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The program is put in an extremely weird and non-helpful governmental location for the excitement of worldwide investment in the United States. We are offering away also much for as well little of an investment.


The regional facilities, with their half-million schemes, basically undercut the more practical million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they perform in Australia, should be about developing service entities, not easy financial investments. It needs to be regarding producing actual jobs, not elaborate estimations regarding the indirect creation of work, which is currently component of the regulation.


Perhaps that is one of the reasons that it has failed year after year to get to the legal objective of 10,000 investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is too full of intermediaries, both public and personal. The program has greater than its share of scandals, which I will enter later if anybody is interested.


This is an agency that loves to claim yes to applicants, however as the table in my testament reveals, USCIS policemans have far more trouble with EB-5 applications than others. I believe that is something that no one has actually really spoken about much. EB5 Regional Center Program. There are high rates of interior rejections in this program and completely reason

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Seventh, in this program visas go to individuals that could not obtain them any kind of other means and to individuals whose planned financial investment is really less, according to the Federal Reserve, than the average mean total assets of all American family members in 2007. Let me increase on among my observations.


My estimate based upon the capitalists' permit applications submitted 2 years after the initial investment-- these are the strong ones that remain and are accepted. This is 2009-- was that they had concerning $191 million validated-- that is my estimate. USCIS does not supply the sort of data that we might make use of on this.


For every $100 of increased international financial investment that year, the EB program added one cent. Under a much a lot more unsteady statistical base, the initial applications of would-be immigrant financiers, USCIS is informing reporters 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 expect your comments and inquiries. [The ready statement of David North looks like an entry for the record.] Chairman Leahy. Thank you. Our next 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 team.




Divine offered as Principal Counsel of the USA Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Acting Supervisor, and after that Performing Deputy Supervisor. He has actually worked thoroughly with the EB-5 program in private method. He was elected, as I comprehend, vice head of state of the Association to Spend in USA, the national sector association of regional facilities.


Divine, we are pleased to have you right here. Please go on, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY THE U.S.A. (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At many, if all 10,000 slots were made use of, it would certainly be 1 percent of the immigration annually to the United States. It is not near that yet, but it is expanding and getting toward that. Especially as USCIS, the firm that manages the program, has actually been making the policies clearer and the procedures much more sensible and clear for the individuals that are organizing financial investments and for the capitalists who are investing, even more individuals have actually wanted and able to place initiative and money into the process to find excellent tasks and develop them, and then a lot more investors have agreed to invest their cash and take the danger and utilize the cash to produce the tasks that is the factor of the program.

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These projects do not linger permanently, and USCIS understands that and are attempting to speed the program, speed up the process - EB5 Regional Center Program. That does not indicate that they are relaxing their analysis, read more and, actually, they prepare to deny applications that are not qualifying. And they do so, as was stated


The regional facility part of the program is not. It belongs to an appropriations costs that was enacted in 1992, and ever since that program has been prolonged 5 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 a good while to develop a job and then to obtain the investors accepted. And they do not desire their cash moving via till they have actually been approved. And the specter of the expiry of this Regional Center Program in September is already preventing the development of jobs.

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I want to clarify that the Regional Center Program is not the same as the half-million-dollar thing. The idea of half a million or a million is a feature of the normal EB-5 regulation that is component of the code. It just is a fact that most of the local centers that are merging investments have actually established those instead of high unemployment or in backwoods where fifty percent- million-dollar financial investments are enabled, which makes good sense.