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The program is placed in an extremely strange and non-helpful bureaucratic place for the excitement of global investment in the United States. We are providing away as well much for also small of a financial investment.


The regional centers, with their half-million plans, essentially undercut the much more practical million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they carry out in Australia, must have to do with producing business entities, not easy financial investments. It should be concerning producing real jobs, not specify calculations concerning the indirect development of jobs, which is currently part of the regulations.


Possibly that is just one of the reasons it has actually stopped working every year to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is as well full of intermediaries, both public and private. The program has even more than its share of rumors, which I will obtain into later on if any person is interested.


This is a company that enjoys to say yes to candidates, but as the table in my testament shows, USCIS policemans have a lot more problem with EB-5 applications than others. I think that is something that no one has really spoken about much. EB5 Regional Center Program. There are high prices of interior denials in this program and permanently reason

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Seventh, in this program visas go to people that can not obtain them any type of other way and to individuals whose planned investment is actually less, according to the Federal Book, than the typical mean total assets of all American families in 2007. Allow me increase on one of my observations.


My price quote based on the investors' permit applications filed 2 years after the initial investment-- these are the strong ones that remain and are approved. This is 2009-- was that they had regarding $191 million verified-- that is my price quote. USCIS does not give the kind of information that we might use on this.


For every $100 of boosted international financial investment that year, the EB program contributed one dime. Under a a lot more wobbly statistical base, the first applications of prospective immigrant investors, USCIS is informing reporters that the level of investment in the just-concluded year was about $1.2 read billion. Let us accept that.

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Thanks for listening to me. I look onward to your comments and questions. [The prepared statement of David North looks like 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 firm's migration practice group.




Divine acted as Chief Guidance of the United States Citizenship and Immigration Solutions from July 2004 up until November 2006, the year in which he was Performing Supervisor, and after that Performing Replacement Director. He has actually worked extensively with the EB-5 program secretive practice. He was elected, as I recognize, vice president of the Organization to Buy USA, the nationwide market organization of regional facilities.


DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At the majority of, if all 10,000 slots were used, it would certainly be 1 percent of the immigration each year to the United States. It is not near that yet, yet it is growing and obtaining toward that. Specifically as USCIS, the company that supervises the program, has actually been making the guidelines clearer and the procedures more sensible and clear for the people that are arranging check out this site investments and for the capitalists who are spending, more individuals have been willing and able to place effort and cash into the process to discover excellent jobs and establish them, and after that more financiers have agreed to invest their cash and take the danger and make use of the money to create the work that is the point of the program.

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These jobs do not wait about forever, and USCIS recognizes that and are trying to speed the program, speed the procedure - EB5 Regional Center Program. That does not indicate that they are relaxing their examination, and, actually, they prepare to refute applications that are not qualifying. And they do so, as was stated


The regional center part of the program is not. It belongs to an appropriations costs that was passed in 1992, and ever since that program has 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 date of expiry in September.


The process takes a great while to work up a project and afterwards to get the financiers approved. And they do not want their cash flowing with until they have actually been authorized. And the specter of the expiration of this Regional Center Program in September is currently discouraging the advancement of tasks.

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I would certainly like to make clear that the Regional Facility Program is not the exact same as the half-million-dollar thing. The concept of half a million or a million is a feature of the normal EB-5 legislation that is component of the code. It just is a reality that a lot of the regional centers that are merging investments have actually set those instead of high joblessness or in find out here backwoods where fifty percent- million-dollar financial investments are permitted, and that makes feeling.