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, need to be concerning developing organization entities, not passive investments. It needs to have to do with creating genuine jobs, not clarify computations about the indirect development of jobs, which is currently part of the regulations.


Maybe that is one of the reasons that it has fallen short time after time to reach the legal objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is also full of intermediaries, both public and personal. The program has more than its share of detractions, which I will certainly get involved in later if any person is interested.


This is an agency that loves to claim yes to applicants, yet as the table in my testimony reveals, USCIS policemans have a lot more problem with EB-5 applications than others. I think that is something that no one has truly spoken about a lot. EB5 Regional Center Program. There are high rates of interior rejections in this program and completely reason

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Seventh, in this program visas most likely to individuals that could not get them any other means and to people whose scheduled investment is really much less, according to the Federal Get, than the average mean total assets of all American households in 2007. Let me increase on one of my observations.


My estimate based upon the financiers' permit applications filed 2 years after the first investment-- these are the solid ones that stay and are accepted. This is 2009-- was that they had about $191 million confirmed-- that is my estimate. USCIS does not supply the kind of information that we can use on this.


So for each $100 of boosted international financial investment that year, the EB program contributed one dime. Under a much more unsteady analytical base, the preliminary applications of prospective immigrant financiers, USCIS is informing 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 expect your comments and concerns. [The go to this web-site prepared statement of David North looks like a submission for the record.] Chairman Leahy. Thank you. 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 immigration technique group.

Divine functioned as Chief Guidance of find the USA Citizenship and Immigration Services from July 2004 up until November 2006, the year in which he was Performing Supervisor, and after that Acting Replacement Director. He has functioned extensively with the EB-5 program secretive method. He was elected, as I comprehend, vice president of the Organization to Buy USA, the national industry association of regional centers.


Divine, we are pleased to have you here. Please go in advance, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, PURCHASE THE USA (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At the majority of, if all 10,000 slots were used, it would be 1 percent of the migration annually to the USA. It is not near that yet, but it is growing and obtaining towards that. Specifically as USCIS, the agency that supervises the program, has been making the regulations clearer and the processes much more reasonable and clear for individuals who are organizing financial investments and for the capitalists who are investing, even more individuals have been ready and able to place initiative and money into the procedure to find excellent tasks and develop them, and after that more financiers have agreed to invest their internet cash and take the risk and use the money to create the tasks that is the factor of the program.

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These jobs do not wait around for life, and USCIS understands that and are trying to speed the program, speed the procedure - EB5 Regional Center Program. That does not suggest that they are unwinding their examination, and, in fact, they are prepared to refute applications that are not certifying. And they do so, as was stated

The local facility part of the program is not. It belongs to an appropriations bill that was enacted in 1992, and because then that program has actually been expanded 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 good while to work up a task and after that to obtain the capitalists authorized. And they do not want their cash moving with till they have been authorized. And the specter of the expiration of this Regional Center Program in September is already dissuading the advancement of tasks.

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I would love to clarify that the Regional Center Program is not the very same as the half-million-dollar thing. The idea of half a million or a million is a function of the normal EB-5 legislation that belongs to the code. It simply is a fact that the majority of the regional centers that are pooling financial investments have set those instead of high joblessness or in backwoods where half- million-dollar financial investments are permitted, and that makes good sense.