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First, the program is positioned in a very weird and non-helpful governmental area for the excitement of worldwide financial investment in the United States. Second, its range is all wrong. We are giving away way too much for as well tiny of an investment. Better, elevating financial backing half a million dollars a tranche is, to state the least, inefficient.


The local facilities, with their half-million plans, basically undercut the a lot more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, ought to be concerning producing service entities, not easy investments. It needs to have to do with producing actual work, not clarify calculations regarding the indirect creation of tasks, which is currently part of the regulation.


Perhaps that is just one of the reasons it has failed every year to get to the legislative goal of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is also filled with middlemen, both public and private. The program has greater than its share of scandals, which I will enter later if anyone is interested.


This is a company that likes to state yes to candidates, however as the table in my statement reveals, USCIS officers have a lot extra difficulty with EB-5 applications than others. I assume that is something that no one has really spoken about a lot. 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 people that could not get them otherwise and to people whose organized investment is really much less, according to the Federal Get, than the typical mean total assets of all American households in 2007. Allow me increase on one of my monitorings.


My estimate based on the investors' permit applications submitted 2 years after the first investment-- these are the strong ones that continue to be and are authorized. This is 2009-- was that they had concerning $191 million validated-- that is my price quote. USCIS does not offer the kind of data that we could use on this.


So for every $100 of enhanced foreign financial investment that year, the EB program contributed one cent. Under a a lot more shaky statistical base, the first applications of potential immigrant financiers, USCIS is telling reporters that the degree of financial investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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Thanks for paying attention to me. I anticipate your comments and concerns. [The prepared declaration of David North appears as an entry for the document.] Chairman Leahy. Thanks. Our following witness is Robert Divine. He is an find here investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's immigration technique team.




Divine offered as Chief Guidance of the USA Citizenship and Immigration Services from July 2004 up until November 2006, the year in which he was Performing Supervisor, and after that Performing Replacement Director. He has functioned extensively with the EB-5 program secretive technique. He was chosen, as I recognize, vice president of the Organization to Invest in United States, the national market organization of local.


STATEMENT 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, Senator Grassley, and others.


At a lot of, if all 10,000 ports were made use of, it would be 1 percent of the immigration each year to the USA. It is not near that yet, but it is growing and obtaining towards that. Particularly as USCIS, the agency that looks after the program, has been making the regulations more clear and the procedures a lot more rational and clear for the people that are arranging financial investments and for the investors that are investing, more people have actually been official website willing and able to put initiative and money into the process to locate great jobs and establish them, and after that extra investors have agreed to spend their cash and take the threat and utilize the cash to produce the jobs that is the point of the program.

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These projects do not wait about forever, and USCIS understands that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That does not suggest that they are relaxing their analysis, and, more helpful hints in reality, they prepare to refute applications that are not qualifying. And they do so, as was stated


The regional facility part of the program is not. It is component of an appropriations bill that was passed in 1992, and since then that program has been extended five times for 19 years. It is time for it to be permanent, and it needs to be done now and not nearer to the day of expiry in September.


The procedure takes a good while to function up a project and afterwards to get the capitalists accepted. And they do not want their cash moving through until they have actually been approved. And the specter of the expiration of this Regional Facility Program in September is already dissuading the growth of jobs.

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I would like to clear up that the Regional Facility Program is not the like the half-million-dollar point. The concept of half a million or a million is a function of the routine EB-5 law that becomes part of the code. It simply is a reality that the majority of the local centers that are pooling investments have actually set those instead of high unemployment or in backwoods where half- million-dollar investments are enabled, and that makes good sense.