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Initially, the program is put in a really strange and non-helpful administrative location for the stimulation of worldwide financial investment in the United States. Second, its range is all wrong. We are distributing also much for also tiny of an investment. Additionally, raising venture resources fifty percent a million bucks a tranche is, to claim the least, inefficient.


The regional centers, 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 whatsoever, as they carry out in Australia, should have to do with producing service entities, not passive financial investments. It must have to do with producing actual jobs, not specify calculations concerning the indirect development of jobs, which is currently component of the legislation.


Maybe that is just one of the reasons why it has stopped working year after year to get to the legal objective of 10,000 investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is too full of middlemen, both public and personal. The program has even more than its share of rumors, which I will enter later on if anyone is interested.


This is an agency that loves to state yes to candidates, yet as the table in my testimony reveals, USCIS police officers have far more trouble with EB-5 applications than others. I think that is something that nobody has truly discussed much. EB5 Regional Center Program. There are high rates of interior rejections in this program and forever reason

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Seventh, in this program visas go to individuals who can not obtain them differently and to individuals whose planned investment is really much less, according to the Federal Book, than the typical mean web worth of all American families in 2007. Let me increase on among my observations.


My price quote based on the capitalists' environment-friendly card applications submitted 2 years after the very first investment-- these are the strong ones that remain and are approved. This is 2009-- was that they had about $191 million validated-- that is my quote. USCIS does not offer the kind of information that we could make use of on this.


For every $100 of raised foreign financial investment that year, the EB program added one penny. Under a far more shaky analytical base, the first applications of would-be immigrant Homepage financiers, USCIS is informing reporters that the degree of financial investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thanks for paying attention to me. I anticipate your remarks and inquiries. [The prepared statement of David North looks like a submission for the document.] Chairman Leahy. Thank you. Our next witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's migration technique team.




Divine functioned as Chief Counsel of the United States Citizenship and Immigration Solutions from July 2004 till November 2006, the year in which he was Acting Director, and after that Acting Replacement Director. He has actually worked thoroughly with the EB-5 program in personal technique. He was elected, as I understand, vice president of the Association to Spend in U.S.A., the national market association of local.


Divine, we are thrilled to have you right here. Please proceed, 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, Legislator Grassley, and others. Thanks for having me.


At a lot of, if all 10,000 ports were utilized, it would be 1 percent of the migration each year to the United States. It is not near that yet, however it is growing and obtaining towards that. Specifically as USCIS, the company that supervises the program, has been making the policies more clear and the procedures much more logical and clear for the individuals that are organizing financial investments and for the capitalists that are spending, even more individuals have actually agreed and able to place initiative and cash right into the procedure to discover excellent jobs and develop them, and afterwards much more investors have agreed to spend their cash and take the danger and use the money to develop the work that is the point of the program.

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These jobs do not linger forever, and USCIS recognizes that and are trying to speed the program, speed up the procedure - EB5 Regional Center Program. That does not indicate that they are unwinding their analysis, and, actually, they prepare to reject applications that are not qualifying. And they Full Report do so, as was mentioned


The local center 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 irreversible, and it requires visit this site right here to be done now and not nearer to the date of expiration in September.


The procedure takes an excellent while to develop a task and afterwards to obtain the investors accepted. And they do not desire their cash moving through until they have been approved. And the specter of the expiry of this Regional Facility Program in September is currently discouraging the development of projects.

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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 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 truth that many of the regional centers that are merging financial investments have set those in locations of high joblessness or in rural locations where half- million-dollar investments are permitted, which makes feeling.