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The program is positioned in a really strange and non-helpful bureaucratic area for the stimulation of global financial investment in the United States. We are providing away also much for too tiny of an investment.


The local centers, with their half-million plans, basically damaged the much more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they perform in Australia, ought to be regarding producing company entities, not easy investments. It should have to do with producing actual work, not specify computations regarding the indirect creation of jobs, which is now component of the regulation.


Probably that is just one of the reasons it has failed year after year to get to the legal goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is as well full of intermediaries, both public and exclusive. The program has more than its share of scandals, which I will enter into later if anybody is interested.


This is an agency that enjoys to say yes to applicants, yet as the table in my testament shows, USCIS officers have much a lot more problem with EB-5 applications than others. I believe that is something that no one has actually truly talked about a lot. 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 most likely to people that can not obtain them differently and to individuals whose scheduled investment is really less, according to the Federal Book, than the average mean total assets of all American families in 2007. Allow me increase on one of my observations.


My estimate based upon the capitalists' permit applications submitted 2 years after the very first financial investment-- these are the strong ones that stay and are accepted. This is 2009-- was that they had concerning $191 million confirmed-- that is my estimate. USCIS does not provide the type of information that we might make use of on this.


For every $100 of enhanced foreign investment that year, the EB program added one penny. Under a much a lot more shaky analytical base, the preliminary applications of prospective immigrant capitalists, USCIS is informing reporters that the level of investment in the just-concluded year was regarding $1.2 billion. Let us approve that.

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Thank you for listening to me. I expect your remarks and inquiries. [The prepared declaration of David North looks like a submission for the record.] Chairman Leahy. Thank you. 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 immigration practice group.




Divine functioned as Principal Advice of the United States Citizenship and Migration Services from July 2004 until November 2006, the year in which he was Acting Director, and afterwards Acting Deputy Director. He has functioned thoroughly with the EB-5 program secretive method. He was elected, as I understand, vice president of the Organization to Buy U.S.A., the national market organization of local centers.


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


At most, if all 10,000 ports were used, it would be 1 percent of the migration each year to the USA. It is not near that yet, yet it is expanding and obtaining toward that. Specifically as USCIS, the company that oversees the program, has been making the policies clearer and the processes extra rational and clear for individuals dig this who are organizing investments and for the capitalists that are spending, more people have been eager and able to put initiative and money into the process to locate great projects and create them, and afterwards a lot more financiers have actually agreed to invest their money and take the danger and utilize the cash to develop the work that is the factor of the program.

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These tasks do not linger forever, and USCIS recognizes that and are trying to speed up the program, speed the procedure - EB5 Regional Center Program. That does not indicate that they are relaxing their scrutiny, and, actually, they are ready to refute applications that are not qualifying. And they do so, as was mentioned


The regional facility component of the program is not. It is part of an appropriations expense that was enacted in 1992, and ever since that program has been expanded 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 date of expiration in September.


The process takes an excellent while to work up a job and then to obtain the investors authorized. And they do not desire their cash flowing with until they have been approved. And the specter of the expiry of this Regional Facility Program in September is already inhibiting the development of jobs.

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I would such as to make clear that the Regional Center Program is not the like the half-million-dollar thing. The concept of half a million or a million is a function of the normal read EB-5 law that belongs to the code. It just is a fact that many of the local centers that are pooling investments have established those in places of high unemployment or in country areas where half- million-dollar investments are enabled, and that makes good sense.