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The program is placed in a really strange and non-helpful administrative place for the stimulation of international investment in the United States. We are giving away also much for too small of a financial investment.

The local facilities, with their half-million systems, basically undercut the more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they carry out in Australia, should have to do with developing organization entities, not passive investments. It needs to be about creating real tasks, not elaborate estimations about the indirect production of tasks, which is now part of the regulations.

Probably that is one of the reasons it has fallen short year after year to reach the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is as well loaded with middlemen, both public and personal. The program has greater than its share of detractions, which I will get involved in later if any person is interested.

This is a firm that likes to say yes to applicants, however as the table in my statement shows, USCIS policemans have far more problem with EB-5 applications than others. I believe that is something that no one has truly discussed much. EB5 Regional Center Program. There are high prices of interior denials in this program and completely reason

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Seventh, in this program visas most likely to people that could not obtain them any type of various other means and to people whose organized financial investment is in fact less, according to the Federal Book, than the typical mean total assets of all American families in 2007. Let me expand on among my monitorings.

My estimate based on the investors' permit applications submitted 2 years after the initial financial investment-- these are the strong ones that remain and are authorized. This is 2009-- was that they had concerning $191 million validated-- that is my price quote. USCIS does not supply the kind of information that we might make use of on this.

So for each $100 of raised international investment that year, the EB program added one penny. Under a far more unsteady analytical base, the preliminary applications of would-be immigrant capitalists, USCIS is telling journalists that the degree of 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 remarks and questions. [The prepared statement of David North looks like a submission for the record.] Chairman Leahy. Thanks. Our following witness is EB5 Regional Center Program Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's migration practice team.


Divine acted as Principal Advice of the USA Citizenship and Migration Providers from July 2004 till November 2006, the year in which he was Acting Director, and after that Performing Replacement Supervisor. He has worked thoroughly with the EB-5 program secretive method. He was elected, as I comprehend, vice head of state of the Association to Invest in USA, the national industry organization of regional.

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

At most, if all 10,000 ports were made use of, it would certainly be 1 percent of the immigration annually to the United States. It is not near that yet, but it is expanding and obtaining towards that. Especially as USCIS, the firm that supervises the program, has actually been making the policies more clear and the processes extra logical and clear for the people that are arranging investments and for the financiers that are investing, more people have actually agreed and able to put effort and money into the process to discover great jobs and develop them, and afterwards much more financiers have actually wanted to invest their cash and take the threat and make use of the cash to create the jobs that is the factor of the program.

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These projects do not linger for life, and USCIS comprehends that and are trying to speed up the program, speed the procedure - EB5 Regional Center Program. That does not suggest that they are relaxing their scrutiny, and, in truth, they prepare to deny applications that are not certifying. And they do so, as was mentioned

The regional facility part of the program is not. It belongs to an appropriations expense that was passed in 1992, and ever since that program has actually been extended 5 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 process takes an excellent while to work up a project and after that to obtain the investors approved. And they do not desire their money flowing with up until they have actually been authorized. And the specter of the expiry of this Regional Center Program in September is currently inhibiting the advancement of jobs.

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I would such as to clear up that the Regional Facility Program is not the very same as the half-million-dollar point. The idea of half a million or a million is a function of the normal EB-5 law that belongs to the code. It just is a fact that a lot of the regional centers that are pooling investments have actually established those in places of high unemployment or in backwoods where half- million-dollar investments are permitted, and that makes feeling.

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