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The program is put in an extremely weird and non-helpful administrative place for the stimulation of global investment in the United States. We are providing away as well much for as well tiny of an investment.

The local facilities, with their half-million plans, basically undercut the extra practical million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they do in Australia, must have to do with developing organization entities, not passive financial investments. It should be regarding producing real work, not clarify calculations concerning the indirect development of work, which is currently component of the legislation.


Maybe that is one of the reasons why it has failed every year to reach the legal objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is too full of middlemen, both public and exclusive. The program has even more than its share of scandals, which I will certainly get involved in later on if any person is interested.


This is a company that loves to state yes to applicants, but as the table in my testament reveals, USCIS police officers have a lot more difficulty with EB-5 applications than others. I think that is something that no one has truly spoken about much. EB5 Regional Center Program. There are high rates of interior denials in this program and forever reason

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Seventh, in this program visas most likely to people who can not get them any type of other means and to people whose organized investment is in fact less, according to the Federal Reserve, than the ordinary mean web worth of all American families in 2007. Allow me expand on one of my observations.


My estimate based on the capitalists' eco-friendly card applications submitted 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 concerning $191 million verified-- that is my price quote. USCIS does not offer the type of data that we can use on this.


For every $100 of boosted foreign financial investment that year, the EB program contributed one cent. Under a far more wobbly analytical base, the first applications of would-be immigrant investors, USCIS is informing journalists that the degree of investment in the just-concluded year was concerning $1.2 billion. Allow us accept that.

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Thank you for paying attention to me. I look ahead to your comments and inquiries. [The prepared declaration of David North looks like an entry for the document.] Chairman Leahy. Thanks. 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 immigration method team.

Divine functioned as Principal Advise of the United States Citizenship and Migration Providers from July 2004 up until November 2006, the year in which he was Performing Supervisor, and afterwards Acting Replacement Supervisor. He has actually functioned thoroughly with the Continued EB-5 program in personal method. He was elected, as I understand, vice president of the Association to Invest in USA, the nationwide sector association of regional.


Divine, we are thrilled 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 PRESIDENT, INVEST IN THE USA (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At the majority of, if all 10,000 slots were utilized, it would be 1 percent of the migration yearly to the USA. It is not near that yet, however it is growing and getting towards that. Especially as USCIS, the firm that looks after the program, has actually been making the rules more clear and the home procedures a lot more logical and clear for individuals who are arranging investments and for the capitalists who are spending, even more people have actually been prepared and able to place initiative and cash right into the process to discover excellent jobs and create them, and after that a lot more financiers have actually wanted to invest their cash and take the risk and use the cash to develop the tasks that is the factor of the program.

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These jobs do not linger permanently, and USCIS recognizes that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That does not imply that they are unwinding their analysis, and, as a matter of fact, they are all set to reject applications that are not certifying. And they do so, as was discussed

The local center from this source component of the program is not. It is part of an appropriations bill that was passed in 1992, and ever since that program has actually been expanded 5 times for 19 years. It is time for it to be irreversible, and it requires to be done now and not nearer to the day of expiry in September.


The procedure takes a great while to develop a job and afterwards to get the investors accepted. And they do not want their money flowing via until they have actually been approved. And the specter of the expiration of this Regional Center Program in September is already discouraging the advancement of tasks.

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I would love to make clear that the Regional Center Program is not the exact same as the half-million-dollar point. The concept of half a million or a million is a feature of the normal EB-5 law that belongs to the code. It simply is a reality that the majority of the regional facilities that are merging financial investments have actually set those instead of high joblessness or in rural areas where fifty percent- million-dollar investments are enabled, and that makes sense.