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The program is positioned in an extremely strange and non-helpful bureaucratic area for the excitement of global financial investment in the United States. We are giving away as well much for too small of a financial investment.


The local centers, with their half-million plans, basically undercut the extra practical million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they perform in Australia, should have to do with developing organization entities, not easy financial investments. It must be regarding creating genuine jobs, not clarify calculations regarding the indirect creation of tasks, which is now component of the regulations.


Probably that is one of the reasons that it has stopped working every year to get to the legislative objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is also filled with middlemen, both public and personal. The program has more than its share of rumors, which I will enter into later on if anyone is interested.


This is an agency that enjoys to state yes to applicants, but as the table in my testament reveals, USCIS policemans have a lot extra difficulty with EB-5 applications than others. I believe that is something that nobody has actually discussed much. EB5 Regional Center Program. There are high rates of internal denials in this program and permanently reason

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Seventh, in this program visas go to people that could not obtain them otherwise and to people whose scheduled investment is in fact less, according to the Federal Book, than the ordinary mean total assets of all American families in 2007. Let me expand on one of my observations.


My estimate based on the investors' eco-friendly card 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 concerning $191 million confirmed-- that is my price quote. USCIS does not give the sort of data that we could utilize on this.


For every $100 of raised international financial investment that year, the EB program added one penny. Under a far more shaky analytical base, the initial applications of potential immigrant capitalists, USCIS is telling reporters that the level of investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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Thanks for listening to me. I eagerly anticipate your comments and concerns. [The prepared statement of David North appears as a submission for the document.] Chairman Leahy. Thanks. Our next witness is Robert Divine. He is an investor of Baker, Donelson, content Bearman, Caldwell, and Berkowitz. He is the head of the company's migration technique group.




Divine worked as Chief Advise of the USA Citizenship and Migration Services from July 2004 up until November 2006, the year in which he was Acting Supervisor, and then Performing Replacement Supervisor. He has worked thoroughly with the EB-5 program in private practice. He was chosen, as I comprehend, vice president of the Association to Buy USA, the nationwide sector association of local facilities.


Divine, we are thrilled to have you here. Please go in advance, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At the majority of, if all 10,000 slots were made use of, it would certainly be 1 percent of the migration yearly to the USA. It is not near that yet, but it is expanding and obtaining toward that. Particularly as USCIS, the agency that manages the program, has actually been making the rules more clear and the procedures more sensible and clear for the individuals that are arranging investments and for the investors who are investing, even more people have agreed and able to place effort and cash into the procedure to locate great jobs and establish them, and after useful content that a lot more investors have actually agreed to spend their money and take the risk and use the cash to produce the work that is the point of the program.

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These tasks do not linger for life, and USCIS recognizes that and are trying to speed up the program, speed the procedure - EB5 Regional Center Program. That does not indicate that they are unwinding their analysis, and, as a matter of fact, they prepare to deny applications that are not qualifying. And they do so, as was mentioned


The regional center part of the program is not. It belongs to an appropriations costs that was passed in 1992, and ever since that program has actually been expanded 5 times for 19 years. It is time for it to be permanent, and it needs to be done currently and not nearer to the date of expiry in September.


The process takes an excellent while to function up a job and then to obtain the capitalists authorized. And they do not desire their cash moving via until they have actually been accepted. And the specter of the expiry of this Regional Center Program in September is already preventing the advancement of tasks.

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I would love to make clear that the Regional Center Program is not the exact same as the half-million-dollar point. The idea of half look at here 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 the majority of the regional facilities that are pooling financial investments have actually set those in locations of high unemployment or in backwoods where half- million-dollar investments are permitted, and that makes feeling.