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The program is placed in a very odd and non-helpful administrative area for the excitement of worldwide investment in the United States. We are giving away as well much for as well tiny of an investment.


The local centers, with their half-million plans, basically damaged the more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they perform in Australia, need to have to do with developing service entities, not passive financial investments. It needs to have to do with producing actual work, not clarify estimations concerning the indirect creation of work, which is now component of the regulation.


Possibly that is one of the reasons that it has actually fallen short year after year to reach the legal objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is too loaded with middlemen, both public and exclusive. The program has even more than its share of detractions, which I will enter into later on if anyone is interested.


This is a company that likes to state yes to candidates, yet as the table in my testimony shows, USCIS police officers have far more trouble with EB-5 applications than others. I assume that is something that nobody 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 individuals that might not get them otherwise and to people whose organized financial investment is in fact less, according to the Federal Reserve, than the average mean total assets of all American families in 2007. Let me expand on one of my observations.


My price quote based on the capitalists' permit applications filed 2 years after the very first financial investment-- these are the solid ones that continue to be and are authorized. This is 2009-- was that they had concerning $191 million confirmed-- that is my quote. USCIS does not give the sort of information that we might use on this.


For every $100 of increased foreign investment that year, the EB program contributed one cent. Under a a lot more shaky analytical base, the initial applications of potential immigrant capitalists, USCIS is telling reporters that the level of financial investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thank you for paying attention to me. I eagerly anticipate your remarks and questions. [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 company's immigration 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 Director, and after that Performing Replacement Supervisor. He has worked extensively with the EB-5 program secretive practice. He was chosen, as I understand, vice head of state of the Organization to Spend in U.S.A., the national sector association of regional.


DECLARATION 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, Senator Grassley, and others.


At a lot of, if all 10,000 slots were made use of, it would certainly explanation be 1 percent of the migration every year to the USA. It is not near that yet, but it is growing and obtaining towards that. Particularly as USCIS, the company navigate to this website that oversees the program, has been making the policies more clear and the procedures much more reasonable and clear for the individuals who are arranging financial investments and for the investors that are spending, more individuals have actually wanted and able to put effort and cash into the process to discover great tasks and create them, and afterwards extra capitalists have agreed to spend their money and take the danger and make use of the money to produce the jobs that is the point of the program.

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These tasks do view it not linger forever, and USCIS recognizes that and are attempting to speed up the program, speed the process - EB5 Regional Center Program. That does not indicate that they are unwinding their scrutiny, and, in reality, they prepare to reject applications that are not certifying. And they do so, as was discussed


The local center part of the program is not. It belongs to an appropriations bill that was established in 1992, and ever since that program has been prolonged 5 times for 19 years. It is time for it to be irreversible, and it requires to be done currently and not nearer to the date of expiration in September.


The procedure takes an excellent while to work up a task and afterwards to get the investors approved. And they do not desire their cash streaming 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 tasks.

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I would like to clear up that the Regional Facility 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 EB-5 legislation that belongs to the code. It simply is a fact that the majority of the local facilities that are merging investments have established those instead of high unemployment or in backwoods where fifty percent- million-dollar investments are allowed, and that makes sense.