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The program is placed in a really odd and non-helpful governmental location for the excitement of worldwide investment in the United States. We are providing away also much for too tiny of a financial investment.


The local facilities, with their half-million plans, basically undercut the much more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they perform in Australia, ought to have to do with producing business entities, not passive financial investments. It needs to have to do with creating actual jobs, not elaborate calculations concerning the indirect creation of work, which is currently part of the regulations.


Maybe that is one of the reasons why it has stopped working every year to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is as well loaded with middlemen, both public and exclusive. The program has greater than its share of scandals, which I will enter into later if anybody is interested.


This is an agency that likes to state yes to applicants, yet as the table in my statement reveals, USCIS police officers have much more difficulty with EB-5 applications than others. I believe that is something that nobody has actually actually spoken about much. EB5 Regional Center Program. There are high rates of internal rejections in this program and completely factor

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Seventh, in this program visas go to individuals who could not obtain them differently and to individuals whose planned financial investment is actually less, according to the Federal Reserve, than the ordinary mean net worth of all American families in 2007. Let me increase on one of my observations.


My price quote based on the financiers' copyright applications filed 2 years after the initial investment-- these are the strong ones that stay and are approved. This is 2009-- was that they had about $191 million verified-- that is my estimate. USCIS does not give the kind of information that we could use on this.


So for every single $100 of boosted foreign investment that year, the EB program added one cent. Under a a lot more shaky statistical base, the preliminary applications of prospective immigrant investors, USCIS is telling 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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Thank you for listening to me. I anticipate your comments and concerns. [The prepared declaration of David North appears as an entry for the record.] Chairman Leahy. Thanks. Our following 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 offered as Principal Counsel of the USA Citizenship and Immigration Solutions from July 2004 until November 2006, the year in which he was Acting Director, and afterwards Acting Deputy Supervisor. He has worked extensively with the EB-5 program in personal method. He was elected, as I comprehend, vice president of the Organization to Spend in USA, the national market association of local facilities.


STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others.


At a lot of, if all 10,000 slots were used, it would certainly be 1 visit percent of the immigration yearly to the United States. It is not near that yet, yet it is expanding and getting towards that. Particularly as USCIS, the firm that looks after the program, has actually been making the rules clearer and the processes more logical and clear for the people that are arranging investments and for the investors that are spending, more people have wanted and able to put effort and money into the process to discover good tasks and establish them, and then much more financiers have wanted to invest their money 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 wait around forever, and USCIS comprehends that and are attempting to speed the program, speed up the process - EB5 Regional Center Program. That does not imply that they are unwinding their scrutiny, and, as a matter of fact, they prepare to deny applications that are not qualifying. And they do so, as was mentioned


The regional facility part of the program is not. It belongs to an appropriations costs that was passed in 1992, and ever since that program has been prolonged 5 times for 19 years. It is time for it to be long-term, and it needs to be done currently and not nearer to the date of expiration in September.


The process takes a good while to work up a project and after that to obtain the capitalists approved. And they do not desire their money streaming through until they have been approved. And the specter of the expiry of this Regional Facility Program in September is already inhibiting the growth of jobs.

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I wish 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 find out million is a feature of the regular EB-5 legislation that belongs to the code. It simply is a reality that a lot of the regional facilities that are pooling investments have established those in places of high look at these guys joblessness or in backwoods where fifty percent- million-dollar financial investments are enabled, which makes feeling.