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The program is put in a really strange and non-helpful governmental area for the excitement of worldwide financial investment in the United States. We are giving away too much for too tiny of a financial investment.

The local centers, with their half-million systems, essentially damaged the much more practical million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they do in Australia, need to be regarding developing service entities, not passive financial investments. It ought to be about developing real jobs, not elaborate estimations about the indirect production of tasks, which is now component of the regulations.


Maybe that is one of the reasons it has stopped working time after time to get to the legislative goal of 10,000 investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is as well loaded with middlemen, both public and personal. The program has greater than its share of rumors, which I will certainly enter later if anybody is interested.


This is an agency that enjoys to say yes to candidates, however as the table in my statement shows, USCIS policemans have far more difficulty with EB-5 applications than others. I think that is something that no one has actually actually spoken about much. EB5 Regional Center Program. There are high rates of interior rejections in this program and for good factor

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Seventh, in this program visas most likely to people that might not get them any other method and to people whose planned investment is really less, according to the Federal Reserve, than the average mean total assets of all American households in 2007. Allow me increase on one of my monitorings.


My estimate based on the capitalists' eco-friendly card applications submitted 2 years after the first financial investment-- these are the strong ones that continue to be and are accepted. This is 2009-- was that they had concerning $191 million validated-- that is my quote. USCIS does not provide the type of information that we could use on this.


So for every $100 of raised foreign investment that year, the EB program added one penny. Under a much a lot more wobbly analytical base, the first applications of would-be immigrant financiers, USCIS is telling reporters that the level of financial investment in the just-concluded year was concerning $1.2 billion. Allow us accept that.

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Thank you for paying attention to me. I anticipate your remarks and questions. [The ready declaration of David North shows up as a submission for the document.] Chairman Leahy. Thank you. Our following witness is Robert Divine. He is an investor of Baker, browse around this web-site Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's migration method group.

Divine worked as Principal Advise of the USA Citizenship and Migration Providers from July 2004 up until November 2006, the year in which he was Performing Director, and afterwards Acting Deputy Director. He has worked thoroughly with the EB-5 program in private practice. He was elected, as I comprehend, vice president of the Organization to Invest in USA, the nationwide market association of local.


Divine, we are pleased to have you below. Please go on, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, PURCHASE 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 company website be 1 percent of the migration annually to the USA. It is not near that yet, yet it is expanding and obtaining toward that. Specifically as USCIS, the company that supervises the program, has been making the guidelines clearer and the procedures more sensible and clear for the individuals who are arranging financial investments and for the financiers who are spending, more individuals have actually been ready and able to place effort and cash right into the process to discover great projects and develop them, and afterwards more capitalists have been eager to invest their cash and take the threat and make use of the cash to produce the tasks that is the factor of the program.

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These projects do not wait around for life, and USCIS recognizes that and are trying 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 all set to deny applications that are not qualifying. And they do so, as was discussed

The regional center component of the program is not. It becomes part of an appropriations expense that was established in 1992, and because then 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 date of expiry in September.


The process takes a good while to function up a task that site and after that to obtain the financiers authorized. And they do not desire their cash flowing via up until they have been approved. And the specter of the expiration of this Regional Center Program in September is already preventing the development of projects.

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I wish to clear up that the Regional Facility Program is not the same as the half-million-dollar point. The concept of half a million or a million is a function of the regular EB-5 law that is component of the code. It simply is a fact that a lot of the regional facilities that are merging investments have actually established those in areas of high joblessness or in country locations where fifty percent- million-dollar investments are allowed, and that makes good sense.