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The program is positioned in an extremely strange and non-helpful administrative area for the excitement of international investment in the United States. We are giving away too much for also small of a financial investment.


The regional facilities, with their half-million systems, basically damaged the a lot more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they perform in Australia, should be about creating organization entities, not passive financial investments. It ought to have to do with developing genuine work, not clarify calculations regarding the indirect production of jobs, which is currently part of the regulation.


Perhaps that is among the reasons it has stopped working every year to reach the legislative goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is also loaded with intermediaries, both public and personal. The program has greater than its share of scandals, which I will get into later if any person is interested.


This is a firm that enjoys to state yes to applicants, but as the table in my testament shows, USCIS policemans have a lot more trouble with EB-5 applications than others. I assume that is something that no one has actually actually talked about a lot. EB5 Regional Center Program. There are high prices of internal rejections in this program and completely factor

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Seventh, in this program visas go to individuals who could not get them otherwise and to individuals whose scheduled financial investment is actually much less, according to the Federal Book, than the average mean total assets of all American family members in 2007. Allow me broaden on one of my monitorings.


My price quote based on the capitalists' permit applications filed 2 years after the very first financial investment-- these are the solid ones that stay and are accepted. This is 2009-- was that they had concerning $191 million validated-- that is my estimate. USCIS does not give the sort of data that we could make use of on this.


So for every $100 of increased international investment that year, the EB program added one cent. Under a much extra unsteady analytical base, the first applications of would-be immigrant financiers, USCIS is Read Full Report 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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Thank you for paying attention to me. I expect your comments and questions. [The prepared declaration of David North appears as a submission 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 firm's migration method group.




Divine acted as Principal Guidance of the USA Citizenship and Immigration Providers from July 2004 until November 2006, the year in which he was Acting Director, and afterwards Performing Replacement Supervisor. He has worked thoroughly with the EB-5 program secretive look at this now technique. He was elected, as I recognize, vice president of the Organization to Invest in United States, the national market organization of regional 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 United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others.


At the majority of, if all 10,000 ports were used, it would certainly be 1 percent of the migration each year to the USA. 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 been making the policies more clear and the procedures extra rational and clear for individuals who site are organizing investments and for the financiers that are investing, even more people have wanted and able to place initiative and cash right into the procedure to find excellent projects and develop them, and then a lot more investors have agreed to spend their cash and take the threat and make use of the cash to develop the work that is the factor of the program.

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These projects do not linger forever, and USCIS recognizes that and are trying to speed the program, speed the procedure - EB5 Regional Center Program. That does not imply that they are unwinding their examination, and, actually, they prepare to refute applications that are not certifying. And they do so, as was pointed out


The local center component of the program is not. It becomes part of an appropriations bill that was passed in 1992, and given that then that program has been extended five times for 19 years. It is time for it to be irreversible, and it requires to be done now and not nearer to the date of expiration in September.


The process takes an excellent while to work up a task and after that to obtain the capitalists approved. And they do not want their cash flowing via up until they have been accepted. And the specter of the expiration of this Regional Facility Program in September is already preventing the development of projects.

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I wish to make clear that the Regional Facility Program is not the exact same as the half-million-dollar point. The concept of half a million or a million is a function of the regular EB-5 regulation that belongs to the code. It just is a fact that the majority of the local centers that are merging investments have established those instead of high unemployment or in backwoods where fifty percent- million-dollar financial investments are enabled, which makes good sense.