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The program is placed in a very strange and non-helpful governmental location for the stimulation of worldwide investment in the United States. We are giving away also much for too little of a financial investment.


The regional facilities, with their half-million systems, basically damaged the a lot more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, should be concerning producing company entities, not easy financial investments. It ought to be concerning producing actual work, not clarify calculations concerning the indirect development of jobs, which is currently part of the regulation.


Probably that is among the reasons why it has actually fallen short time after time to reach the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is also loaded with middlemen, both public and personal. The program has even more than its share of detractions, which I will certainly get involved in later if anyone is interested.


This is an agency that loves to state yes to candidates, yet as the table in my testimony shows, USCIS policemans have much a lot more problem with EB-5 applications than others. I assume that is something that no one has actually discussed a lot. EB5 Regional Center Program. There are high rates of internal rejections in this program and for good reason

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Seventh, in this program visas go to people who might not obtain them differently and to people whose planned financial investment is in fact much less, according to the Federal Book, than the typical mean web well worth of all American family members in 2007. Allow me increase on among my monitorings.


My price quote based upon the capitalists' eco-friendly card 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 regarding $191 million verified-- that is my price quote. USCIS does not offer the kind of data that we might make use of on this.


For every $100 of boosted international financial investment that year, the EB program added one cent. Under a far more wobbly analytical base, the initial applications of would-be immigrant investors, USCIS is informing journalists that the level of financial investment in the just-concluded year was concerning $1.2 billion. Let us accept check here that.

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Thank you for paying attention to me. I anticipate your comments and inquiries. [The prepared declaration of David North shows up as an entry for the document.] Chairman Leahy. Thanks. 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 Services from July 2004 until November 2006, the year in which he was Performing Supervisor, and after that Acting Deputy Supervisor. He has worked thoroughly with the EB-5 program secretive method. He was elected, as I understand, vice head of state of the Association to Purchase U.S.A., the national sector association of regional facilities.


STATEMENT OF ROBERT C. DIVINE, 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 a lot of, if all 10,000 slots were made use of, it would certainly be 1 percent of the migration yearly to the United States. It is not near that yet, yet it is expanding and getting toward that. Especially as USCIS, the company that manages the program, has been making the rules more clear and the procedures extra reasonable and clear for the people who are organizing investments and for the capitalists that are spending, even more people have wanted and able to place effort and money into the procedure to discover good tasks and develop them, and after that a lot more investors have agreed to invest their cash and take the risk and make use of the cash to develop the jobs that is the factor of the program.

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These tasks do not linger permanently, and USCIS recognizes that and are trying to speed the program, speed the process - EB5 Regional Center Program. That does not imply that they are relaxing their examination, and, as a matter of fact, they are all set to reject applications that are not certifying. And they do so, as was stated


The regional facility part of the program is not. It becomes part of an appropriations bill that was established in 1992, and ever since that program has been expanded five times for 19 years. It is time for it to be permanent, and it needs to be done currently and not nearer to the day of expiration in September.


The process takes an excellent while to develop a project and after that to get the financiers authorized. And they do not want their money flowing through until they have been authorized. And the specter of the expiry of this Regional Facility Program in September is already discouraging the advancement of jobs.

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I would certainly such as to clear up that the Regional Center Program is not the very same as the half-million-dollar thing. The concept of half a million or a million is a function of the routine EB-5 regulation that becomes part of the code. It simply is a truth that a lot of the local facilities that are merging financial investments have actually established those in places of high unemployment or in backwoods where fifty percent- million-dollar financial investments are permitted, which makes feeling.