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The program is placed in a very odd and non-helpful administrative location for the stimulation of global investment in the United States. We are giving away also much for too small of a financial investment.


The regional centers, with their half-million schemes, basically damaged the extra reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they perform in Australia, need to be concerning producing organization entities, not passive investments. It ought to have to do with developing real work, not elaborate estimations about the indirect creation of tasks, which is currently component of the legislation.


Maybe that is among the reasons that it has stopped working every year to reach the legal goal of 10,000 investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is also filled up with middlemen, both public and exclusive. The program has more than its share of scandals, which I will get involved in later on if anyone is interested.


This is an agency that enjoys to claim yes to candidates, however as the table in my statement reveals, USCIS policemans have much a lot more problem with EB-5 applications than others. I assume that is something that nobody has actually discussed a lot. EB5 Regional Center Program. There are high rates of inner denials in this program and forever factor

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Seventh, in this program visas most likely to people who could not obtain them otherwise and to people whose scheduled financial investment is in fact much less, according to the Federal Get, than the ordinary mean internet worth of all American families in 2007. Let me expand on one of my monitorings.


My estimate based on the investors' permit applications submitted 2 years after the initial investment-- these are the solid ones that continue to be and are accepted. This is 2009-- was that they had about $191 million validated-- that is my quote. USCIS does not offer the type of data that we could use on this.


For every $100 of enhanced international investment that year, the EB program contributed one cent. Under a far more unsteady analytical base, the initial 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. Let us approve that.

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Thank you for paying attention to me. I look forward to your remarks and inquiries. [The prepared declaration of David North appears as a submission 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 firm's migration practice team.




Divine functioned as Principal Counsel of the USA Citizenship and Immigration Providers from July 2004 up until November 2006, the year in which he was Performing Director, and then Performing Deputy Director. He has worked thoroughly with the EB-5 program secretive practice. He was elected, as I understand, vice head of state of the Association to Spend in U.S.A., the nationwide sector organization of local.


DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and read others.


At the majority of, if my review here all 10,000 ports were used, it would certainly be 1 percent of the migration every year to the USA. It is not near that yet, yet it is expanding and getting towards that. Specifically as USCIS, the firm that supervises the program, has been making the policies more clear and the processes much more logical and clear for the individuals that are arranging financial investments and for the investors that are investing, more people have been prepared and able to put effort and cash into the procedure to locate excellent tasks and develop them, and after that a lot more investors have actually been ready to spend their money and take the threat and use the cash to create the work that is the point of the program.

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These jobs do not linger forever, and USCIS recognizes that and are attempting to speed up the program, speed the process - EB5 Regional Center Program. That does not mean that they are relaxing their examination, and, as a matter of fact, they are prepared to deny applications that are not qualifying. And they do so, as was pointed out


The regional facility component of the program is not. It becomes part of an appropriations costs that was established in 1992, and ever since that program has been expanded 5 times for 19 years. It is time for it to be permanent, and it needs to be done now and not nearer to the day of expiration in September.


The process takes a great while to function up a job and afterwards to get the financiers approved. And they do not desire their cash streaming with till they have actually been accepted. And the specter of the expiration of this Regional Center Program in September is Learn More Here currently dissuading the growth of projects.

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I want to make clear that the Regional Facility Program is not the exact same as the half-million-dollar point. The concept of half a million or a million is a feature of the regular EB-5 law that belongs to the code. It just is a fact that the majority of the local facilities that are merging financial investments have actually set those in places of high joblessness or in country locations where half- million-dollar financial investments are allowed, and that makes good sense.