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The program is positioned in a really odd and non-helpful administrative place for the stimulation of international financial investment in the United States. We are providing away too much for also small of an investment.


The regional facilities, with their half-million systems, essentially damaged the a lot more practical million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they perform in Australia, ought to be concerning creating business entities, not easy investments. It should be about developing actual work, not specify calculations concerning the indirect production of jobs, which is currently component of the legislation.


Possibly that is just one of the reasons that it has fallen short time after time to reach the legislative goal of 10,000 investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is as well full of middlemen, both public and personal. The program has greater than its share of detractions, which I will enter into later on if anybody is interested.


This is a company that likes to say yes to candidates, yet as the table in my statement reveals, USCIS policemans have a lot extra problem with EB-5 applications than others. I assume that is something that nobody has really spoken about much. EB5 Regional Center Program. There are high rates of inner denials in this program and permanently factor

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Seventh, in this program visas go to people who could not obtain them otherwise and to individuals whose planned investment is really much less, according to the Federal Book, than the typical mean net worth of all American households in 2007. Let me broaden on one of my observations.


My quote based on the capitalists' permit applications filed 2 years after the initial investment-- these are the solid ones that stay and are authorized. This is 2009-- was that they had concerning $191 million validated-- that is my price quote. USCIS does not give the type of information that we might make use of on this.


For every $100 of raised international investment that year, the EB program added one penny. Under a much extra wobbly analytical base, the first applications of prospective immigrant financiers, USCIS is informing reporters that the level of financial investment in the just-concluded year had to do with $1.2 billion. Let us approve that.

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Thank you for listening to me. I eagerly anticipate your comments and inquiries. [The prepared declaration of David North looks like an entry for the record.] Chairman Leahy. Thank you. Our next witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's immigration method group.




Divine worked as Principal Advice of the USA Citizenship and Migration Providers from July 2004 till November 2006, the year in which he was Performing Supervisor, and after that Acting Replacement Supervisor. He has worked thoroughly with the EB-5 program in private technique. He was chosen, as I recognize, vice president of the Organization to Buy United States, the nationwide market organization of local centers.


Divine, we are pleased to have you below. Please go on, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, BUY THE U.S.A. (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At the majority of, if all 10,000 slots were utilized, it would certainly be 1 percent of the migration annually to the USA. It is not near that yet, however it is growing and getting toward that. Particularly as USCIS, the agency that looks after the program, has been making the guidelines more clear and the procedures more sensible and clear for the people who are organizing investments and for the capitalists who are investing, more people have actually wanted and able to place initiative and cash into the process to find good projects and develop them, and then a lot more capitalists have been ready to invest their money and take the danger and utilize the cash to develop the work that is the factor of the program.

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These projects do not linger permanently, and USCIS understands that and are attempting to speed up the program, next speed up the procedure - EB5 Regional Center Program. That does not mean that they are relaxing their scrutiny, and, as a matter of fact, they prepare to reject applications that are not qualifying. And they do so, as was mentioned


The regional facility component of the program is not. It becomes part of an appropriations bill that was established in 1992, and ever since that program has been extended 5 times for 19 years. It is time for it to be irreversible, and it needs to be done currently and not nearer to the date of expiration in September.


The process takes an excellent while to function up a job and after that to obtain the investors approved. And they do not desire their cash moving through up until they have actually been authorized. And the specter of the expiry of this Regional Center Program in September is already preventing the development of anchor jobs.

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I would such as to clear up that the Regional Center Program is not the very same as the half-million-dollar point. The idea of half a million or a million is a feature of the routine EB-5 regulation that belongs to the code. It just is a fact that the majority of the local facilities that are merging financial investments have established those instead of high unemployment or in backwoods where half- this post million-dollar investments are permitted, which makes sense.