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The program is positioned in an extremely odd and non-helpful governmental area for the stimulation of international investment in the United States. Second, its scale is all wrong. We are handing out also much for also small of an investment. Additionally, elevating financial backing half a million dollars a tranche is, to say the least, inefficient.


The local centers, with their half-million systems, essentially damaged the a lot more practical million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, need to have to do with creating organization entities, not passive financial investments. It ought to be concerning producing real tasks, not specify computations concerning the indirect development of work, which is now component of the legislation.


Maybe that is one of the reasons that it has actually failed year after year to reach the legal goal of 10,000 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 even more than its share of rumors, which I will enter later on if any person is interested.


This is a company that loves to state yes to candidates, but as the table in my testament reveals, USCIS policemans have much more problem with EB-5 applications than others. I believe that is something that no one has actually really spoken about much. EB5 Regional Center Program. There are high rates of inner rejections in this program and completely reason

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


My price quote based upon the investors' permit applications filed 2 years after the very first investment-- these are the solid ones that continue to be and are approved. This is 2009-- was that they had regarding $191 million confirmed-- that is my quote. USCIS does not provide the kind of data that we can utilize on this.


So for each $100 of raised foreign investment that year, the EB program added one dime. Under a much extra shaky statistical base, the preliminary applications of potential immigrant investors, USCIS is informing reporters that the level of financial investment in the just-concluded year was regarding $1.2 billion. Allow us approve that.

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Thank you for paying attention to me. I anticipate your comments and questions. [The prepared declaration of David North looks like a submission for the document.] Chairman Leahy. Thanks. 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 Chief Guidance of the United States Citizenship and Immigration Services from July 2004 up until November 2006, the year in which he was Acting Director, and then Performing Deputy Director. He has actually functioned extensively with the EB-5 program secretive method. He was chosen, as I comprehend, vice head of state of the Association to Spend in U.S.A., the nationwide industry organization of regional.


Divine, we are thrilled 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 PRESIDENT, BUY THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At most, if all 10,000 ports were utilized, it would be 1 percent of the immigration every year to the United States. It is not near that yet, but it is growing and obtaining towards that. Specifically as USCIS, the company that looks after the program, has actually been making the policies clearer and the procedures more logical and clear for read more the individuals that are arranging financial investments and for the capitalists who are spending, more people have agreed and able to put effort and cash right into the procedure to discover excellent tasks and develop them, and then extra investors have wanted to invest their cash and take the risk and use the cash to produce the work that is the point of the program.

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These jobs do not wait around permanently, and USCIS comprehends that and are trying to speed the program, speed the process - EB5 Regional Center Program. That does not mean that they are unwinding their analysis, and, in reality, they prepare to reject applications that are not qualifying. And they do so, as was stated


The local facility component of the program is not. It becomes part of an appropriations expense that was established in 1992, and ever since that program has been expanded five times for 19 years. It is time for it to be long-term, and it requires to be done currently and not nearer to the date of expiry in September.


The process takes a great while to work up a task and then to obtain the capitalists approved. And they do not desire their cash flowing with till they have been accepted. And the specter of the expiry of this Regional Center Program in September is already preventing the advancement of tasks.

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I would love to clear up that the Regional Facility Program is not the like the half-million-dollar point. The concept of half a million or a million is a function of the routine EB-5 legislation that is component of the code. It just is a fact that many of the local facilities that are merging financial investments have actually established those in areas of high joblessness or in backwoods where half- million-dollar investments are permitted, which makes good sense.