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Initially, the program is positioned in a very strange and non-helpful bureaucratic location for the stimulation of global financial investment in the United States. Second, its scale is all incorrect. We are distributing as well much for also small of an investment. Additionally, increasing venture resources fifty percent a million dollars a tranche is, to state the least, ineffective.


The local centers, with their half-million systems, essentially undercut the much more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, ought to be regarding developing service entities, not easy investments. It ought to have to do with developing real tasks, not specify computations regarding the indirect creation of jobs, which is currently part of the legislation.


Perhaps that is among the reasons it has actually failed year after year to get to the legal goal of 10,000 investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is too loaded with middlemen, both public and private. The program has even more than its share of rumors, which I will certainly obtain into later on if anyone is interested.


This is a company that enjoys to say yes to applicants, but as the table in my testimony shows, USCIS policemans have a lot more trouble with EB-5 applications than others. I assume that is something that nobody has truly spoken about much. EB5 Regional Center Program. There are high rates of interior denials in this program and for excellent reason

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Seventh, in this program visas most likely to individuals who could not get them differently and to people whose scheduled financial investment is in fact much less, according to the Federal Book, than the typical mean total assets of all American households in 2007. Allow me expand on one of my monitorings.


My estimate based upon the investors' environment-friendly card applications filed 2 years after the first financial 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 kind of data that we can use on this.


So for every single $100 of enhanced international financial investment that year, the EB program contributed one dime. Under a far more unsteady statistical base, the first applications of prospective immigrant investors, USCIS is informing reporters that the level of investment in the just-concluded year was regarding $1.2 billion. Allow us approve that.

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Thanks for paying attention to me. I look onward to your comments and inquiries. [The ready statement of David North appears as an entry for the record.] Chairman Leahy. Thanks. Our next witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's immigration method group.




Divine worked as Chief Advice of the United States Citizenship and Migration Providers from July 2004 until November 2006, the year in which he was Acting Supervisor, and after that Acting Replacement Director. He has actually worked thoroughly with the EB-5 program secretive practice. He was chosen, as I comprehend, vice president of the Organization to Spend in USA, the national industry organization Read Full Report of regional.


Divine, we are happy to have you below. Please go in advance, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE United States (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At many, if all 10,000 my link ports were used, it would certainly be 1 percent of the migration annually to the United States. It is not near that yet, but it is expanding and getting towards that. Specifically as USCIS, the agency that looks after the program, has actually been making the policies more clear and the processes more reasonable and clear for the people that are organizing financial investments and for the investors that are spending, more individuals have wanted and able to put initiative and cash into the procedure to discover good projects and create them, and after that a lot more financiers have actually wanted to spend their money and take the danger and use the cash to create the tasks that is the factor of the program.

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These projects do not wait around forever, and USCIS understands that and are attempting to speed up the program, speed the procedure - EB5 Regional Center Program. That does not imply that they are relaxing their scrutiny, and, as a matter of fact, they are all set to deny applications that are not qualifying. And they do so, as was stated


The regional facility 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 prolonged 5 times for 19 years. It is time for it to be long-term, and it needs to be done now and not nearer to the date of expiry in September.


The procedure takes a good while to develop a project and afterwards to obtain the investors accepted. And they do not want their cash streaming through until this they have actually been authorized. And the specter of the expiry of this Regional Center Program in September is already discouraging the growth of tasks.

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I would love to make clear that the Regional Facility Program is not the same as the half-million-dollar point. The idea of half a million or a million is a function of the normal EB-5 law that is component of the code. It simply is a fact that many of the local facilities that are merging investments have actually set those instead of high joblessness or in backwoods where half- million-dollar financial investments are permitted, which makes sense.