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The program is positioned in a really strange and non-helpful administrative place for the stimulation of international financial investment in the United States. We are providing away as well much for too small of an investment.


The local centers, with their half-million systems, essentially damaged the extra reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they carry out in Australia, should be about creating business entities, not easy financial investments. It needs to have to do with producing genuine tasks, not clarify computations about the indirect development of tasks, which is now part of the legislation.


Perhaps that is one of the reasons it has stopped working every year to get to the legislative goal of 10,000 investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is also full of middlemen, both public and personal. The program has greater than its share of rumors, which I will certainly enter later if any person is interested.


This is a company that loves to claim yes to applicants, yet as the table in my statement shows, USCIS police officers have much extra difficulty with EB-5 applications than others. I think that is something that no one has truly spoken about a lot. EB5 Regional Center Program. There are high rates of inner denials in this program and completely reason

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Seventh, in this program visas most likely to individuals that could not get them otherwise and to people whose scheduled financial investment is actually less, according to the Federal Reserve, than the typical mean total assets of all American families in 2007. Let me expand on one of my observations.


My estimate based on the financiers' environment-friendly card applications filed 2 years after the very first investment-- these are the solid ones that continue to be and are approved. This is 2009-- was that they had regarding $191 million validated-- that is my quote. USCIS does not offer the type of information that we might make use of on this.


For every $100 of enhanced foreign investment that year, the EB program added one cent. Under a a lot more unsteady statistical base, the preliminary applications of potential immigrant capitalists, USCIS is informing journalists that the level of investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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Thanks for listening to me. I expect your remarks and inquiries. [The prepared statement of David North shows up as an entry for the document.] Chairman Leahy. Thank you. Our following witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's immigration method group.




Divine functioned as Principal Guidance of the USA Citizenship and Immigration Services from July 2004 till November 2006, the year in which he was Acting Supervisor, and afterwards Acting Deputy Director. He has visit actually worked thoroughly with the EB-5 program in exclusive technique. He was elected, as I recognize, vice president of the Association to Invest in U.S.A., the national industry organization of regional centers.


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


At most, if all 10,000 slots were utilized, it would be 1 percent of the immigration every year to the United States. It is not near that yet, but it is expanding and getting towards that. Particularly as USCIS, the company that looks after the program, has actually been making the policies clearer and the procedures much more logical and clear for the people who are arranging financial investments and for the capitalists that are investing, more individuals have actually wanted and able to place initiative and cash right into the process to find great jobs and develop them, and afterwards more financiers have actually been eager to spend their money and take the danger and make use of the money look here to develop the work that is the point of the program.

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These tasks do not wait about permanently, and USCIS comprehends that and are trying to speed the program, speed the process - EB5 Regional Center Program. That does not indicate that they are unwinding their analysis, and, in truth, they prepare to refute applications that are not certifying. And they do so, as was pointed out


The local center part of the program is not. It becomes part of an appropriations costs that was established in 1992, and ever since that program has been prolonged five times for 19 years. It is time for it to be my company irreversible, and it requires to be done currently and not nearer to the date of expiration in September.


The procedure takes a good while to work up a job and after that to get the capitalists accepted. And they do not desire their money streaming via till they have been accepted. And the specter of the expiration of this Regional Facility Program in September is already inhibiting the advancement of projects.

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I want to make clear that the Regional Facility Program is not the very same as the half-million-dollar point. The idea of half a million or a million is a function of the normal EB-5 legislation that belongs to the code. It just is a truth that a lot of the regional facilities that are merging financial investments have established those instead of high unemployment or in rural locations where half- million-dollar financial investments are enabled, which makes good sense.