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The program is placed in a very strange and non-helpful administrative location for the excitement of international financial investment in the United States. We are providing away too much for also tiny of an investment.


The local facilities, with their half-million schemes, essentially damaged the more practical million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, need to be regarding creating organization entities, not passive investments. It should have to do with producing genuine tasks, not specify calculations about the indirect development of jobs, which is now component of the legislation.


Maybe that is among the reasons that it has stopped working every year to reach the legal objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is too loaded with intermediaries, both public and exclusive. The program has greater than its share of scandals, which I will obtain into later on if any person is interested.


This is a company that enjoys to say yes to applicants, however as the table in my testament reveals, USCIS policemans have far more trouble with EB-5 applications than others. I think that is something that nobody has really discussed much. EB5 Regional Center Program. There are high prices of internal denials in this program and for excellent factor

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Seventh, in this program visas most likely to people that could not obtain them differently and to individuals whose organized investment is actually much less, according to the Federal Get, than the average mean web well worth of all American families in 2007. Allow me expand on one of my monitorings.


My estimate based on the investors' permit applications submitted 2 years after the initial investment-- these are the strong ones that remain and are accepted. This is 2009-- was that they had about $191 million verified-- that is my estimate. USCIS does not give the kind of data that we might utilize on this.


So for every single $100 of boosted international investment that year, the EB program added one cent. Under a far more unsteady statistical base, the initial applications of prospective immigrant investors, USCIS is telling journalists that the degree of financial investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thank you for paying attention to me. I look forward to your comments and concerns. [The prepared declaration of David North looks like a submission for the document.] 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 practice team.




Divine worked as Principal Advice of the United States Citizenship and Migration Providers from July 2004 up until November 2006, the year in which he was Acting Supervisor, and after that Performing Deputy Supervisor. He has worked thoroughly with the EB-5 program in personal technique. He was elected, as I recognize, vice head of state of the Association to Invest in United States, the national market organization of local.


Divine, we are happy to have you here. Please go on, 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. Thank you, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At many, if all 10,000 ports were used, it would be 1 percent of the migration every year to the United States. It is not near that yet, yet it is growing and getting towards that. Specifically as USCIS, the agency that looks after the program, has actually been making the regulations more clear and the procedures a lot more rational and clear for individuals that are arranging financial investments and for the capitalists that are spending, even more people have actually wanted and able to put effort and money right into the procedure to discover great jobs and create them, and after that more capitalists have actually agreed to spend their money and take the risk and utilize the money to create the work that is the factor of the program.

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These jobs do not wait around forever, and USCIS recognizes that and are trying to speed the program, speed the procedure - EB5 Regional Center Program. That does not suggest that they here are relaxing their analysis, and, as a matter of fact, they are ready to reject applications that are not qualifying. And they do so, as was mentioned


The local facility part of the program is not. It belongs to an appropriations expense that was enacted in 1992, and given that then that program has actually been extended five times for 19 years. It is time for it to be permanent, and it needs to be done now and not nearer to the date of expiration in September.


The process takes a good while to function up a task and then to get the financiers accepted. And they do not want their cash flowing through up until they have actually been accepted. And the specter of the expiration of this Regional Facility Program in September is already inhibiting the development of jobs.

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I want to clear up that the Regional Center Program is not the exact same as the half-million-dollar thing. The concept of half a million or a million is a feature of the routine EB-5 regulation that is component of the code. It simply is a reality that most of the local facilities that are pooling investments have set those in places of high joblessness or in country areas where fifty percent- million-dollar financial investments are permitted, and that makes feeling.