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The program is placed in a very weird and non-helpful governmental location for the excitement of global financial investment in the United States. We are giving away as well much for as well little of a financial investment.


The regional facilities, with their half-million systems, basically undercut the much more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they perform in Australia, must have to do with creating service entities, not easy financial investments. It ought to have to do with creating genuine work, not clarify estimations concerning the indirect creation of jobs, which is now part of the regulations.


Maybe that is just one of the factors why it has actually fallen short time after time to get to the legal objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is too filled up with intermediaries, both public and personal. The program has greater than its share of scandals, which I will certainly enter later on if anybody is interested.


This is an agency that likes to state yes to applicants, however as the table in my testimony shows, USCIS policemans have far more trouble with EB-5 applications than others. I think that is something that no one has truly discussed a lot. EB5 Regional Center Program. There are high rates of inner rejections in this program and completely factor

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Seventh, in this program visas go to people who might not obtain them any other method and to individuals whose planned financial investment is really less, according to the Federal Book, than the typical mean net worth of all American family members in 2007. Let me increase on among my monitorings.


My quote based on the financiers' eco-friendly card applications filed 2 years after the initial investment-- these are the strong ones that continue to be and are approved. This is 2009-- was that they had regarding $191 million verified-- that is my quote. USCIS does not offer the sort of information that we could use on this.


So for every single $100 of raised international financial investment that year, the EB program added one cent. Under a much extra unsteady statistical base, the initial applications of prospective immigrant investors, USCIS is telling journalists that the level of investment in the just-concluded year had to do with $1.2 billion. Let us approve that.

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Thanks for listening to me. I eagerly anticipate your comments and concerns. [The prepared statement 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 firm's immigration method team.




Divine acted as Principal Counsel of the United States Citizenship and Migration Services from July 2004 until November 2006, the year in which he was Acting Director, and after that Performing Deputy Supervisor. He has actually worked thoroughly with the EB-5 program in private technique. He was chosen, as I recognize, vice head of state of the Organization to Invest in USA, the nationwide sector association of local.


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


At the majority of, if all 10,000 slots were used, it would be 1 percent of the migration annually to the United States. It is not near that yet, however it is growing and getting toward that. Particularly as USCIS, Recommended Reading the company that supervises the program, has been making the policies more clear and the procedures a lot more reasonable and clear for the people who are arranging financial investments and for the financiers who are investing, more people have actually agreed and able to put initiative and money right into the process to locate good tasks and develop them, and after that much more capitalists have agreed to spend their money and take the threat and make use of the cash to develop the work that is the point of the program.

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These tasks do not wait around forever, and USCIS recognizes that and are attempting to speed the program, speed up the procedure - EB5 Regional Center Program. That does not indicate that they are unwinding their analysis, and, as a matter of fact, they prepare to refute applications that are not qualifying. And they do so, as was discussed


The regional facility part of the program is not. It becomes part of an appropriations bill that was established in 1992, and ever since that program has been prolonged five 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 Visit Website of expiry in September.


The procedure takes an excellent while to develop a project and after that to obtain the investors accepted. And they do not want their cash moving via up until they have been accepted. And the specter of the expiry of this Regional Facility Program in September is already dissuading the advancement of tasks.

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I would such as to make clear 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 regulation that is component of the code. It simply is a fact that the majority of the investigate this site regional facilities that are pooling investments have set those instead of high unemployment or in backwoods where half- million-dollar financial investments are enabled, and that makes feeling.