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The program is positioned in an extremely strange and non-helpful bureaucratic location for the stimulation of global investment in the United States. We are providing away as well much for too little of an investment.


The regional facilities, with their half-million plans, basically damaged the more practical million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they carry out in Australia, need to be about creating organization entities, not easy financial investments. It needs to be about producing genuine tasks, not clarify estimations regarding the indirect production of work, which is currently component of the legislation.


Maybe that is one of the reasons that it has actually failed time after time to reach the legislative objective of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is too full of middlemen, both public and personal. The program has more than its share of scandals, which I will certainly enter into later if any person is interested.


This is a firm that likes to say yes to applicants, but 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 actually discussed much. EB5 Regional Center Program. There are high prices of inner rejections in this program and permanently factor

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Seventh, in this program visas go to people that could not get them any kind of various other means and to individuals whose organized investment is in fact much less, according to the Federal Reserve, than the ordinary mean net worth of all American families in 2007. Allow me expand on among my monitorings.


My price quote based upon the capitalists' permit applications submitted 2 years after the initial financial investment-- these are the strong ones that stay and are approved. This is 2009-- was that they had concerning $191 million verified-- that is my price quote. USCIS does not provide the type of data that we could use on this.


For every $100 of increased international investment that year, the EB program added one cent. Under a far more wobbly analytical base, the first applications of would-be immigrant investors, USCIS is informing reporters that the degree of financial investment in the just-concluded year was concerning $1.2 billion. Let us approve that.

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Thank you for paying attention to me. I look onward to your remarks and inquiries. [The prepared declaration of David North shows up as a submission for the document.] Chairman Leahy. Thank you. 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 method team.




Divine worked as Principal Advice of the USA Citizenship and Immigration Solutions from July 2004 up until November 2006, the year in which he was Performing Supervisor, and after that Acting Deputy Director. He has actually functioned extensively with the EB-5 program in exclusive technique. He was chosen, as I comprehend, vice head of state of the Organization to Invest in U.S.A., the nationwide industry organization of local.


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


At a lot of, if all 10,000 slots were utilized, it would be 1 percent of the immigration annually to the USA. It is not near that yet, however it is growing and getting towards that. Specifically as USCIS, the agency that manages the program, has been making the regulations more clear and the procedures much more check here sensible and clear for individuals that are organizing investments and for the capitalists who are investing, even more individuals have been eager and able to put initiative and cash into the process to discover good tasks and develop them, and after that much more investors have actually been prepared to invest their cash and take the threat and use the money to produce the work that is the factor of the program.

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These projects do not wait around permanently, and USCIS recognizes that and are attempting to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not suggest that they are relaxing their scrutiny, and, as a matter of fact, they prepare to refute applications that are not qualifying. And they do so, as was stated


The local center component of the program is not. It is part of an appropriations costs that was enacted in 1992, and since then that program has actually been extended 5 times for 19 years. It is time for it to be permanent, and it requires to be done now 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 want their cash moving through till they have actually been authorized. And the specter of the expiry of this Regional Center Program in September is already discouraging the growth of projects.

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I want to make clear 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 regular EB-5 law that becomes part of the code. It just is a truth that many of the regional centers that are pooling investments have actually established those instead of high unemployment or in backwoods where fifty percent- million-dollar financial investments are allowed, and that makes sense.