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The program is positioned in a very odd and non-helpful bureaucratic area for the excitement of worldwide financial investment in the United States. We are giving away also much for too tiny of a financial investment.


The local facilities, with their half-million plans, basically undercut the more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they do in Australia, must have to do with producing service entities, not easy investments. It ought to be about creating genuine jobs, not specify computations about the indirect production of jobs, which is currently part of the regulation.


Maybe that is one of the reasons it has stopped working every year to get to the legislative goal of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is as well filled with intermediaries, both public and exclusive. The program has greater than its share of scandals, which I will certainly enter into later if any person is interested.


This is an agency that loves to say yes to applicants, yet as the table in my testimony reveals, USCIS policemans have far more trouble with EB-5 applications than others. I think that is something that nobody has actually actually discussed a lot. EB5 Regional Center Program. There are high prices of internal denials in this program and for excellent reason

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Seventh, in this program visas most likely to individuals who could not get them any type of other method and to people whose planned financial investment is actually much less, according to the Federal Book, than the typical mean total assets of all American family members in 2007. Allow me broaden on one of my monitorings.


My estimate based on the investors' environment-friendly card applications submitted 2 years after the very first investment-- these are the solid ones that remain and are authorized. This is 2009-- was that they had about $191 million confirmed-- that is my estimate. USCIS does not offer the type of data that we can use on this.


For every $100 of enhanced international investment that year, the EB program contributed one penny. Under a much extra unsteady analytical base, the first applications of potential immigrant financiers, USCIS is telling reporters that the level of investment in the just-concluded year was regarding $1.2 billion. Allow us accept that.

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Thanks for listening to me. I expect your remarks and inquiries. [The ready statement of David North looks like an entry for the document.] Chairman Leahy. Thank you. 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 migration method team.




Divine functioned as Principal Advise of the USA Citizenship and Migration Providers from July 2004 up until November 2006, the year in which he was Acting Supervisor, and after that Performing Deputy Supervisor. He has functioned thoroughly with the EB-5 program secretive practice. He was chosen, as I recognize, vice head of state of the Association to Spend in U.S.A., the national sector association of local.


Divine, we are pleased to have you right here. Please go on, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, 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 migration every year to the United States. It is not near that yet, but it is expanding and obtaining toward that. Specifically as USCIS, the company that oversees the program, has actually been making the rules more clear and the processes more reasonable and clear for individuals that are organizing financial investments and for the investors that are spending, more people have actually been eager and able to put initiative and money into the procedure to find great tasks and develop them, and after that more financiers have actually agreed to invest their cash and take the risk and utilize the cash to develop the jobs that is the factor of the program.

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These tasks do not linger for life, and USCIS understands that and are trying to speed the program, speed the process - EB5 Regional Center Program. That does not imply that they are relaxing their analysis, and, actually, they are ready to reject applications that are not certifying. And they do so, as was pointed out


The regional facility part of the program is not. It belongs to an appropriations costs that was passed in 1992, and because then that program has actually been prolonged five times for 19 years. It is time for it to be irreversible, and it needs to be done currently and not nearer to the day of expiry in September.


The process takes a great while to develop a job and afterwards to obtain the investors authorized. And they do not desire their money flowing with till they have been authorized. And the specter of the expiration of this Regional Facility Program in September is currently preventing the development of projects.

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I would love to clear up that the Regional Center Program is not the exact same as the half-million-dollar point. The idea of half a million or a million is a click here function of the routine EB-5 legislation that is component of the code. It just is a fact that a lot of the local centers that are pooling financial investments have established those in places of high joblessness or in rural areas where half- million-dollar investments are allowed, and that makes feeling.