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Initially, the program is positioned in a very strange and non-helpful administrative location for the excitement of worldwide financial investment in the USA. Second, its range is all incorrect. We are distributing also much for too little of a financial investment. Further, increasing venture funding fifty percent a million dollars a tranche is, to say the least, inefficient.


The local centers, with their half-million schemes, basically undercut the a lot more practical million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they do in Australia, need to be concerning producing company entities, not passive investments. It should have to do with creating actual work, not clarify calculations regarding the indirect creation of tasks, which is currently component of the regulations.


Probably that is one of the factors why it has actually stopped working every year to reach the legal objective of 10,000 investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is too loaded with intermediaries, both public and personal. The program has more than its share of scandals, which I will certainly enter into later if any person is interested.


This is an agency that enjoys to claim yes to applicants, but as the table in my statement shows, USCIS police officers have far more trouble with EB-5 applications than others. I believe that is something that nobody has actually discussed 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 go to individuals that could not get them any kind of other method and to individuals whose organized financial investment is actually much less, according to the Federal Book, than the ordinary mean net well worth of all American family members in 2007. Let me expand on one of my observations.


My quote based on the capitalists' permit applications filed 2 years after the initial investment-- these are the strong ones that remain and are authorized. This is 2009-- was that they had concerning $191 million validated-- that is my price quote. USCIS does not supply the type of data that we might make use of on this.


So for each $100 of increased international investment that year, the EB program added one cent. Under a much more shaky statistical base, the first applications of would-be immigrant capitalists, USCIS is telling reporters that the level of investment in the just-concluded year was about $1.2 billion. Let us approve that.

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Thanks for listening to me. I look forward to your remarks and questions. [The prepared statement of David North looks like a submission for the document.] Chairman Leahy. Thanks. 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 method group.




Divine worked as Chief Advice of the United States Citizenship and Immigration Providers from July 2004 till November 2006, the year in which he was Acting Director, and then Acting Deputy Supervisor. He has actually worked thoroughly with the EB-5 program in personal method. He was chosen, as I recognize, vice president of the Organization to Spend in United States, the nationwide industry organization of regional.


Divine, we are thrilled to have you here. Please proceed, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, PURCHASE THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At most, if all 10,000 slots were utilized, it would be 1 percent of the migration each year to the United States. It is not near that yet, yet it is expanding and getting towards that. Particularly as USCIS, the firm that oversees the program, has been making the regulations clearer and the procedures much more rational and clear for the people who are arranging financial investments and for the investors that are spending, even more people have wanted and able to put effort and cash into the process to locate good projects and create them, and afterwards much more financiers have been ready to spend their money and take the threat and use the cash to produce the work that is the point of the program.

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These projects do not wait about permanently, and USCIS comprehends that and are trying to speed the program, speed up the process - EB5 Regional Center Program. That does not suggest that they are unwinding their scrutiny, and, in truth, they prepare to deny applications that are not qualifying. And they do so, as was pointed out


The regional facility part of the program is not. It becomes part of an appropriations costs that was established in 1992, and ever since that program has been prolonged 5 times for 19 years. It is time for it to be permanent, and it needs to be done currently and not nearer to the date of expiry in September.


The procedure takes a great while to develop a job and after that to get the financiers accepted. click here And they do not desire their money streaming via until they have been accepted. And the specter of the expiration of this Regional Facility Program in September is already inhibiting the development of tasks.

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I want to clarify that the Regional Center Program is not the like the half-million-dollar thing. The concept of half a million or a million is a function of the regular EB-5 legislation that is part of the code. It simply is a fact that the majority of the regional facilities that are merging investments have established those instead of high unemployment or in country locations where half- million-dollar financial investments are permitted, which makes good sense.