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The program is placed in a very weird and non-helpful bureaucratic location for the stimulation of international investment in the United States. Second, its scale is all wrong. We are handing out way too much for also little of an investment. Better, elevating endeavor resources fifty percent a million bucks a tranche is, to state the least, ineffective.


The regional facilities, with their half-million plans, basically undercut the much more practical million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, need to have to do with producing business entities, not passive investments. It must have to do with creating real work, not specify estimations about the indirect development of tasks, which is currently part of the legislation.


Perhaps that is one of the reasons why it has actually failed time after time to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is as well filled up with middlemen, both public and exclusive. The program has more than its share of detractions, which I will enter into later if anybody is interested.


This is a company that enjoys to say yes to candidates, but as the table in my testimony reveals, USCIS policemans have a lot more trouble with EB-5 applications than others. I think that is something that no one has actually actually spoken about much. EB5 Regional Center Program. There are high rates of internal rejections in this program and for good factor

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Seventh, in this program visas go to people that can not get them otherwise and to people whose organized investment is actually much less, according to the Federal Reserve, than the ordinary mean web worth of all American family members in 2007. Allow me expand on one of my observations.


My estimate based upon the investors' environment-friendly card applications filed 2 years after the initial investment-- these are the solid ones that stay and are accepted. This is 2009-- was that they had about $191 million validated-- that is my estimate. USCIS does not give the sort of data that we could use on this.


For every $100 of raised international financial investment that year, the EB program added one cent. Under a far more shaky statistical base, the preliminary applications of prospective immigrant capitalists, USCIS is telling reporters 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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Thank you for paying attention to me. I anticipate your remarks and concerns. [The prepared statement of David North looks like a submission for the document.] Chairman Leahy. Thank you. Our next 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 group.




Divine functioned as Chief Guidance of the United States Citizenship and Immigration Services from July 2004 up until November 2006, the year in which he was Performing Supervisor, and after that Performing Deputy Director. He has actually functioned thoroughly with the EB-5 program secretive method. He was chosen, as I recognize, vice head of state of the Association to Invest in USA, the national sector association of regional facilities.


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


At most, if all 10,000 ports were made use of, it would be 1 percent of the migration every year to the United States. It is not near that yet, yet it is growing and obtaining towards that. Specifically as USCIS, the firm that supervises the program, has actually been making the policies more clear and the processes a lot more reasonable and clear for the individuals who are organizing investments and for the capitalists that are investing, more individuals have been willing and able to put effort and cash into the procedure to locate great projects and create them, and afterwards extra investors have actually wanted to invest their cash and take the threat and make use of the cash to create the jobs that is the point of the program.

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These tasks do not linger forever, and USCIS comprehends that and are attempting to speed up the program, speed the procedure - EB5 Regional Center Program. That does not mean that they are relaxing their analysis, and, as a matter of fact, they prepare to reject applications that are not qualifying. And they do so, as was mentioned


The local center part of the program is not. It belongs to an appropriations expense that was established in 1992, and since then that program has been extended five times for 19 years. It is time for it to be irreversible, and it requires to be done now and not nearer to the day of expiry in September.


The procedure takes an excellent while to develop a task and afterwards to get the capitalists approved. And they do not want their money streaming through up until they have been accepted. And the specter of the expiry of this Regional Facility Program in September is currently discouraging the advancement of tasks.

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I want to clarify 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 feature of the regular EB-5 legislation that is part of the code. It simply is a fact that a lot of the local facilities that are pooling financial investments have actually established those in places of high unemployment or in backwoods where half- million-dollar investments are allowed, and that makes feeling.