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The program is positioned in a really weird and non-helpful administrative area for the stimulation of global investment in the United States. We are providing away too much for also small of a financial investment.


The regional facilities, with their half-million schemes, essentially damaged the much more practical million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, ought to have to do with producing organization entities, not passive investments. It must be about creating actual tasks, not elaborate computations concerning the indirect development of jobs, which is now part of the regulations.


Perhaps that is one of the factors why it has fallen short time after time to reach the legislative goal of 10,000 investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is also filled with intermediaries, both public and private. The program has more than its share of detractions, which I will certainly get right into later if anyone is interested.


This is an agency that likes to claim yes to applicants, however as the table in my statement shows, USCIS policemans have much more trouble with EB-5 applications than others. I think that is something that no one has truly spoken about much. EB5 Regional Center Program. There are high rates of inner rejections in this program and permanently factor

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Seventh, in this program visas go to people who can not get them otherwise and to individuals whose organized financial investment is actually much less, according to the Federal Get, than the average mean internet well worth of all American families in 2007. Allow me increase on one of my observations.


My estimate based upon the investors' permit applications submitted 2 years after the very first investment-- these are the strong ones that continue to be and are authorized. This is 2009-- was that they had about $191 million validated-- that is my estimate. USCIS does not give the type of data that we can make use of on this.


So for every single $100 of enhanced international investment that year, the EB program contributed one dime. Under a far more unsteady statistical base, the preliminary applications of potential immigrant financiers, USCIS is telling journalists that the degree of investment in the just-concluded year was about $1.2 billion. Allow us approve that.

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Thanks for paying attention to me. I expect your remarks and concerns. [The prepared statement of David North looks like a submission for the special info document.] Chairman Leahy. Thank you. 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 immigration technique team.




Divine acted as Chief Advise of the United States Citizenship and Immigration Services from July 2004 till November 2006, the year in which he was Acting Director, and afterwards Performing Deputy Supervisor. He has functioned extensively with the EB-5 program secretive technique. He was elected, as I understand, vice head of state of the Association to Buy USA, the nationwide market organization of local centers.


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, Senator Grassley, and others.


At the majority of, if all 10,000 slots were made use of, it would certainly be 1 percent of the migration annually to the USA. It is not near that yet, but it is growing and obtaining towards that. Specifically as USCIS, the agency that manages the program, has actually been making the policies clearer and the processes a lot more reasonable and clear for individuals that are arranging financial investments and for the capitalists who are spending, more people have actually agreed and able to put effort and money into the process to find good jobs and create them, and after that extra capitalists have been eager go now to spend their cash and take the threat and make use of the cash to produce the jobs that is the point of the program.

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These projects do not wait about forever, and USCIS recognizes that and are attempting to speed the program, speed up the process - EB5 Regional Center Program. That does not mean that they are unwinding their scrutiny, and, as a matter of fact, they prepare to deny applications that are look at this site not certifying. And they do so, as was stated


The regional facility part of the program is not. It is part of an appropriations costs that was passed in 1992, and since then that program has actually been prolonged 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 procedure takes a good while to develop a job and afterwards to obtain the financiers authorized. And they do not desire their cash moving via till they have actually been approved. And the specter of the expiration of this Regional Center Program in September is already preventing the growth of projects.

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I want to clarify that the Regional Facility Program is not the exact same as the half-million-dollar thing. The concept of half a million or a million is a function of the regular EB-5 regulation that becomes part of the code. It just is a fact that the majority of the local centers that are merging financial investments have established those in locations of high unemployment or in backwoods where fifty percent- million-dollar financial investments are enabled, and that makes good sense.