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The program is placed in a really weird and non-helpful bureaucratic location for the excitement of global financial investment in the United States. We are offering away as well much for also tiny of an investment.

The regional facilities, with their half-million schemes, essentially damaged the much more practical million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they do in Australia, need to have to do with creating service entities, not passive financial investments. It needs to be regarding producing actual work, not specify computations regarding the indirect creation of tasks, which is currently part of the legislation.


Maybe that is just one of the reasons why it has failed time after time to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is too full of middlemen, both public and exclusive. The program has greater than its share of scandals, which I will certainly get right into later if anyone is interested.


This is a company that loves to say yes to candidates, however as the table in my testament shows, USCIS police officers have far more trouble with EB-5 applications than others. I assume that is something that nobody has actually truly discussed much. EB5 Regional Center Program. There are high rates of inner rejections in this program and completely factor

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Seventh, in this program visas go to people that could not obtain them any type of other method and to individuals whose organized financial investment is actually less, according to the Federal Book, than the average mean internet worth of all American households in 2007. Let me broaden on among my monitorings.


My price quote based upon the capitalists' environment-friendly card applications submitted 2 years after the initial investment-- these are the solid ones that stay and are approved. This is 2009-- was that they had regarding $191 million validated-- that is my price quote. USCIS does not provide the type of data that we could make use of on this.


So for every $100 of increased international investment that year, the EB program added one penny. Under a a lot more wobbly statistical base, the initial applications of prospective immigrant investors, USCIS is telling reporters that the level of investment in the just-concluded year was regarding $1.2 billion. Allow us approve that.

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Thanks for listening to me. I look forward to your remarks and concerns. [The prepared statement of David North shows up as an entry 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 acted as Chief Guidance of the United States Citizenship and Immigration Providers from July 2004 up until November 2006, the year in which he was Acting Director, and after that Performing Replacement Supervisor. He has worked thoroughly with the EB-5 program secretive method. He was elected, as I comprehend, vice head of state of the Organization to Purchase U.S.A., the national sector organization of local centers.


Divine, we are pleased to have you below. Please proceed, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, PURCHASE THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At most, if all 10,000 slots were utilized, it would be 1 percent of the immigration yearly to the USA. It is not near that yet, yet it is growing and getting toward that. Especially as USCIS, the agency that looks after the program, has actually been making the rules clearer and the processes a lot more logical and clear for the individuals that are arranging investments and for the financiers that are spending, even more people have agreed and able to place effort and money right into the process to discover great jobs and develop them, and afterwards more capitalists have actually been eager to invest their cash and take the risk and make use of the money to produce the work that is the factor of the program.

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These jobs do not wait about for life, and USCIS comprehends that and are trying to speed the program, speed up the procedure EB5 Regional Center Program - EB5 Regional Center Program. That does not suggest that they are relaxing their scrutiny, and, actually, they prepare to reject applications that are not certifying. And they do so, as was pointed out

The local center component of the program is not. It is component of an appropriations costs that was enacted in 1992, and ever since that program has actually been expanded 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 expiration in September.


The process takes a great while to develop a project and after that to obtain the investors accepted. And they do not want their cash moving through up until they have been approved. And the specter of the expiration of this Regional Facility Program in September is already discouraging the growth of tasks.

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I wish to make clear that the Regional Facility Program is not the exact same as the half-million-dollar point. The idea of half a million or a million is a function of the regular EB-5 law that belongs to the code. It simply is a fact that the majority of the regional facilities that are merging financial investments have set those in areas of high joblessness or in rural areas where half- million-dollar investments are allowed, which makes good sense.