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The program is positioned in an extremely weird and non-helpful governmental area for the stimulation of worldwide investment in the United States. We are providing away too much for too little of a financial investment.


The local facilities, with their half-million systems, essentially undercut the much more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they carry out in Australia, should have to do with creating company entities, not easy financial investments. It should have to do with developing real tasks, not clarify computations concerning the indirect creation of jobs, which is now part of the regulations.


Probably that is just one of the reasons it has failed every year to get to the legislative goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is as well filled up with middlemen, both public and private. The program has even more than its share of scandals, which I will obtain right into later on if anybody is interested.


This is a firm that loves to say yes to applicants, yet as the table in my testimony reveals, USCIS police officers have far more difficulty with EB-5 applications than others. I believe that is something that nobody has actually truly spoken about a lot. EB5 Regional Center Program. There are high rates of inner rejections in this program and completely factor

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Seventh, in this program visas go to people who could not get them otherwise and to people whose scheduled investment is in fact less, according to the Federal Book, than the ordinary mean web well worth of all American households in 2007. Let me expand on one of my observations.


My price quote based upon the financiers' environment-friendly card applications filed 2 years after the initial investment-- these are the strong ones that continue to be and are authorized. This is 2009-- was that they had regarding $191 million validated-- that is my price quote. USCIS does not provide the type of information that we might make use of on this.


For every $100 of raised international investment that year, the EB program contributed one cent. Under a a lot more wobbly statistical base, the first applications of potential immigrant investors, USCIS is telling reporters that the level of 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 anticipate your remarks and concerns. [The ready statement of David North appears as a submission for the record.] Chairman Leahy. Homepage Thank you. Our following witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's immigration practice group.




Divine acted as Principal Counsel of the USA Citizenship and Migration Providers from July 2004 till November 2006, the year in which he was Acting Director, and afterwards Performing Replacement Director. He has functioned thoroughly with the EB-5 program in exclusive technique. He was elected, as I understand, vice president of the Association to Spend in USA, the national sector association of regional.


STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At a lot of, if all 10,000 ports were made use of, it would certainly be 1 percent of the migration every year to the United States. It is not near that yet, however it is growing and getting towards that. Specifically as USCIS, the firm that oversees the program, has actually see this been making the rules clearer and the procedures extra rational and clear for the people that are arranging financial investments and for the capitalists that are investing, even more people have actually agreed and able to place effort and money right into the procedure to locate good tasks and establish them, and after that extra financiers have been ready to spend their cash and take the risk and utilize the cash to develop the work that is the factor of the program.

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These projects do not wait about forever, and USCIS recognizes that and are trying to speed the program, speed up the process - EB5 Regional Center Program. That does not indicate that they are unwinding their scrutiny, and, as a matter of fact, they are prepared to refute applications that are not qualifying. 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 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 procedure takes a great while to work up a job and afterwards to get the investors approved. And they do not desire their cash streaming via till they have actually been approved. And the specter of the expiry of this Regional Facility Program in September is currently discouraging the development of tasks.

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I wish to make his explanation clear that the Regional Facility Program is not the like the half-million-dollar point. The concept of half a million or a million is a feature of the regular EB-5 law that belongs to the code. It just is a truth that a lot of the regional facilities that are merging investments have actually set those in places of high joblessness or in country locations where half- million-dollar investments are allowed, which makes feeling.