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The program is put in a very odd and non-helpful governmental area for the stimulation of global investment in the United States. We are providing away too much for also little of an investment.


The local facilities, with their half-million schemes, basically damaged the extra reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, must be concerning developing organization entities, not easy financial investments. It must have to do with developing actual tasks, not elaborate calculations about the indirect creation of jobs, which is now component of the legislation.


Maybe that is just one of the factors why it has stopped working time after time to get to the legal objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is also loaded with middlemen, both public and exclusive. The program has more than its share of scandals, which I will certainly enter later on if anybody is interested.


This is a company that likes to state yes to applicants, yet as the table in my statement shows, USCIS police officers have a lot extra trouble with EB-5 applications than others. I think that is something that nobody has actually actually discussed much. EB5 Regional Center Program. There are high prices of interior denials in this program and forever reason

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Seventh, in this program visas most likely to individuals that could not obtain them otherwise and to individuals whose organized financial investment is in fact less, according to the Federal Get, than the average mean total assets of all American family members in 2007. Let me increase on among my monitorings.


My quote based on the financiers' permit applications filed 2 years after the first investment-- these are the solid ones that continue to be and are accepted. This is 2009-- was that they had regarding $191 million verified-- that is my price quote. USCIS does not offer the type of information that we can use on this.


So for each $100 of raised international investment that year, the EB program added one penny. Under a far more wobbly analytical base, the initial applications of prospective immigrant financiers, USCIS is telling reporters that the level of financial investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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Thank you for listening to me. I expect your comments and concerns. [The prepared statement of David North appears as a submission for the document.] Chairman Leahy. Thank you. Our following witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's migration practice group.




Divine worked as Principal Advise of the United States Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Performing Supervisor, and afterwards Acting Replacement Director. He has actually functioned thoroughly with the EB-5 program in exclusive practice. He was elected, as I recognize, vice head of state of the Organization to Buy U.S.A., the national market association of regional centers.


Divine, we are pleased to have you below. Please go in advance, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, BUY THE USA (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. browse around here Thank you for having me.


At a lot of, if all 10,000 ports 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 getting toward that. Specifically as USCIS, the firm that manages the program, has actually been making the regulations clearer and the processes a lot more reasonable and clear for individuals who are organizing investments and for the capitalists who are investing, even more individuals have wanted and able to place initiative and money into the process to discover good jobs and establish them, and afterwards extra investors have agreed to spend their cash and take the danger and utilize the cash to develop the jobs that is the factor of the program.

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These projects do not wait around for life, and USCIS recognizes important source that and are trying to speed the program, speed up the process - EB5 Regional Center Program. That does not imply that they are relaxing their analysis, and, actually, they are ready to reject applications that are not qualifying. And they do so, as was stated


The local facility component of the program is not. It is part of an appropriations costs that was enacted in 1992, and ever since that program has actually been extended five times for 19 years. It is time for it to be long-term, and it requires to be done currently and not nearer to the day of expiry in September.


The procedure takes a good while to work up a project and afterwards to get the investors approved. And they do not want their money streaming with up until they have been authorized. And the specter of the expiration of this Regional Center Program in September is already preventing the growth of jobs.

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I would love to make clear that the Regional Center Program is not the same as the half-million-dollar point. The idea of half a million or a million is a function of the routine EB-5 regulation visit our website that is part of the code. It just is a truth that most of the regional facilities that are pooling investments have actually set those in places of high unemployment or in country areas where fifty percent- million-dollar financial investments are enabled, and that makes feeling.