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The program is placed in an extremely weird and non-helpful governmental place for the stimulation of global investment in the United States. We are providing away too much for also tiny of a financial investment.

The local centers, with their half-million plans, basically damaged the a lot more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they carry out in Australia, need to be about developing business entities, not easy investments. It must have to do with creating real tasks, not specify calculations concerning the indirect development of jobs, which is currently part of the regulations.


Maybe that is one of the reasons that it has failed every year to get to the legal goal 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 even more than its share of scandals, which I will certainly obtain right into later if anybody is interested.


This is an agency that likes to say yes to candidates, yet as the table in my statement reveals, USCIS police officers have far more problem with EB-5 applications than others. I believe that is something that no one has truly talked about a lot. EB5 Regional Center Program. There are high rates of interior rejections in this program and for excellent factor

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Seventh, in this program visas most likely to people that could not get them any kind of various other way and to individuals whose planned investment is really much less, according to the Federal Reserve, than the typical mean net worth of all American households in 2007. Allow me increase on one of my monitorings.


My quote based upon the investors' environment-friendly card applications submitted 2 years after the very first investment-- these are the strong ones that continue to be and are approved. This is 2009-- was that they had about $191 million validated-- that is my price quote. USCIS does not supply the sort of information that we can use on this.


For every $100 of boosted international financial investment that year, the EB program added one dime. Under a far more wobbly statistical base, the initial applications of would-be 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 expect your comments and inquiries. [The prepared declaration of David North appears as a submission for the document.] Chairman Leahy. Thank you. Our following witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's migration practice group.

Divine offered as Principal Guidance of the United States Citizenship and Migration Services from July 2004 until November 2006, the year in which he was Performing Supervisor, and afterwards Performing Replacement Supervisor. He has actually worked extensively with the EB-5 program in personal method. He was chosen, as I recognize, vice president of the Organization to Buy U.S.A., the national industry organization of regional facilities.


Divine, we are pleased to have you 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, PURCHASE THE U.S.A. (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 utilized, it would be 1 percent of the migration yearly to the United States. It is not near that yet, but it is growing and obtaining towards that. Especially as USCIS, the agency that looks after the program, has actually been making the policies clearer and the procedures a lot more reasonable and clear for the people who are arranging investments and for the investors that are spending, more individuals have actually agreed and able to place initiative and money into the process to locate great tasks and establish them, and then a lot more financiers have wanted to spend their money and take the risk and make use of the cash to create the tasks that is the point of the program.

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These projects do not linger permanently, and USCIS understands that and are trying to speed up the program, speed the process - EB5 Regional Center Program. That does not suggest that they are relaxing their examination, and, as a matter of fact, they are prepared to refute applications that are not certifying. And they do so, as was discussed

The regional facility component of the program is not. It belongs to an appropriations costs that was passed in 1992, and given that then that program has actually been prolonged five times for 19 years. It is time for it to be permanent, and it requires to be done currently and not nearer to the day of expiry in September.


The process takes a good while to develop a task and afterwards to obtain the capitalists approved. And they do not want their cash moving via till they have been accepted. And the specter of the expiry of this Regional Facility Program in September is currently preventing the advancement of projects.

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I wish to clarify that the Regional Facility Program is not the like the half-million-dollar thing. website The idea of half a million or a million is a function of the normal EB-5 law that belongs to the code. It just is a fact that a lot of the local centers that are merging investments have actually set those in locations of high joblessness or in country areas where half- million-dollar financial investments are enabled, which makes good sense.