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The program is put in an extremely weird and non-helpful governmental place for the excitement of worldwide investment in the United States. We are providing away also much for as well little of a financial investment.


The local centers, with their half-million systems, essentially damaged the much more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they do in Australia, need to have to do with creating organization entities, not passive investments. It ought to be regarding creating actual tasks, not clarify computations about the indirect creation of work, which is currently component of the legislation.


Maybe that is just one of the reasons that it has failed every year to reach the legislative objective of 10,000 financial 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 even more than its share of scandals, which I will certainly enter into later if anybody is interested.


This is a firm that enjoys to say yes to candidates, but as the table in my testament reveals, USCIS police officers have much extra problem with EB-5 applications than others. I think that is something that nobody has really spoken about a lot. EB5 Regional Center Program. There are high rates of interior denials in this program and permanently factor

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Seventh, in this program visas most likely to individuals that could not obtain them differently and to people whose planned investment is actually much less, according to the Federal Book, than the average mean internet well worth of all American family members in 2007. Let me expand on one of my monitorings.


My estimate based on the capitalists' permit applications submitted 2 years after the very first investment-- these are the strong ones that continue to be and are accepted. This is 2009-- was that they had about $191 million confirmed-- that is my quote. USCIS does not provide the sort of data that we might make use of on this.


For every $100 of raised international investment that year, the EB program added one cent. Under a much extra shaky statistical base, the preliminary applications of prospective immigrant financiers, USCIS is informing journalists that the level of investment in the just-concluded year had to do with $1.2 billion. Let us accept that.

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




Divine worked as Chief Advice of the United States Citizenship and Migration Services from July 2004 till November 2006, the year in which he was Acting Director, and after that Acting Replacement Supervisor. He has functioned extensively with the EB-5 program in exclusive practice. He was elected, as I recognize, vice president of the Association to Spend in United States, the national industry association of local.


Divine, we are delighted to have you here. Please go ahead, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, PURCHASE THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At a lot of, if all 10,000 slots were used, it would be 1 percent of the migration here annually to the United States. It is not near that yet, yet it is growing and getting toward that. Especially as USCIS, the agency that oversees the program, has actually been making the policies clearer and the procedures a lot more reasonable and clear for individuals who are organizing financial investments and for the financiers who are spending, more individuals have actually wanted and able to put initiative and money into the process to find good jobs and develop them, and afterwards extra capitalists have agreed to invest their money and take the threat and utilize the cash to create the jobs that is the factor of the program.

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These tasks do not wait about for life, and USCIS comprehends that and are attempting to speed the program, speed the process - EB5 Regional Center Program. That does not mean that they are relaxing their scrutiny, and, actually, they are prepared to reject applications that are not certifying. And they do so, as was mentioned


The local facility part of the program is not. It is part of an appropriations costs that was enacted in 1992, and because then that program has actually been expanded 5 times for 19 years. It is time for it to be irreversible, and it requires to be done now and not nearer to the day of expiration in September.


The procedure takes an excellent while to work up a project and afterwards to obtain the capitalists authorized. And they do not want their money moving with up until they have been approved. And the specter of the expiration of this Regional Facility Program in September is currently discouraging the growth of jobs.

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I would love to clear up that the Regional Facility Program is not the like the half-million-dollar thing. The idea of half a million or a million is a feature of the regular EB-5 law that is part of the code. It just is a reality that the majority of the regional centers that are pooling financial investments have actually set those in locations of high unemployment or in backwoods where half- million-dollar investments are enabled, and that makes feeling.