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The program is positioned in an extremely odd and non-helpful administrative area for the excitement of global financial investment in the United States. We are offering away also much for too little of an investment.


The local centers, with their half-million systems, essentially undercut the more sensible 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 be regarding developing organization entities, not passive investments. It needs to have to do with producing real work, not specify estimations concerning the indirect production of jobs, which is now part of the regulation.


Possibly that is among the reasons why it has failed every year to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is too filled up with intermediaries, both public and personal. The program has even more than its share of detractions, which I will enter later if anyone is interested.


This is an agency that enjoys to claim yes to applicants, yet as the table in my testament shows, USCIS officers have a lot extra problem with EB-5 applications than others. I assume that is something that no one has actually discussed much. EB5 Regional Center Program. There are high prices of interior rejections in this program and for excellent reason

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Seventh, in this program visas most likely to individuals who might not get them differently and to people whose scheduled financial investment is actually less, according to the Federal Reserve, than the typical mean total assets of all American families in 2007. Let me broaden on one of my observations.


My estimate based on the capitalists' eco-friendly card applications filed 2 years after the initial investment-- these are the strong ones that continue to be and are authorized. This is 2009-- was that they had regarding $191 million confirmed-- that is my estimate. USCIS does not offer the sort of information that we might use on this.


So for every single $100 of increased international investment that year, the EB program added one penny. Under a a lot more shaky statistical base, the initial applications of potential immigrant capitalists, USCIS is informing reporters that the degree of financial investment in the just-concluded year had to do with $1.2 billion. Let us accept that.

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Thanks for paying attention to me. I look ahead to your remarks and concerns. [The ready statement of David North appears as an entry for the record.] 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 firm's immigration method team.




Divine functioned as Chief Guidance of the United States Citizenship and Migration Services from July 2004 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 secretive technique. He was chosen, as I comprehend, vice head of state of the Association to Invest in United States, the national sector association of local.


Divine, we are thrilled to have you right here. Please proceed, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At most, if all 10,000 slots were utilized, it would certainly be 1 percent of the immigration each year to the United States. It is not near that yet, yet it is expanding and obtaining towards that. Specifically as USCIS, the agency that supervises the program, has actually been making the regulations clearer and the procedures more logical and clear for the individuals that are organizing investments and for the investors that are investing, more people have actually wanted and able to put effort and money right into the procedure to discover good jobs and develop them, and after that much more capitalists have agreed to invest their money and take the danger and make use of the cash to create the jobs that is the factor of the program.

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These tasks do not linger forever, and USCIS understands that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That does not indicate that they are unwinding their scrutiny, and, as a matter of fact, they prepare to deny applications that are not qualifying. And they do so, as was discussed


The regional facility component of the program is not. It is component of get more info an appropriations costs that was established in 1992, and ever since that program has actually been expanded five times for 19 years. It is time for it to be irreversible, and it requires to be done currently and not nearer to the date of expiry in September.


The process takes a great while to work up a task and after that to obtain the capitalists approved. And they do not want their money flowing with until they have actually been authorized. And the specter of the expiration of this Regional Facility Program in September is currently discouraging the advancement of tasks.

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I want to clear up that the Regional Facility Program is not the very same as the half-million-dollar point. The concept of half a million or a million is a feature of the regular EB-5 law that belongs to the code. It just is a truth that the majority of the regional facilities that are pooling financial investments have actually set those in locations of high unemployment or in country locations where fifty percent- million-dollar financial investments are allowed, and that makes good sense.