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The program is placed in a really strange and non-helpful bureaucratic area for the excitement of international investment in the United States. We are providing away too much for too small of a financial investment.


The local facilities, with their half-million systems, essentially undercut the more practical million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they perform in Australia, need to have to do with producing service entities, not easy financial investments. It ought to be regarding producing genuine jobs, not clarify estimations regarding the indirect production of jobs, which is now component of the regulations.


Possibly that is one of the reasons it has actually failed year after year to get to the legislative goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is too full of intermediaries, both public and exclusive. The program has greater than its share of scandals, which I will get involved in later if anyone is interested.


This is a firm that likes to claim yes to candidates, yet as the table in my testimony reveals, USCIS officers have a lot more trouble with EB-5 applications than others. I think that is something that no one has actually actually chatted around a lot. EB5 Regional Center Program. There are high prices of internal denials in this program and permanently factor

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Seventh, in this program visas go to people who can not get them otherwise and to individuals whose organized investment is really less, according to the Federal Reserve, than the typical mean total assets of all American family members in 2007. Let me expand on one of my observations.


My price quote based upon the investors' copyright applications submitted 2 years after the first financial investment-- these are the strong ones that remain and are approved. This is 2009-- was that they had regarding $191 million confirmed-- that is my quote. USCIS does not offer the sort of information that we might use on this.


For every $100 of increased international financial investment that year, the EB program added one penny. Under a a lot more wobbly analytical base, the preliminary applications of would-be immigrant financiers, USCIS is informing journalists that the level of financial investment in the just-concluded year was about $1.2 billion. Let us approve that.

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Thank you for paying attention to me. I anticipate your remarks and questions. [The ready statement of David North looks like an entry for the document.] Chairman Leahy. Thanks. Our next witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's migration method group.




Divine worked as Chief Counsel of the United States Citizenship and Migration Providers from July 2004 till November 2006, the year in which he was Acting Director, and after that Acting Deputy Supervisor. He has functioned thoroughly with the EB-5 program in exclusive technique. He was chosen, as I understand, vice head of state of the Organization to Invest in United States, the national market organization of regional facilities.


DECLARATION OF ROBERT C. DIVINE, view it now ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At many, if all 10,000 slots were used, it would be 1 percent of the immigration every year to the United States. It is not near that yet, but it is expanding and getting toward that. Especially as USCIS, the firm that oversees the program, has been making the guidelines more clear and the processes a lot more reasonable and clear for the people that are organizing financial investments and for the investors that are investing, more individuals have actually been eager and able to place initiative and article cash right into the procedure to discover excellent projects and develop them, and then a lot more financiers have agreed to spend their money and take the risk and use the money to create the jobs that is the factor of the program.

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These jobs do not wait about forever, and USCIS understands that and are trying to speed up the program, speed the procedure - EB5 Regional Center Program. That does not imply that they are relaxing their analysis, and, as a matter of fact, they are all set to reject applications that are not qualifying. And they do so, as was stated


The local center component of the program is not. It belongs to an appropriations bill that was enacted in 1992, and ever since that program has actually been prolonged five times for 19 years. It is time for it to be long-term, and it needs to be done now and not nearer to the date of expiration in September.


The procedure takes an excellent while to develop a project and after that to get the financiers accepted. And they do not desire their money streaming via till they have been approved. And the specter of the expiry of this Regional Center Program in September is already preventing the advancement of tasks.

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I would certainly such as to clarify that the Regional Center Program is not the like the half-million-dollar point. The concept of half a million or a million is a function of the normal EB-5 law that belongs to the code. It simply is a reality that many of the news regional facilities that are pooling investments have set those instead of high unemployment or in rural areas where fifty percent- million-dollar investments are permitted, which makes sense.