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The program is put in an extremely strange and non-helpful administrative area for the stimulation of worldwide financial investment in the United States. Second, its scale is all incorrect. We are providing away as well much for too small of an investment. Additionally, raising financial backing fifty percent a million bucks a tranche is, to say the least, ineffective.

The local facilities, with their half-million schemes, essentially damaged the extra reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they do in Australia, ought to be about producing organization entities, not passive investments. It should have to do with creating genuine tasks, not elaborate calculations regarding the indirect creation of work, which is currently part of the regulations.

Maybe that is one of the reasons that it has fallen short time after time to reach the legislative objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is too loaded with intermediaries, both public and private. The program has even more than its share of scandals, which I will certainly enter into later if anyone is interested.

This is a firm that likes to claim yes to applicants, but as the table in my testimony shows, USCIS policemans have a lot more problem with EB-5 applications than others. I assume that is something that nobody has actually actually spoken about a lot. EB5 Regional Center Program. There are high rates of interior rejections in this program and for great factor

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Seventh, in this program visas most likely to individuals that can not get them any other method and to people whose planned financial investment is actually much less, according to the Federal Reserve, than the ordinary mean internet well worth of all American family members in 2007. Let me broaden on one of my monitorings.

My quote based on the investors' permit applications filed 2 years after the initial financial investment-- these are the solid ones that continue to be and are approved. This is 2009-- was that they had regarding $191 million verified-- that is my quote. USCIS does not give the kind of data that we can use on this.

So for every $100 of raised international investment that year, the EB program added one dime. Under a a lot more unsteady analytical base, the initial applications of would-be immigrant capitalists, USCIS is telling journalists that the degree of investment in the just-concluded year was regarding $1.2 billion. Let us accept that.

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Thanks for paying attention to me. I eagerly anticipate your remarks and questions. [The ready statement of David North shows up as an entry for the document.] Chairman Leahy. Thanks. Our following witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's immigration technique group.


Divine functioned as Chief Counsel of the USA Citizenship and Immigration Solutions from July 2004 up until November 2006, the year in which he was Acting Supervisor, and check that after that Performing Deputy Director. He has actually functioned thoroughly with the EB-5 program in personal technique. He was chosen, as I comprehend, vice head of state of the Organization to Spend in United States, the national industry organization of regional facilities.

Divine, we are pleased to have you here. Please go on, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.

At many, if all 10,000 slots were used, it would certainly be 1 percent of the migration each year to the USA. It is not near that yet, however it is expanding and getting toward that. Especially as USCIS, the company website here that manages the program, has been making the rules more clear and the procedures a lot more logical and clear for the people who are organizing financial investments and for the capitalists that are investing, even more individuals have actually agreed and able to put effort and money right into the process to locate good projects and establish them, and after that extra financiers have been ready to spend their cash and take the threat and use the cash to produce the tasks that is the factor of the program.

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These jobs do not linger forever, and USCIS comprehends that and are attempting to speed up the program, speed the process - EB5 Regional Center Program. That does not mean that they are unwinding their analysis, and, in fact, they are ready to refute applications that are not qualifying. And they do so, as was stated

The local facility component of the program is not. It belongs to an appropriations expense that was established in see this page 1992, and ever since 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 date of expiry in September.

The process takes an excellent while to develop a project and afterwards to get the financiers approved. And they do not desire their money flowing with until they have actually been approved. And the specter of the expiration of this Regional Center Program in September is already discouraging the advancement of tasks.

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I would love to clarify that the Regional Facility Program is not the like the half-million-dollar point. The concept 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 reality that a lot of the local facilities that are merging investments have set those in locations of high joblessness or in backwoods where fifty percent- million-dollar financial investments are allowed, and that makes feeling.

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