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The program is positioned in a really weird and non-helpful bureaucratic area for the excitement of worldwide financial investment in the United States. We are offering away as well much for also little of an investment.


The regional facilities, with their half-million plans, basically damaged the a lot more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, should be about producing service entities, not passive investments. It ought to have to do with producing actual work, not specify calculations concerning the indirect creation of jobs, which is currently component of the legislation.


Probably that is among the reasons why it has stopped working time after time to get to the legal goal of 10,000 investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is too loaded with intermediaries, both public and personal. The program has more than its share of scandals, which I will obtain right into later if anyone is interested.


This is a company that likes to say yes to applicants, but as the table in my testament reveals, USCIS officers have far more difficulty with EB-5 applications than others. I think that is something that no one has actually discussed a lot. EB5 Regional Center Program. There are high prices of inner denials in this program and permanently factor

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Seventh, in this program visas go to individuals that might not obtain them differently and to people whose scheduled financial investment is really much less, according to the Federal Reserve, than the ordinary mean total assets of all American families in 2007. Let me expand on among my monitorings.


My price quote based on the capitalists' permit applications filed 2 years after the initial financial investment-- these are the solid ones that remain and are accepted. This is 2009-- was that they had about $191 million confirmed-- that is my price quote. USCIS does not supply the sort of data that we could utilize on this.


For every $100 of increased foreign financial investment that year, the EB program added one dime. Under a much extra wobbly statistical base, the preliminary applications of prospective immigrant capitalists, USCIS is telling reporters that the degree of financial investment in the just-concluded year was concerning $1.2 billion. Let us accept that.

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Thank you for listening to me. I expect your comments and questions. [The prepared statement of David North appears as an entry for the record.] Chairman Leahy. Thank you. Our next witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's immigration practice group.




Divine acted as Principal Advice of the United States Citizenship and Immigration Providers from July 2004 till November 2006, the year in which he was Acting Director, and after that Acting Deputy Supervisor. He has functioned extensively with the EB-5 program secretive technique. He was elected, as I comprehend, vice head of state of the Organization to Invest in United States, the national industry association of regional.


Divine, we are happy to have you right here. Please go in advance, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, PURCHASE THE U.S.A. (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At a lot of, if all continue reading this 10,000 ports were made use of, it would be 1 percent of the migration annually to the USA. It is not near that yet, yet it is expanding and getting toward that. Especially as USCIS, the firm here that oversees the program, has been making the rules more clear and the procedures more rational and clear for the individuals that are organizing financial investments and for the financiers who are investing, even more individuals have been prepared and able to put effort and money into the procedure to discover great jobs and establish them, and after that a lot more capitalists have actually agreed to spend their cash and take the danger and utilize the money to develop the jobs that is the factor of the program.

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These projects do not linger for life, and USCIS comprehends that and are trying to speed up the program, speed up the process - EB5 Regional Center Program. That does not imply that they are relaxing their analysis, and, in truth, they prepare to refute applications that are not qualifying. And they do so, as was mentioned


The local facility part of the program is not. It belongs to an appropriations expense that was passed in 1992, and since then that program has been prolonged five times for 19 years. It is time for it to be long-term, and it needs to be done now and not nearer to the date of expiration in September.


The process takes a good while to develop here are the findings a project and after that to get the capitalists authorized. And they do not want their money moving with up until they have been authorized. And the specter of the expiration of this Regional Center Program in September is currently preventing the growth of tasks.

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I want to make clear 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 feature of the routine EB-5 regulation that becomes part of the code. It just is a fact that a lot of the regional centers that are merging financial investments have established those instead of high joblessness or in backwoods where half- million-dollar financial investments are enabled, which makes good sense.