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


The regional facilities, with their half-million schemes, basically undercut the a lot more practical million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they perform in Australia, ought to have to do with creating organization entities, not passive financial investments. It must have to do with creating actual work, not elaborate computations concerning the indirect creation of tasks, which is now part of the regulations.


Maybe that is one of the reasons that it has failed every year to reach the legal objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is too loaded with middlemen, both public and exclusive. The program has more than its share of rumors, which I will certainly get right into later on if anyone is interested.


This is a firm that loves to say yes to candidates, yet as the table in my statement shows, USCIS policemans have a lot more trouble with EB-5 applications than others. I believe that is something that nobody has actually discussed a lot. EB5 Regional Center Program. There are high rates of internal rejections in this program and completely reason

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Seventh, in this program visas most likely to people that can not get them otherwise and to people whose organized investment is really much less, according to the Federal Get, than the ordinary mean internet worth of all American family members in 2007. Let me increase on among my monitorings.


My estimate based upon the capitalists' environment-friendly card applications filed 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 confirmed-- that is my estimate. USCIS does not supply the kind of data that we could utilize on this.


For every $100 of increased international financial investment that year, the EB program contributed one dime. Under a a lot more shaky analytical base, the preliminary applications of prospective immigrant financiers, USCIS is informing reporters that the level 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 listening to me. I eagerly anticipate your comments and questions. [The ready statement of David North looks like a submission for the document.] Chairman Leahy. 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 company's immigration technique team.




Divine functioned as Chief Advice of the United States Citizenship and Immigration Providers from July 2004 up until November 2006, the year in which he was Performing Director, and then Performing Deputy Supervisor. He has worked extensively with the EB-5 program secretive technique. He was elected, as I understand, vice president of the Organization to Invest in USA, the nationwide sector association of local centers.


Divine, we are happy website to have you right here. Please proceed, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, BUY THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At the majority of, if all 10,000 slots were utilized, it would certainly be 1 percent of the immigration annually to the United States. It is not near that yet, yet it is expanding and getting towards that. Particularly as USCIS, the company that oversees the program, has been making the rules more clear and the procedures much more sensible and clear for the individuals that are arranging financial investments and for the capitalists who are investing, even more individuals have actually agreed and able to place initiative and cash into the process to find excellent tasks and create them, and afterwards more capitalists have been willing to invest their cash and take the threat and use the cash to create the jobs that is the point of the program.

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These tasks do not wait about forever, and USCIS comprehends that and are trying to speed up the program, speed the process - EB5 Regional Center Program. That does not imply that they are relaxing their examination, and, actually, they are all set to reject applications that are not certifying. And they do so, as was pointed out


The local center part of the program is not. It is part of an appropriations bill that was enacted in 1992, and ever since that program has actually been expanded five times for 19 years. It is time for it to be long-term, and it needs to be done currently and not nearer to the day of expiration in September.


The procedure takes a good while to develop a job and afterwards to obtain the financiers authorized. And they do not want their money streaming through until they have actually been accepted. And the specter of the expiration of this Regional Facility Program in September is already discouraging the advancement of jobs.

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I wish to make clear that the Regional Center Program is not the very same as the half-million-dollar thing. The concept of half a million or a million is a function of the normal EB-5 legislation that is part of the code. It simply is a truth that a lot of the regional facilities that are pooling financial investments have established those instead of high unemployment or in backwoods where fifty percent- million-dollar financial investments are allowed, and that makes good sense.