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The program is placed in a really strange and non-helpful administrative area for the stimulation of international financial investment in the United States. We are providing away too much for too tiny of an investment.


The local facilities, with their half-million plans, basically undercut the more sensible 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 must be concerning producing genuine work, not clarify estimations about the indirect development of work, which is now component of the regulation.


Probably that is one of the reasons why it has stopped working time after time to reach the legal objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is too loaded with intermediaries, both public and exclusive. The program has greater than its share of rumors, which I will certainly get involved in later if any person is interested.


This is a firm that loves to say yes to applicants, but as the table in my testimony reveals, USCIS officers have far more problem with EB-5 applications than others. I believe that is something that no one has actually truly discussed a lot. EB5 Regional Center Program. There are high rates of internal denials in this program and for good factor

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Seventh, in this program visas most likely to individuals who can not get them any various other method and to individuals whose organized investment is in fact less, according to the Federal Get, than the typical mean net worth of all American families in 2007. Allow me expand on one of my monitorings.


My quote based on the capitalists' permit applications submitted 2 years after the first financial investment-- these are the solid ones that continue to be and are accepted. This is 2009-- was that they had about $191 million validated-- that is my estimate. USCIS does not give the type of information that we could make use of on this.


For every $100 of raised foreign investment that year, the EB program contributed one cent. Under a far more unsteady analytical base, the first applications of potential immigrant financiers, USCIS is informing journalists that the level of financial investment in the just-concluded year was regarding $1.2 billion. Let us approve that.

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Thanks for paying attention to me. I anticipate your remarks and concerns. [The prepared statement of David North appears as a submission for the document.] Chairman Leahy. Thank you. 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 go to my blog migration method team.




Divine acted as Chief Advice of the USA Citizenship and Immigration Services from July 2004 till November 2006, the year in which he was Acting Director, and after that Performing Deputy Director. He has functioned extensively with the EB-5 program secretive method. He was elected, as I understand, vice president of the Organization to Purchase USA, the nationwide market organization of local centers.


DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At a lot of, if all 10,000 ports were utilized, it would certainly be 1 percent of the migration each year to the United States. It is not near that yet, yet it is growing and obtaining towards that. Particularly as USCIS, the company that oversees the program, has been making the guidelines clearer and the procedures more reasonable and clear for the individuals that are arranging financial investments and for the capitalists who are investing, more people have been prepared and able to put initiative and cash right into the procedure to find great projects and establish them, and afterwards extra investors have been eager to spend their money and take the risk and use the cash to develop Extra resources 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 the program, speed the process - EB5 Regional Center Program. That does not check mean that they are relaxing their analysis, and, actually, they prepare to deny applications that are not certifying. And they do so, as was discussed


The local facility component of the program is not. It becomes part of an appropriations costs that was established in 1992, and considering that then that program has actually been expanded 5 times for 19 years. It is time for it to be irreversible, and it requires to be done currently and not nearer to the day of expiry in September.


The procedure takes a great while to develop a task and afterwards to get the capitalists accepted. And they do not desire their money moving with up until they have actually been approved. And the specter of the expiry of this Regional Facility Program in September is already inhibiting the development of projects.

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I wish to clarify that the Regional Facility Program is not the like the half-million-dollar thing. The idea of half a million or a million is a feature of the routine EB-5 law that becomes part of the code. It simply is a reality that the majority of the regional facilities that are merging investments have actually established those instead of high joblessness or in rural locations where fifty percent- million-dollar investments are permitted, and that makes feeling.