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The program is placed in a really strange and non-helpful governmental place for the stimulation of global investment in the United States. We are providing away too much for also tiny of an investment.


The regional facilities, with their half-million schemes, essentially undercut the extra reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, should be about developing organization entities, not passive investments. It needs to be regarding creating real work, not specify calculations concerning the indirect production of work, which is currently component of the regulations.


Possibly that is one of the reasons that it has failed year after year to reach the legislative goal of 10,000 investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is also full of middlemen, both public and private. The program has more than its share of scandals, which I will certainly enter later if anybody is interested.


This is an agency that loves to say yes to candidates, yet as the table in my statement shows, USCIS officers have a lot more trouble with EB-5 applications than others. I believe that is something that nobody has truly chatted about a lot. 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 most likely to individuals that could not get them otherwise and to individuals whose planned investment is actually much less, according to the Federal Book, than the typical mean net well worth of all American families in 2007. Allow me expand on one of my monitorings.


My price quote based on the investors' permit applications filed 2 years after the initial financial investment-- these are the strong ones that remain and are approved. This is 2009-- was that they had about $191 million validated-- that is my price quote. USCIS does not supply the sort of data that we could use on this.


So for every single $100 of boosted international financial investment that year, the EB program added one dime. Under a a lot more shaky statistical base, the first applications of would-be immigrant investors, USCIS is telling journalists that the level of financial investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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Thanks for paying attention to me. I eagerly anticipate your remarks and questions. [The prepared statement of David North looks like a submission for the record.] 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 firm's migration technique team.




Divine worked as Chief Advice of the USA Citizenship and Immigration Solutions from July 2004 until November 2006, the year in which he was Performing Supervisor, and afterwards Performing Deputy Supervisor. He has actually worked extensively with the EB-5 program secretive method. He was chosen, as I recognize, vice head of state of the Organization to Invest in United States, the nationwide market association of regional.


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


At many, if all 10,000 ports were used, it would be 1 percent of the migration every year to the more info United States. It is not near that yet, but it is expanding and getting towards that. Especially as USCIS, the company that looks after the program, has actually been making the regulations clearer and the processes a lot more sensible and clear for the individuals who are arranging investments and for the financiers that are spending, more people have actually agreed and able to put initiative and money right into the process to locate excellent tasks and create them, and then a lot more investors have wanted to spend their cash and take the risk and utilize the cash to develop the work that is the factor of the program.

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These jobs do not linger for life, and USCIS understands that and are trying to speed up the program, speed up the process - EB5 Regional Center Program. That does not imply that they are relaxing their analysis, and, actually, they prepare to deny 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 passed in 1992, and considering that then that program has actually been extended five times for 19 years. It is time for it to be long-term, and it requires to be done currently and not nearer to the day of expiry in September.


The procedure takes a great while to function up a job and after that to get the investors authorized. And they do not want their cash moving through till they have actually been approved. And the specter of the expiry of this Regional Facility Program in September is already inhibiting the development of jobs.

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I wish to clarify that the Regional Facility Program is not the very same as the half-million-dollar point. The idea of half a million or a million is a function of the regular EB-5 law that becomes part of the code. It just is a reality that most of the local facilities that are pooling investments have actually set those instead of high unemployment or in backwoods where fifty percent- million-dollar financial investments are enabled, and that makes feeling.