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The program is positioned in a really odd and non-helpful governmental location for the stimulation of worldwide financial investment in the United States. We are giving away also much for as well little of an investment.

The regional facilities, with their half-million plans, essentially undercut the more practical million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they perform in Australia, should be concerning producing company entities, not passive investments. It needs to have to do with creating actual tasks, not clarify calculations concerning the indirect production of tasks, which is now part of the regulation.


Maybe that is among the reasons it has fallen short year after 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 also filled up with middlemen, both public and personal. The program has greater than its share of scandals, which I will enter later if anybody is interested.


This is a firm that likes to claim yes to applicants, however as the table in my testament shows, USCIS policemans have a lot more difficulty with EB-5 applications than others. I assume that is something that no one has actually spoken about much. EB5 Regional Center Program. There are high rates of internal rejections in this program and completely reason

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Seventh, in this program visas most likely to people that might not get them differently and to people whose planned investment is really less, according to the Federal Reserve, than the average mean total assets of all American family members in 2007. Allow me increase on among my monitorings.


My quote based upon the financiers' permit applications filed 2 years after the first financial investment-- these are the strong ones that remain and are accepted. This is 2009-- was that they had concerning $191 million validated-- that is my price quote. USCIS does not supply the type of data that we could use on this.


So for every $100 of increased international financial investment that year, the EB program contributed one penny. Under a a lot more shaky analytical base, the initial applications of prospective immigrant investors, USCIS is telling journalists that the degree of investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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Thank you for paying attention to me. I look onward to your comments and concerns. [The ready declaration of David North looks like a submission for the record.] Chairman Leahy. Thank you. Our following 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 worked as Principal Advice of the United States Citizenship and Immigration Providers from July 2004 up until November 2006, the year in which he was Acting Supervisor, and then Acting Replacement Director. He has actually functioned extensively with the EB-5 program secretive practice. He was chosen, as I understand, vice head of state of the Association to Spend in U.S.A., the national market organization of local.


Divine, we are delighted to have you right here. Please go on, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY THE U.S.A. (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At the majority of, if all 10,000 ports were used, it would be 1 percent of the migration yearly to the USA. It is not near that yet, but it is expanding and obtaining toward that. Specifically as USCIS, the agency that manages the program, has been making the guidelines more clear and the processes extra sensible and clear for individuals that are organizing investments and for the capitalists that are spending, even more people have wanted and able to put effort and cash into the procedure to discover excellent projects and establish them, and after that more financiers have actually wanted to invest their money and take the danger and make use of the cash to create the jobs that is the point of the program.

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These tasks do not linger for life, and USCIS understands that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That does not indicate that they are relaxing their analysis, and, as a matter of fact, they prepare to refute applications that are not certifying. And they do so, as was stated

The local facility component of the program is not. It belongs to an appropriations bill 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 long-term, and it requires to be done now and not nearer to the day of expiry in September.


The process takes an excellent while to work up a task and after that to obtain the financiers accepted. And they do not want their cash moving via until they have actually been accepted. And the specter of the expiration of this Regional Center Program in September is currently dissuading the growth of projects.

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I wish to make clear 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 feature of the normal EB-5 regulation that belongs to the code. It simply is a fact that a lot of the local facilities that are merging financial investments have set those in areas of high unemployment website or in country locations where half- million-dollar investments are enabled, and that makes good sense.