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The program is put in a really weird and non-helpful bureaucratic location for the excitement of global investment in the United States. We are giving away too much for as well little of a financial investment.

The regional facilities, with their half-million schemes, basically damaged the a lot more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, need to be regarding creating service entities, not easy investments. It needs to be regarding creating actual jobs, not specify estimations regarding the indirect creation of work, which is now part of the legislation.

Maybe that is one of the reasons it has fallen short time after time to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is too full of middlemen, both public and exclusive. The program has more than its share of rumors, which I will enter into later if any person is interested.

This is a company that likes to say yes to applicants, yet as the table in my testimony reveals, USCIS policemans have a lot more difficulty with EB-5 applications than others. I assume that is something that nobody has actually actually spoken about much. EB5 Regional Center Program. There are high rates of inner rejections in this program and for good reason

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Seventh, in this program visas go to individuals who could not get them any kind of various other means and to individuals whose organized investment is in fact much less, according to the Federal Get, than the typical mean net worth of all American households in 2007. Let me expand on among my monitorings.

My estimate based on the capitalists' eco-friendly card 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 confirmed-- that is my quote. USCIS does not supply the type of data that we could make use of on this.

So for every single $100 of raised international financial investment that year, the EB program added one cent. Under a a lot more wobbly analytical base, the preliminary applications of would-be immigrant capitalists, USCIS is informing journalists that the level of financial investment in the just-concluded year had to do with $1.2 billion. Let us accept that.

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Thanks for paying attention to me. I look onward to your comments and inquiries. [The prepared declaration of David North looks like an entry for the document.] Chairman Leahy. Thanks. 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 practice group.


Divine served as Chief Guidance of the United States Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Acting Supervisor, and afterwards Acting Replacement Supervisor. He has functioned thoroughly with the EB-5 program in private practice. He was chosen, as I comprehend, vice president of the Organization to Invest in USA, the nationwide sector organization of regional facilities.

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

At the majority of, if all 10,000 slots were made use of, it would be 1 percent of the migration yearly to the USA. It is not near that yet, but it is growing and getting toward that. Specifically as USCIS, the agency that looks after the program, has been making the policies more clear and the processes a lot more rational and clear for individuals that are organizing investments and for the capitalists that are spending, more individuals have agreed and able to place effort and cash into the process to discover great projects and establish them, and then more financiers have more info agreed to spend their cash and take the danger and make use of the cash to create the tasks that is the factor of the program.

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These jobs do not linger for life, and USCIS recognizes that and are attempting to speed up the program, speed the process - EB5 Regional Center Program. That does not imply that they are relaxing their analysis, and, in fact, they prepare to deny applications that are not certifying. And they do so, as was mentioned

The local center component of the program is not. It belongs to an appropriations bill that was established in 1992, and ever since that program has been extended five times for 19 years. It is time for it to be permanent, and it requires to be done currently and not nearer to the date of expiry in September.

The process takes an excellent while to work up a task and after that to obtain the investors authorized. And they do not want their cash streaming via until they have been accepted. And the specter of the expiry of this Regional Facility Program in September is already inhibiting the development of projects.

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I wish 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 function of the normal EB-5 regulation that is part of the code. It just is a fact that many of the local facilities that are merging investments have established those in areas of high joblessness or in backwoods where fifty percent- million-dollar financial investments are permitted, and that makes feeling.

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