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The program is positioned in a very strange and non-helpful bureaucratic location for the stimulation of global financial investment in the United States. We are giving away also much for too tiny of an investment.


The local centers, with their half-million schemes, basically damaged the more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, should be concerning producing business entities, not passive financial investments. It ought to be about producing actual tasks, not elaborate estimations about the indirect production of jobs, which is now component of the legislation.


Probably that is one of the reasons it has actually stopped working year after year to reach the legal objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is as well loaded with middlemen, both public and private. The program has more than its share of rumors, which I will get involved in later if anybody is interested.


This is a company that loves to state yes to applicants, yet as the table in my testament shows, USCIS policemans have far more difficulty with EB-5 applications than others. I assume that is something that no one has actually really discussed much. EB5 Regional Center Program. There are high rates of interior rejections in this program and permanently reason

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Seventh, in this program visas go to people who might not get them any other method and to individuals whose scheduled financial investment is really much less, according to the Federal Book, than the average mean net worth of all American families in 2007. Allow me expand on one of my monitorings.


My quote based on the capitalists' copyright applications filed 2 years after the initial financial investment-- these are the solid ones that remain and are approved. This is 2009-- was that they had concerning $191 million verified-- that is my estimate. USCIS does not provide the sort of information that we might use on this.


So for every $100 of raised foreign investment that year, the EB program contributed one dime. Under a far more wobbly analytical base, the initial applications of would-be immigrant capitalists, USCIS is informing journalists that the degree of investment in the just-concluded year had to do with $1.2 billion. Let us accept that.

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Thanks for paying attention to me. I look ahead to your remarks and concerns. [The prepared statement of David North appears as an entry for the record.] Chairman Leahy. Thank you. Our following witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's migration practice team.




Divine acted as Chief Advise of the United States Citizenship and Immigration Providers from July 2004 up until November 2006, the year in which he was Acting Supervisor, and after that Performing Replacement Director. He has worked extensively with the EB-5 program in exclusive technique. He was elected, as I recognize, vice head of state of the Organization to Invest in United States, the nationwide industry organization of local facilities.


STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At many, if all 10,000 slots were made use of, it would certainly be 1 percent of the immigration every year to the United States. It is not near that yet, yet it is expanding and obtaining towards that. Specifically as USCIS, the company that looks after the program, has actually been making the guidelines clearer and the processes more sensible and clear for the people that are arranging investments and for the investors who are investing, even more individuals have wanted and able to put initiative and money right into the process to discover excellent jobs and establish them, and after that more investors have been prepared to spend their money and take the risk and make use of the cash to create the work that is the factor of the program.

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These projects do not wait about permanently, and USCIS understands that and are attempting to speed the program, speed the procedure - EB5 Regional Center Program. That does not mean that they are unwinding their scrutiny, and, in truth, they are all set to refute applications that are not qualifying. And they do so, as was discussed


The local facility part of the program is not. It becomes part of an appropriations expense that was established in 1992, and ever since that program has actually been prolonged five times for 19 years. It is time for it to be check here long-term, and it requires to be done now and not nearer to the date of expiry in September.


The process takes a good while to function up a task and after that to get the capitalists approved. And they do not want their cash moving through until they have actually been approved. And the specter of the expiry of this Regional Facility Program in September is already inhibiting the advancement of jobs.

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I would like to clarify that the Regional Center Program is not the like the half-million-dollar point. The concept of half a million or a million is a feature of the routine EB-5 regulation that becomes part of the code. It simply is a reality that a lot of the regional facilities that are merging financial investments have established those in locations of high unemployment or in backwoods where half- million-dollar financial investments are enabled, and that makes feeling.