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


The regional facilities, with their half-million plans, essentially undercut the more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, should be about creating service entities, not easy investments. It ought to have to do with creating actual work, not elaborate computations about the indirect production of jobs, which is now part of the regulations.


Perhaps that is just one of the reasons why it has actually fallen short time after time 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 middlemen, both public and private. The program has even more than its share of scandals, which I will certainly enter later on if any person is interested.


This is a firm that loves to claim yes to applicants, yet as the table in my statement shows, USCIS officers have a lot more trouble with EB-5 applications than others. I think that is something that nobody has actually actually chatted about a lot. EB5 Regional Center Program. There are high prices of interior denials in this program and for good reason

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Seventh, in this program visas most likely to individuals who might not get them any kind of other method and to individuals whose planned investment is actually less, according to the Federal Book, than the typical mean total assets of all American families in 2007. Let me increase on one of my observations.


My price quote based on the capitalists' permit applications submitted 2 years after the first investment-- these are the strong ones that continue to be and are authorized. This is 2009-- was that they had about $191 million verified-- that is my quote. USCIS does not offer the sort of information that we might make use of on this.


For every $100 of increased international financial investment that year, the EB program contributed one penny. Under a far more unsteady analytical base, the initial applications of prospective immigrant financiers, USCIS is informing journalists 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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Thanks for paying attention to me. I expect your comments and inquiries. [The ready statement of David North shows up as 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 migration method team.




Divine acted as Principal Advise of the United States Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Acting Director, and afterwards Acting Deputy Director. He has worked thoroughly with the EB-5 program secretive technique. He was chosen, as I recognize, vice president of the Association to Invest in U.S.A., the nationwide sector association of local.


Divine, we are delighted to have you here. Please proceed, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY THE U.S.A. (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At the majority of, if all 10,000 slots were used, it would certainly be 1 percent of the immigration every year to the USA. It is not near that yet, however it is growing and obtaining towards that. Especially as USCIS, the firm that supervises the program, has been making the regulations more clear and the procedures more logical and clear for the people that are organizing financial investments and for the investors that are investing, more individuals have actually agreed and able to place effort and money into the process to locate great projects and create them, and afterwards much more capitalists have actually been ready to spend their money and take the threat and utilize the money to create the tasks that is the factor of the program.

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These jobs do not linger permanently, and USCIS understands that and are attempting to speed up the program, speed the process - EB5 Regional Center Program. That does not mean that they are relaxing their examination, and, actually, they prepare to deny applications that are not qualifying. And they do so, website as was stated


The regional facility component of the program is not. It is component of an appropriations costs that was passed in 1992, and since then that program has actually been prolonged 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 procedure takes a great while to develop a job and after that to obtain the capitalists authorized. And they do not desire their cash streaming via till they have been authorized. And the specter of the expiration of this Regional Center Program in September is already inhibiting the advancement of jobs.

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I want to clarify that the Regional Center Program is not the very same as the half-million-dollar point. The concept of half a million or a million is a feature of the normal EB-5 regulation that belongs to the code. It simply is a truth that a lot of the local centers that are pooling financial investments have set those instead of high unemployment or in backwoods where fifty percent- million-dollar investments are permitted, which makes sense.