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The program is placed in a really weird and non-helpful bureaucratic area for the stimulation of international financial investment in the United States. We are giving away too much for as well tiny of an investment.


The regional facilities, with their half-million schemes, basically damaged the more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they do in Australia, need to be concerning developing organization entities, not easy financial investments. It should have to do with creating genuine tasks, not specify computations regarding the indirect production of jobs, which is currently part of the legislation.


Possibly that is among the reasons that it has fallen short year after year to reach the legal objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is also full of intermediaries, both public and private. The program has greater than its share of scandals, which I will certainly get involved in later on if any person is interested.


This is a firm that loves to claim yes to candidates, but as the table in my statement reveals, USCIS police officers have much more problem with EB-5 applications than others. I assume that is something that nobody has actually spoken around much. EB5 Regional Center Program. There are high rates of internal denials in this program and forever reason

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Seventh, in this program visas go to individuals that could not obtain them differently and to people whose organized investment is actually less, according to the Federal Book, than the typical mean net well worth of all American family members in 2007. Let me increase on among my monitorings.


My estimate based upon the investors' copyright applications submitted 2 years after the very first investment-- these are the solid ones that remain and are approved. This is 2009-- was that they had about $191 million verified-- that is my price quote. USCIS does not supply the kind of information that we might use on this.


So for every single $100 of boosted foreign investment that year, the EB program added one penny. Under a a lot more unsteady statistical base, the preliminary applications of prospective immigrant investors, USCIS is telling reporters that the degree of financial investment in the just-concluded year was concerning $1.2 billion. Let us accept that.

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Thank you for paying attention to me. I expect your comments and inquiries. [The ready statement of David North shows up as a submission for the record.] Chairman Leahy. Thank you. go to this website Our next witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's migration method team.




Divine acted as Chief Advice of the United States Citizenship and Migration Services from July 2004 till November 2006, the year in which he was Acting Director, and then Acting Deputy Director. He has functioned extensively with the EB-5 program in personal practice. He was chosen, as I comprehend, vice head of state of the Association to Buy USA, the national sector association of regional facilities.


Divine, we are thrilled to have you here. Please go in advance, sir. STATEMENT 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. Thanks, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At most, if all 10,000 slots were made use of, it would certainly be 1 percent of the immigration each year to the United States. It is not near that yet, but here it is growing and obtaining toward that. Especially as USCIS, the firm that looks after the program, has been making the rules clearer and the processes more reasonable and clear for the people that are organizing investments and for the investors that are spending, more people have wanted and able to put effort and cash right into the procedure to discover excellent tasks and establish them, and afterwards much more financiers have actually wanted to invest their cash and take the danger and make use of the cash to develop the tasks that is the point of the program.

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These tasks do not wait about for life, and USCIS comprehends that and are attempting to speed up the program, speed the procedure - EB5 Regional Center Program. That does not indicate that they are unwinding their examination, and, as a matter of fact, they are all set to reject applications that are not qualifying. And they do so, as was stated


The local facility part of the program is not. It becomes part of an appropriations bill that was passed in 1992, and ever since that program has been expanded five times for 19 years. It is time for it to be permanent, and it needs to be done now and not nearer to the date of expiration in September.


The procedure takes an excellent while to develop visit this website a task and afterwards to obtain the investors approved. And they do not want their money flowing via up until they have actually been approved. And the specter of the expiry of this Regional Center Program in September is already discouraging the development of projects.

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I wish to clear up 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 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 set those instead of high unemployment or in rural locations where half- million-dollar financial investments are allowed, which makes good sense.