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The program is positioned in an extremely odd and non-helpful administrative location for the stimulation of worldwide financial investment in the United States. We are giving away too much for as well tiny of a financial investment.


The local centers, with their half-million schemes, essentially damaged the much more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they perform in Australia, ought to be concerning developing company entities, not passive investments. It ought to have to do with developing actual tasks, not clarify estimations regarding the indirect creation of jobs, which is now part of the legislation.


Perhaps that is one of the reasons it has stopped working year after year to reach the legal objective of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is too filled up with intermediaries, both public and exclusive. The program has greater than its share of detractions, which I will get into later if any person is interested.


This is an agency that likes to say yes to applicants, however as the table in my testimony reveals, USCIS police officers have far more difficulty with EB-5 applications than others. I think that is something that nobody has truly 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 can not obtain them differently and to individuals whose scheduled financial investment is actually much less, according to the Federal Book, than the ordinary mean total assets of all American families in 2007. Let me expand on one of my observations.


My quote based upon the financiers' copyright applications submitted 2 years after the first financial investment-- these are the solid ones that continue to be and are accepted. This is 2009-- was that they had concerning $191 million verified-- that is my price quote. USCIS does not give the kind of information that we can utilize on this.


So for each $100 of raised international investment that year, the EB program contributed one penny. Under a a lot more shaky analytical base, the initial applications of potential immigrant capitalists, USCIS is informing reporters that the level of investment in the just-concluded year had to do with $1.2 billion. Allow more info us accept that.

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Thank you for paying attention to me. I eagerly anticipate your comments and inquiries. [The ready declaration of David North shows up as a submission for the record.] Chairman Leahy. Thanks. 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 technique group.




Divine offered as Principal Advise of the USA Citizenship and Migration Solutions from July 2004 till November 2006, the year in which he was Performing Director, and afterwards Performing Deputy Director. He has actually functioned extensively with the EB-5 program secretive technique. He was chosen, as I recognize, vice head of state of the Organization to Spend in U.S.A., the national sector association of regional.


Divine, we are thrilled to have you here. Please proceed, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, 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, Senator Grassley, and others. Thank you for having me.


At most, if all 10,000 slots were used, it would certainly be 1 percent of the immigration annually to the United States. It is not near that yet, however it is growing and obtaining towards that. Particularly as USCIS, the agency that oversees the program, has actually been making the policies clearer and the procedures a lot more rational and clear for the people who are arranging financial investments and for the investors that are investing, even more individuals have actually agreed and able to put initiative and cash right into the procedure to find excellent jobs and establish them, and afterwards extra capitalists have wanted to spend their money and take the threat and use the cash to develop the jobs that is the point of the program.

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These jobs do not wait about for life, and USCIS comprehends that and are attempting to speed up the program, speed the process - EB5 Regional Center Program. That does not mean 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 discussed


The local center part of the program is not. It is component of an appropriations costs that was established in 1992, and ever since that program has actually been prolonged 5 times for 19 years. It is time for it to be long-term, and it requires to be done now and not nearer to the day of expiration in September.


The process takes a great while to work up a task and after that to obtain the financiers approved. And they do not want their money flowing via until they have actually been authorized. And the specter of the expiration of this Regional Center Program in September is already inhibiting the advancement of tasks.

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I wish to clear up that the Regional Facility Program is not the like the half-million-dollar point. The idea of half a million or a million is a feature of the routine EB-5 law that becomes part of the code. It just is a reality that a lot of the regional centers that are pooling investments have established those in locations of high unemployment or in backwoods where half- million-dollar financial investments are permitted, which makes feeling.