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The program is positioned in an extremely weird and non-helpful governmental area for the stimulation of worldwide financial investment in the United States. We are providing away too much for as well little of a financial investment.

The local facilities, with their half-million schemes, essentially damaged the extra reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they perform in Australia, ought to have to do with developing organization entities, not easy investments. It must have to do with creating actual work, not elaborate computations about the indirect production of jobs, which is now part of the legislation.


Perhaps that is among the reasons it has stopped working every year to get to the legislative goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is as well full of middlemen, both public and exclusive. The program has more than its share of scandals, which I will get involved in later on if anybody is interested.


This is a firm that loves to say yes to applicants, but as the table in my testament shows, USCIS police officers have a lot more difficulty with EB-5 applications than others. I assume that is something that no one has really discussed a lot. EB5 Regional Center Program. There are high rates of interior rejections in this program and permanently reason

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Seventh, in this program visas go to people that can not get them differently and to individuals whose scheduled financial investment is actually less, according to the Federal Get, than the average mean internet well worth of all American households in 2007. Let me expand on among my observations.


My price quote based on the capitalists' eco-friendly card applications submitted 2 years after the very first financial investment-- these are the solid ones that continue to be and are approved. This is 2009-- was that they had concerning $191 million validated-- that is my price quote. USCIS does not provide the sort of data that we might use on this.


For every $100 of enhanced international investment that year, the EB program added one penny. Under a far more shaky statistical base, the initial applications of potential immigrant capitalists, USCIS is telling reporters that the level of financial 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 expect your comments and questions. [The prepared statement of David North looks like a submission for the record.] 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 migration practice group.

Divine acted as Principal Guidance of the United States Citizenship read more and Migration Services from July 2004 up until November 2006, the year in which he was Performing Director, and afterwards Performing Replacement Director. He has actually functioned thoroughly with the EB-5 program secretive method. He was chosen, as I understand, vice president of the Organization to Spend in USA, the nationwide industry organization of regional centers.


DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At the majority of, if all 10,000 ports were made use of, it would be 1 percent of the migration annually to the United States. It is not near that yet, but it is expanding and obtaining toward that. Particularly as USCIS, the agency that oversees the program, has been making the policies clearer and the procedures more reasonable and clear for the people that are arranging investments and for the investors that are spending, more people have been willing and able to put effort and money into the process to locate excellent tasks and establish them, and afterwards extra capitalists have wanted to invest their cash and take the risk and make use of the cash to produce the work that is the point of the program.

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These projects do not wait about forever, and USCIS recognizes that and are trying to speed 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 deny applications that are not certifying. And they do so, as was stated

The regional center part of the program is not. It becomes part of an appropriations expense that was passed in 1992, and given that then that program has actually been expanded 5 times for 19 years. It is time for it to be permanent, and it needs to be done now and not nearer to the day of expiry in September.


The process takes a good while to function up a project and after that to obtain the capitalists approved. And they do not desire their money moving 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 projects.

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I wish to clear up that the Regional Facility Program is not the exact same as the half-million-dollar thing. The concept of half a million or a million is a function of the regular EB-5 law that becomes part of the code. It simply is a fact that a lot of the local centers that are merging financial investments have set those instead of high unemployment or in backwoods where half- million-dollar financial investments are enabled, which makes sense.