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The program is positioned in a really weird and non-helpful administrative location for the excitement of worldwide financial investment in the United States. We are offering away also much for also small of an investment.


The regional facilities, with their half-million systems, essentially damaged the more practical million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they perform in Australia, ought to have to do with creating business entities, not easy financial investments. It should have to do with developing real tasks, not clarify estimations concerning the indirect production of work, which is currently component of the regulations.


Possibly that is one of the reasons that it has failed year after year to get to the legal goal of 10,000 investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is as well filled up with middlemen, both public and exclusive. The program has even more than its share of scandals, which I will certainly get involved in later if any person is interested.


This is a company that enjoys to state yes to applicants, however as the table in my testimony shows, USCIS police officers have a lot more trouble with EB-5 applications than others. I believe that is something that nobody has actually talked around a lot. EB5 Regional Center Program. There are high prices of interior denials in this program and completely reason

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Seventh, in this program visas go to people who can not obtain them otherwise and to individuals whose planned financial investment is in fact less, according to the Federal Get, than the average mean total assets of all American families in 2007. Allow me expand on one of my monitorings.


My estimate based upon the capitalists' permit applications submitted 2 years after the initial investment-- these are the strong ones that stay and are accepted. This is 2009-- was that they had regarding $191 million verified-- that is my price quote. USCIS does not give the sort of data that we might use on this.


So for every $100 of boosted foreign financial investment that year, the EB program contributed one cent. Under a much a lot more wobbly analytical base, the initial applications of prospective 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 listening to me. I eagerly anticipate your remarks and concerns. [The ready statement of David North looks like an entry for the document.] Chairman Leahy. Thanks. Our following witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's migration technique group.




Divine offered as Principal Advice of the USA Citizenship and Migration Providers from July 2004 until November 2006, the year in which he was Performing Director, and then Acting Deputy Director. He has worked extensively with the EB-5 program in personal practice. He was elected, as I understand, vice president of the Organization to Spend in USA, the national visit homepage industry organization of regional.


Divine, we are delighted to have you right here. Please go in advance, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, BUY THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At the majority of, if all 10,000 ports were used, it would be 1 percent of the immigration every year click to the United States. It is not near that yet, but it is growing and getting towards that. Specifically as USCIS, the firm that oversees the program, has been making the regulations more clear and the processes more reasonable and clear for individuals who are organizing investments and for the investors who are spending, even more individuals have wanted and able to put initiative and cash into the process to find excellent projects and develop them, and after that extra capitalists have actually wanted to spend their money and take the threat and use the money to create the jobs that is the factor of the program.

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These projects do not linger forever, and USCIS understands that and are trying to speed up the program, speed up the process - EB5 Regional Center Program. That does not mean that they are unwinding their scrutiny, and, in fact, they are all set to refute applications that are not qualifying. And they do so, as was stated


The local center component of the program is not. It is part of an appropriations expense that was established in 1992, and ever since that program has actually been prolonged five times for 19 years. It is time for it to be long-term, and it requires to be done now and not nearer to the date of expiry in September.


The procedure takes a good while to develop a project and after that to get the investors accepted. And they do not want their cash moving with up until they have actually been approved. And the specter of the expiration i thought about this of this Regional Center Program in September is already discouraging the development of projects.

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I would certainly 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 regular EB-5 regulation that belongs to the code. It just is a reality that the majority of the local facilities that are merging investments have actually set those in locations of high unemployment or in backwoods where fifty percent- million-dollar financial investments are permitted, which makes good sense.