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The program is put in an extremely weird and non-helpful administrative place for the excitement of worldwide investment in the United States. Second, its scale is all incorrect. We are distributing too much for also tiny of a financial investment. Even more, increasing venture resources fifty percent a million bucks a tranche is, to state the least, inefficient.


The regional facilities, with their half-million plans, basically damaged the a lot more practical million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they carry out in Australia, should be regarding producing organization entities, not passive investments. It ought to have to do with developing real work, not clarify calculations regarding the indirect creation of work, which is now component of the regulations.


Maybe that is just one of the reasons it has failed time after time to get to the legal objective of 10,000 investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is as well full of intermediaries, both public and private. The program has even more than its share of detractions, which I will certainly enter later if anybody is interested.


This is a firm that likes to say yes to candidates, however as the table in my testament shows, USCIS police officers have far more problem with EB-5 applications than others. I think that is something that no one has actually truly discussed a lot. EB5 Regional Center Program. There are high prices of interior rejections in this program and forever reason

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Seventh, in this program visas most likely to individuals that might not obtain them differently and to people whose planned investment is actually much less, according to the Federal Reserve, than the ordinary mean total assets of all American families in 2007. Let me expand on among my monitorings.


My quote based on the investors' permit applications filed 2 years after the initial investment-- these are the strong ones that remain and are authorized. This is 2009-- was that they had concerning $191 million confirmed-- that is my quote. USCIS does not offer the sort of information that we might utilize on this.


For every $100 of increased international financial investment that year, the EB program contributed one penny. Under a much more wobbly analytical base, the initial applications of potential immigrant investors, USCIS is informing reporters that the level of financial investment in the just-concluded year was concerning $1.2 billion. Let us accept that.

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Thanks for paying attention to me. I eagerly anticipate your comments and questions. [The prepared statement of David North appears as an entry 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 firm's migration technique group.




Divine functioned as Chief Advise of the USA Citizenship and Migration Services from July 2004 up until November 2006, the year in which he was Performing Supervisor, and then Performing Replacement Director. He has actually functioned extensively with the EB-5 program secretive technique. He was elected, as I recognize, vice president of the Association to Invest in USA, the national industry organization of regional.


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


At most, if all 10,000 ports were utilized, it would certainly be 1 percent of the immigration every year to the USA. It is not near that yet, but it is growing and getting towards that. Especially as USCIS, the company that looks after the program, has been making the regulations clearer and the processes more logical and clear for individuals that are arranging investments and for the investors who are spending, more people have actually wanted and able to place effort and money into the process to discover great jobs and develop them, and after that more investors have actually agreed to spend their money and take the risk and make use of the cash to develop the jobs that is the factor of the program.

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These tasks do not linger permanently, and USCIS recognizes that and are trying to speed up the program, speed up the process - EB5 Regional Center Program. That does not suggest that they are relaxing their scrutiny, and, actually, they prepare to refute great post to read applications that are not qualifying. And they do so, as was discussed


The regional center part of the program is not. It is component of an appropriations costs that was enacted in 1992, and because then that program has been extended 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 day of expiry in September.


The procedure takes a great while to work up a job and after that to obtain Learn More the financiers accepted. And they do not want their money flowing with up until they have been accepted. And the specter of the expiration of this Regional Center Program in September is currently site discouraging the growth of projects.

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I want to make clear that the Regional Facility Program is not the same as the half-million-dollar thing. The idea of half a million or a million is a feature of the routine EB-5 law that belongs to the code. It just is a reality that many of the local facilities that are merging financial investments have set those in places of high joblessness or in rural locations where half- million-dollar investments are enabled, which makes good sense.