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The program is put in an extremely strange and non-helpful administrative area for the excitement of global investment in the United States. We are offering away too much for as well small of an investment.


The local facilities, with their half-million plans, essentially damaged the more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they perform in Australia, need to have to do with developing organization entities, not easy financial investments. It must be concerning developing actual jobs, not elaborate calculations about the indirect production of work, which is currently component of the regulation.


Probably that is one of the reasons it has failed every year to reach the legislative objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is too full of intermediaries, both public and exclusive. The program has more than its share of scandals, which I will enter into later if anyone is interested.


This is a firm that likes to claim yes to candidates, but as the table in my statement reveals, USCIS policemans have a lot more trouble with EB-5 applications than others. I think that is something that no one has actually truly spoken about a lot. EB5 Regional Center Program. There are high rates of inner rejections in this program and permanently factor

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Seventh, in this program visas go to individuals that can not obtain them otherwise and to people whose planned investment is in fact less, according to the Federal Get, than the typical mean web worth of all American family members in 2007. Let me expand on one of my observations.


My estimate based upon the investors' permit applications filed 2 years after the very first financial investment-- these are the strong ones that remain and are approved. This is 2009-- was that they had regarding $191 million validated-- that is my price quote. USCIS does not offer the type of information that we can use on this.


For every $100 of raised foreign investment that year, the EB program added one penny. Under a much extra wobbly statistical base, the preliminary applications of potential immigrant financiers, USCIS is informing reporters 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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Thank you for paying attention to me. I eagerly anticipate your remarks and inquiries. [The prepared declaration of David North shows up as an entry for the record.] Chairman Leahy. Thanks. Our next witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the weblink company's immigration technique team.




Divine worked as Principal Guidance of the United States Citizenship and Immigration Providers from July 2004 until November 2006, the year in which he was Acting Director, and after that Performing Replacement Director. He has worked extensively with the EB-5 program secretive practice. He was chosen, as I understand, vice president of the Association to Buy USA, the national industry association of regional centers.


DECLARATION OF ROBERT C. DIVINE, LAWYER, 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 the majority of, if all 10,000 ports were made use of, it would be 1 percent of the migration yearly to the USA. It is not near that yet, however it is growing have a peek here and obtaining towards that. Especially as USCIS, the company that supervises the program, has been making the guidelines clearer and the procedures extra sensible and clear for individuals who are organizing financial investments and for the investors who are spending, even more individuals have been prepared and able to put initiative and money into the procedure to discover good projects and establish them, and afterwards more capitalists have actually wanted to spend their money and take the threat and make use of the cash to produce the jobs that is the factor of the program.

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These tasks do not wait around permanently, and USCIS recognizes that and are trying to speed up the program, speed up the process - EB5 Regional Center Program. That does not suggest that they are unwinding their examination, and, actually, they prepare to reject applications why not try this out that are not certifying. And they do so, as was pointed out


The local facility part of the program is not. It is component of an appropriations expense that was passed in 1992, and given that then that program has actually been expanded 5 times for 19 years. It is time for it to be long-term, and it needs to be done now and not nearer to the date of expiry in September.


The procedure takes an excellent while to function up a project and after that to get the investors approved. And they do not desire their money flowing via up until they have actually been approved. And the specter of the expiry of this Regional Facility Program in September is currently preventing the advancement of projects.

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I would like to make clear that the Regional Center Program is not the like the half-million-dollar point. The idea of half a million or a million is a feature of the regular EB-5 law that is part of the code. It just is a reality that the majority of the regional centers that are pooling financial investments have actually established those in places of high joblessness or in rural areas where fifty percent- million-dollar investments are enabled, which makes good sense.