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The program is placed in an extremely strange and non-helpful governmental area for the excitement of global investment in the United States. We are giving away too much for too small of an investment.


The regional facilities, with their half-million systems, basically damaged the a lot more practical million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they carry out in Australia, must have to do with producing company entities, not easy investments. It ought to be regarding developing real jobs, not elaborate estimations regarding the indirect production of work, which is now component of the regulation.


Possibly that is among the reasons it has failed every year to reach the legislative goal of 10,000 investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is as well loaded with intermediaries, both public and personal. The program has even more than its share of scandals, which I will enter into later on if anybody is interested.


This is a company that enjoys to say yes to applicants, however as the table in my statement reveals, USCIS officers have a lot more trouble with EB-5 applications than others. I think that is something that nobody has truly spoken about a lot. EB5 Regional Center Program. There are high rates of interior rejections in this program and for good factor

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Seventh, in this program visas go to people who might not obtain them differently and to individuals whose planned financial investment is really much less, according to the Federal Reserve, than the ordinary mean total assets of all American households in 2007. Let me expand on among my observations.


My price quote based on the capitalists' permit applications submitted 2 years after the first investment-- these are the strong ones that continue to be and are accepted. This is 2009-- was that they had regarding $191 million confirmed-- that is my quote. USCIS does not give the type of data that we can make use of on this.


So for each $100 of enhanced international financial investment that year, the EB program contributed one dime. Under a much more shaky analytical base, the first applications of prospective immigrant financiers, USCIS is informing reporters that the level of financial investment in the just-concluded year was about $1.2 billion. Allow us accept that.

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Thank you for listening to me. I expect your comments and questions. [The ready statement of David North appears as 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 migration technique team.




Divine functioned as Principal Advice of the USA Citizenship and Immigration Providers from July 2004 up until November 2006, the year in which he was Acting Supervisor, and after that Acting Deputy Director. He has actually functioned extensively with the EB-5 program secretive practice. He was elected, as I recognize, vice president of the Organization to Buy U.S.A., the national sector association of regional centers.


Divine, we are thrilled to have you here. Please go ahead, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, BUY THE USA (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, basics and others. Thank you for having me.


At the majority of, if all 10,000 ports were used, it would be 1 percent of the immigration yearly to the United States. It is not near that yet, however it is growing and obtaining toward that. Especially as USCIS, the firm that supervises the program, has been making the policies more clear and the procedures more logical and clear for the individuals that are arranging financial investments and for the financiers who are spending, even more people have actually agreed and able to put initiative and cash into the procedure to find great tasks and create them, and after that a lot try this site more capitalists have been eager to spend their cash and take the danger and utilize the cash to develop the work that is the factor of the program.

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These tasks do not linger permanently, and USCIS comprehends that and are trying to speed up the program, speed up the process - EB5 Regional Center Program. That does not mean that they are unwinding their examination, and, in fact, they are prepared to deny applications that are not certifying. And they do so, as was mentioned


The regional center component of the program is not. It becomes part of an appropriations bill that was established in 1992, and ever since that program has been extended five times for 19 years. It is time for it to be irreversible, and it requires to be done currently and not nearer to the date click here for more info of expiration in September.


The process takes a great while to function up a project and after that to obtain the capitalists approved. And they do not want their money streaming with up until they have been authorized. And the specter of the expiry of this Regional Facility Program in September is currently inhibiting the growth of tasks.

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I wish to clarify that the Regional Facility Program is not the same as the half-million-dollar point. The concept of half a million or a million is a feature of the routine EB-5 legislation that becomes part of the code. It just is a fact that most of the regional centers that are merging financial investments have set those in areas of high joblessness or in backwoods where half- million-dollar financial investments are allowed, and that makes good sense.