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The program is put in a really weird and non-helpful bureaucratic place for the excitement of international financial investment in the United States. We are offering away also much for also tiny of an investment.


The regional facilities, with their half-million systems, basically damaged the a lot more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, should have to do with producing business entities, not easy financial investments. It needs to have to do with creating actual work, not clarify calculations about the indirect development of work, which is now component of the regulation.


Maybe that is one of the reasons it has stopped working time after time to get to the legislative goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is also filled up with middlemen, both public and exclusive. The program has greater than its share of scandals, which I will certainly enter later if any person is interested.


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

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Seventh, in this program visas most likely to individuals that can not get them any kind of other means and to individuals whose scheduled investment is in fact much less, according to the Federal Reserve, than the ordinary mean internet well worth of all American families in 2007. Let me expand on among my observations.


My quote based upon the financiers' environment-friendly card applications filed 2 years after the very first financial investment-- these are the strong ones that stay and are authorized. This is 2009-- was that they had concerning $191 million validated-- that is my estimate. USCIS does not supply the kind of data that we might use on this.


For every $100 of boosted foreign investment that year, the EB program added one penny. Under a far more wobbly analytical base, the initial applications of potential immigrant investors, USCIS is informing reporters that the degree of 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 look ahead to your remarks and questions. [The prepared statement of David North looks like an entry for the record.] Chairman Leahy. Thank you. 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 worked as Principal Guidance of the United States Citizenship and Immigration Providers from July 2004 until November 2006, the year in which he was Performing Supervisor, and then Acting Replacement Supervisor. He has worked extensively with the EB-5 program in exclusive method. He was elected, as I comprehend, vice head of state of the Association to Spend in U.S.A., the national click here industry organization of local.


Divine, we are pleased to have you right here. Please proceed, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, PURCHASE THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At a lot of, if all 10,000 ports were used, it would be 1 percent of the migration annually to the United States. It is not near that yet, but it is expanding and getting towards that. Specifically as USCIS, the agency that manages the program, has been making the rules more clear and the processes extra rational and clear for the people who are arranging financial investments and for the investors who are spending, even more individuals have actually agreed and able to place effort and cash into the process to locate good jobs and establish them, and after that a lot more investors have agreed to spend their money and take the risk and utilize the money to develop the work that is the point of the program.

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These projects do not wait about forever, and USCIS comprehends that and are trying to speed up the program, speed the procedure - EB5 Regional Center Program. That does not suggest that they are relaxing their scrutiny, and, in fact, they prepare to refute applications that are not certifying. And they do so, as was stated


The local facility part of the program is not. It becomes part of an appropriations costs that was passed in 1992, and ever since that program has 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 day of expiry in September.


The process takes an excellent while to develop a job and after that to obtain the financiers accepted. And they do not want their money streaming via till they have actually been accepted. And the specter of the expiration of this Regional Facility Program in September is currently dissuading the advancement of jobs.

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I wish to make clear that the Regional Facility Program is not the like the half-million-dollar thing. The concept of half a million or a million is a feature of the regular EB-5 regulation that is part of the code. It simply is a reality that the majority of the regional centers that are merging investments have set those instead of high joblessness or in rural locations where half- million-dollar investments are permitted, and that makes feeling.