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The program is placed in an extremely odd and non-helpful bureaucratic area for the excitement of global financial investment in the United States. Second, its scale is all wrong. We are handing out as well much for also tiny of a financial investment. Better, elevating equity capital fifty percent a million dollars a tranche is, to state the least, ineffective.

The local centers, with their half-million systems, basically undercut the extra sensible million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they do in Australia, ought to have to do with developing organization entities, not easy financial investments. It should be concerning creating real jobs, not elaborate computations regarding the indirect production of work, which is currently part of the legislation.

Maybe that is one of the reasons why it has actually fallen short year after year to reach the legislative goal of 10,000 investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is as well full of intermediaries, both public and private. The program has even more than its share of scandals, which I will get right into later on if anyone is interested.

This is an agency that enjoys to claim yes to candidates, however as the table in my statement shows, USCIS policemans have much extra difficulty with EB-5 applications than others. I think that is something that nobody has really spoken about a lot. EB5 Regional Center Program. There are high prices of internal denials in this program and for good factor

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Seventh, in this program visas most likely to people who might not get them any other means and to individuals whose scheduled financial investment is really less, according to the Federal Book, than the typical mean total assets of all American family members in 2007. Let me broaden on among my observations.

My price quote based upon the financiers' permit applications filed 2 years after the first investment-- these are the strong ones that stay and are approved. This is 2009-- was that they had concerning $191 million verified-- that is my estimate. USCIS does not offer the sort of information that we can utilize on this.

For every $100 of raised foreign investment that year, the EB program contributed one penny. Under a a lot more unsteady analytical base, the preliminary applications of potential immigrant financiers, USCIS is informing reporters that the level of investment in the just-concluded year had to do with $1.2 billion. Let us approve that.

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Thank you for listening to me. I expect your remarks and inquiries. [The ready declaration of David North looks like an entry for the document.] Chairman Leahy. Thanks. Our following witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's immigration technique group.


Divine offered as Chief Guidance of the United States Citizenship and Immigration Providers from July 2004 until November 2006, the year in which he was Performing Supervisor, and afterwards Acting Deputy Director. He has worked thoroughly with the EB-5 program secretive method. He was chosen, as I understand, vice head of state of the Association to Invest in United States, the national market organization of local.

Divine, we are delighted 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 HEAD OF STATE, PURCHASE THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.

At a lot of, if all 10,000 ports were used, it would be 1 percent of the migration yearly to the United States. It is not near that yet, yet it is expanding and obtaining towards that. Particularly as USCIS, the firm that looks after the program, has been making the guidelines clearer and the procedures more sensible and clear for the people that are organizing investments and for the investors who are investing, more individuals have wanted and able to put initiative and money into the procedure to locate good jobs and establish them, and after that more financiers have wanted to invest their money and take the danger and use the money to create the jobs that is the factor of the program.

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These projects do not linger permanently, and USCIS understands that and are trying to speed the program, speed up the process - EB5 Regional Center Program. That does not indicate that they are unwinding their analysis, and, actually, they are prepared to reject applications that are not certifying. And they do so, as was pointed out

The local facility component of the program is not. It becomes part of an appropriations bill that was established in 1992, click here and since then that program has been prolonged five times for 19 years. It is time for it to be irreversible, and it needs 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 get the financiers approved. And they do not desire their money streaming with until they have actually been accepted. And the specter of the expiry of this Regional Center Program in September is currently inhibiting the advancement of projects.

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I would love to make clear that the Regional Center Program is not the like the half-million-dollar point. The idea of half a million or a million is a feature of the normal EB-5 law that becomes part of the code. It just is a truth that the majority of the regional facilities that are pooling financial investments have established those in areas of high unemployment or in backwoods where fifty percent- million-dollar financial investments are permitted, which makes feeling.

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