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The program is put in an extremely odd and non-helpful governmental place for the stimulation of global financial investment in the United States. Second, its range is all wrong. We are giving away excessive for as well small of an investment. Additionally, increasing endeavor funding half a million dollars a tranche is, to claim the least, inefficient.

The regional centers, with their half-million systems, basically damaged the extra practical million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, should be regarding developing business entities, not passive financial investments. It ought to have to do with developing actual tasks, not specify computations about the indirect production of tasks, which is now part of the legislation.

Probably that is among the reasons that it has fallen short year after year to reach the legal objective of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is too full of intermediaries, both public and private. The program has greater than its share of scandals, which I will certainly enter later on if any person is interested.

This is an agency that enjoys to claim yes to candidates, yet as the table in my testament reveals, USCIS police officers have a lot a lot more difficulty with EB-5 applications than others. I think that is something that nobody has actually actually spoken about much. 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 who could not obtain them differently and to people whose organized investment is in fact much less, according to the Federal Book, than the average mean web well worth of all American households in 2007. Allow me broaden on among my observations.

My price quote based on the investors' copyright 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 about $191 million verified-- that is my price quote. USCIS does not offer the sort of data that we might make use of on this.

For every $100 of boosted foreign financial investment that year, the EB program added one cent. Under a far more shaky statistical base, the initial applications of would-be immigrant investors, USCIS is telling reporters that the level of investment in the just-concluded year had to do with $1.2 billion. Let us accept that.

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Thanks for paying attention to me. I expect your remarks and concerns. [The prepared statement of David North looks like an entry 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 immigration practice group.


Divine functioned as Chief Counsel of the USA Citizenship and Migration Solutions from July 2004 till November 2006, the year in which he was Acting Director, and then Performing Replacement Supervisor. He has actually worked extensively with the EB-5 program secretive method. He was elected, as I recognize, vice president of the Association to Invest in U.S.A., the national sector organization of regional.

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. Thank you, Mr. Chairman, Legislator Grassley, and others.

At many, if all 10,000 slots were utilized, it would be 1 percent of the migration each year to the USA. It is not near that yet, yet it is expanding and obtaining towards that. Particularly as USCIS, the agency that supervises the program, has been making the guidelines clearer and the processes extra sensible and clear for individuals that are arranging financial investments and for the capitalists that are spending, even more individuals have actually been eager and able to place check that initiative and cash right into the procedure to locate good jobs and establish them, and after that extra investors have agreed to spend their money and take the risk and make use of the money to develop the view it now work that is the factor of the program.

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These projects do not wait around for life, and USCIS recognizes that and are trying to speed up the program, speed up the process - EB5 Regional Center Program. That does not indicate that they are relaxing their examination, and, in fact, they prepare to reject applications that are not certifying. And they do so, as was pointed out

The regional facility component of the program is not. It is component of an appropriations costs that was enacted in 1992, and considering that then that program has actually been expanded five 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 procedure takes an excellent while to function up a task and after that to click for more info obtain the investors approved. And they do not want their money flowing with up until they have been authorized. And the specter of the expiration of this Regional Facility Program in September is currently discouraging the development of projects.

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I want to clear up that the Regional Center Program is not the like the half-million-dollar point. The idea of half a million or a million is a function of the regular EB-5 regulation that is part of the code. It just is a reality that most of the regional centers that are merging investments have established those in locations of high unemployment or in country locations where half- million-dollar financial investments are enabled, and that makes sense.

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