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The program is positioned in a very strange and non-helpful bureaucratic place for the excitement of international investment in the United States. We are providing away as well much for also tiny of an investment.


The local centers, with their half-million plans, essentially undercut the a lot more practical million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they perform in Australia, ought to have to do with creating company entities, not passive investments. It ought to have to do with developing real work, not specify estimations concerning the indirect development of tasks, which is now component of the regulation.


Probably that is among the reasons it has failed time after time to get to the legislative goal of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is as well filled with intermediaries, both public and private. The program has greater than its share of scandals, which I will get involved in later if anyone is interested.


This is an agency that likes to say yes to candidates, however as the table in my testimony reveals, USCIS policemans have a lot more difficulty with EB-5 applications than others. I think that is something that no one has actually truly talked around much. EB5 Regional Center Program. There are high prices of internal rejections in this program and for good factor

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Seventh, in this program visas go to people that can not get them any type of various other means and to people whose organized financial investment is actually less, according to the Federal Book, than the ordinary mean total assets of all American households in 2007. Allow me increase on among my monitorings.


My estimate based on the financiers' permit applications submitted 2 years after the first investment-- these are the solid ones that stay and are accepted. This is 2009-- was that they had concerning $191 million confirmed-- that is my estimate. USCIS does not provide the sort of information that we can make use of on this.


For every $100 of enhanced international financial investment that year, the EB program contributed one cent. Under a far more unsteady analytical base, the preliminary applications of potential immigrant financiers, USCIS is telling journalists that the level of investment in the just-concluded year had to do with $1.2 billion. Let us accept that.

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Thank you for paying attention to me. I look forward to your remarks and concerns. [The ready declaration 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, Bearman, Caldwell, and Berkowitz. He is the head of the company's migration technique team.




Divine functioned as Principal Advise of the United States Citizenship and Migration Providers from July 2004 up until November 2006, the year in which he was Performing Director, and then Performing Deputy Director. He has actually worked extensively with the EB-5 program secretive technique. He was chosen, as I understand, vice head of state of the Organization to Spend in United States, the national market organization of regional centers.


Divine, we are happy to have you right here. Please go ahead, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE USA (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At the majority of, if all 10,000 slots were utilized, it would be 1 percent of the immigration every year to the USA. It is not near that yet, yet it is expanding and obtaining towards that. Particularly as USCIS, the company that oversees the program, has actually been making the policies more clear and the processes more rational and clear for individuals that are arranging financial investments and for the investors who are spending, more people have actually wanted and able to put effort and money into the process to locate excellent projects and develop them, and after that much more financiers have wanted to spend their money and take the risk and utilize the cash to develop the work that is the factor of the program.

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These tasks do not linger forever, and USCIS recognizes that and are attempting to speed the program, speed up the procedure - EB5 Regional Center Program. That does not suggest that they are unwinding their analysis, and, actually, they prepare to refute applications that are not certifying. And they do so, as was stated


The local facility component of the program is not. It belongs to an appropriations expense 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 long-term, and it needs to be done currently and not nearer to the day of expiration in September.


The procedure takes an excellent while to develop a task EB5 Regional Center Program and after that to get the financiers accepted. And they do not desire their money streaming via up until they have been approved. And the specter of the expiry of this Regional Center Program in September is already discouraging the development of jobs.

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I wish to clarify that the Regional Facility Program is not the like the half-million-dollar thing. The concept of half a million or a million is a function of the routine EB-5 regulation that belongs to the code. It just is a fact that a lot of the regional facilities that are merging investments have actually set those in locations of high joblessness or in backwoods where fifty percent- million-dollar investments are enabled, which makes good sense.