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The program is positioned in an extremely odd and non-helpful governmental location for the stimulation of global financial investment in the United States. We are providing away too much for as well little of a financial investment.


The local centers, with their half-million plans, essentially damaged the more practical million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they perform in Australia, ought to have to do with developing company entities, not passive investments. It should be about developing genuine jobs, not specify calculations about the indirect creation of jobs, which is now part of the legislation.


Maybe that is one of the reasons it has actually fallen short time after time to reach the legal objective of 10,000 investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is too loaded with intermediaries, both public and private. The program has more than its share of detractions, which I will get right into later if anyone is interested.


This is an agency that likes to state yes to candidates, however as the table in my statement reveals, USCIS officers have much more difficulty with EB-5 applications than others. I think that is something that no one has actually truly spoken about a lot. EB5 Regional Center Program. There are high rates of interior denials in this program and for great factor

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Seventh, in this program visas go to people who could not get them otherwise and to individuals whose scheduled investment is really less, according to the Federal Reserve, than the average mean web worth of all American families in 2007. Let me increase on among my observations.


My estimate based upon the financiers' eco-friendly card applications filed 2 years after the first financial investment-- these are the solid ones that stay and are approved. This is 2009-- was that they had about $191 million verified-- that is my price quote. USCIS does not offer the kind of information that we can use on this.


So for each $100 of raised foreign investment that year, the EB program contributed one cent. Under a far more wobbly analytical base, the initial applications of prospective immigrant financiers, USCIS is telling reporters that the degree of investment in the just-concluded year was about $1.2 billion. Allow us accept that.

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Thanks for paying attention to me. I look forward to your comments and inquiries. [The prepared statement of David North looks like a submission for the record.] Chairman Leahy. Thanks. Our following witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's migration practice group.




Divine functioned as Chief special info Counsel of the USA Citizenship and Migration Solutions from July 2004 till November 2006, the year in which he was Acting Director, and after that Acting Replacement Director. He has actually functioned extensively with the EB-5 program secretive method. He was elected, as I understand, vice president of the Organization to Invest in U.S.A., the nationwide market organization of regional.


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


At the majority of, if all 10,000 slots were used, it would certainly be 1 percent of the immigration every year to the USA. It is not near that yet, but it is growing and obtaining towards that. Particularly as USCIS, the company that supervises the program, has been making the regulations more clear and the processes much more sensible and clear for the individuals who are arranging financial investments and for the investors who are investing, more people have actually agreed and able to place initiative and cash right into the procedure to find good tasks and create them, and afterwards much more capitalists have been eager to invest their money and take the risk and use the money to create the work that is the factor of the program.

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These projects do not wait around for life, and USCIS recognizes that and are attempting to speed the program, speed the process - EB5 Regional Center Program. That does not suggest that they are unwinding their examination, and, in fact, they prepare to refute 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 expense that was established in 1992, and given that then that program has actually been extended five times for 19 years. It is time for it to be long-term, and it requires to be done currently and not nearer to the day of expiration i thought about this in September.


The process our website takes a great while to function up a task and afterwards to obtain the investors approved. And they do not want their money flowing through until they have been authorized. And the specter of the expiration of this Regional Center Program in September is already dissuading the advancement of jobs.

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I wish to clarify that the Regional Center Program is not the like the half-million-dollar point. The idea of half a million or a million is a function of the normal EB-5 regulation that becomes part of the code. It just is a reality that a lot of the local facilities that are pooling investments have actually established those in locations of high unemployment or in backwoods where half- million-dollar financial investments are permitted, and that makes sense.