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The program is positioned in a really odd and non-helpful administrative location for the stimulation of worldwide financial investment in the United States. We are providing away also much for also little of an investment.


The local facilities, with their half-million plans, essentially damaged the a lot more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they do in Australia, must have to do with producing company entities, not passive financial investments. It must have to do with creating real work, not clarify computations about the indirect development of jobs, which is currently component of the regulations.


Perhaps that is one of the reasons that it has actually stopped working every year to reach the legal objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is as well loaded with intermediaries, both public and personal. The program has greater than its share of scandals, which I will enter into later on if anyone is interested.


This is an agency that likes to state yes to applicants, however as the table in my testimony reveals, USCIS officers have far more trouble with EB-5 applications than others. I think that is something that no one has actually truly talked about a lot. EB5 Regional Center Program. There are high rates of inner denials in this program and completely factor

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Seventh, in this program visas most likely to people that could not get them any kind of other method and to individuals whose scheduled investment is in fact less, according to the Federal Book, than the typical mean web well worth of all American households in 2007. Allow me increase on among my monitorings.


My estimate based upon the investors' permit applications submitted 2 years after the first investment-- these are the solid ones that continue to be and are approved. This is 2009-- was that they had about $191 million validated-- that is my price quote. USCIS does not provide the type of information that we might use on this.


So for each $100 of boosted international financial investment that year, the EB program added one cent. Under a far more shaky analytical base, the preliminary applications of prospective immigrant capitalists, USCIS is informing reporters that the degree of investment in the just-concluded year was regarding $1.2 billion. Allow us approve that.

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Thanks for listening to me. I look forward to your remarks and inquiries. [The prepared declaration of David North looks like a submission for the document.] Chairman Leahy. Thanks. Our next witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's migration practice team.




Divine acted as Principal Advice of the USA Citizenship and Migration Solutions from July 2004 up until November 2006, the year in which he was Acting Director, and after that Performing Deputy Supervisor. He has worked extensively with the EB-5 program secretive technique. He was chosen, as I comprehend, vice head of state of the Organization to Purchase United States, the nationwide sector organization of local facilities.


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


At a lot of, if all 10,000 slots were used, it would 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 looks after the program, has actually been making the policies more clear and the processes much more reasonable and clear for the people who are organizing financial investments and for the capitalists who are spending, even more people have been willing and able to place initiative and money right into the procedure to discover excellent tasks and establish them, and afterwards much more financiers have actually wanted to spend their money and take the risk and utilize the cash to develop the tasks that is the point of the program.

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These projects do not linger forever, and USCIS comprehends 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, actually, they are all set to deny applications that are not qualifying. And they do so, as was mentioned


The local facility component of the program is not. It belongs to an appropriations bill that was enacted in 1992, and ever since that program has been prolonged 5 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 date of expiration in September.


The procedure takes a good more info while to develop a project and after that to obtain the financiers authorized. And they do not want their cash streaming through till they have actually been accepted. And the specter of the expiration of this Regional Facility Program in September is already preventing the advancement of tasks.

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I want to make clear that the Regional Center Program is not the exact same as the half-million-dollar point. The idea of half a million or a million is a feature of the regular EB-5 legislation that becomes part of the code. It simply is a reality that the majority of the local facilities that are pooling investments have actually established those in locations of high joblessness or in country areas where half- million-dollar investments are enabled, which makes good sense.