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The program is put in a really odd and non-helpful administrative area for the excitement of worldwide financial investment in the United States. We are offering away too much for also tiny of a financial investment.


The regional facilities, with their half-million plans, basically undercut the more practical million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they perform in Australia, ought to be about producing business entities, not easy financial investments. It should be about creating actual work, not elaborate calculations regarding the indirect development of tasks, which is currently part of the regulations.


Maybe that is among the reasons that it has failed every year to reach the legislative goal of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is as well filled up with intermediaries, both public and exclusive. The program has even more than its share of detractions, which I will certainly obtain into later if anyone is interested.


This is an agency that likes to claim yes to applicants, however as the table in my testament reveals, USCIS officers have a lot more trouble with EB-5 applications than others. I assume that is something that no one has really talked around much. EB5 Regional Center Program. There are high rates of internal rejections in this program and completely reason

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Seventh, in this program visas most likely to individuals who might not get them any other means and to people whose scheduled investment is in fact less, according to the Federal Book, than the typical mean total assets of all American family members in 2007. Allow me increase on among my monitorings.


My price quote based on the capitalists' permit applications submitted 2 years after the initial financial investment-- these are the strong ones that remain and are accepted. This is 2009-- was that they had concerning $191 million verified-- that is my quote. USCIS does not provide the type of information that we could utilize on this.


For every $100 of raised international investment that year, the EB program added one dime. Under a a lot more shaky analytical base, the initial applications of potential immigrant financiers, USCIS is informing journalists that the level of investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thanks for listening to me. I look onward to your remarks and concerns. [The prepared statement of David North looks like a submission for the document.] Chairman Leahy. Thanks. Our next witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's migration method team.




Divine served as Chief Counsel of the United States Citizenship and Immigration Services from July 2004 until November 2006, the year in which he was Acting Supervisor, and after that Performing Replacement Director. He has worked thoroughly with the EB-5 program secretive technique. He was elected, as I recognize, vice president of the Association to Purchase U.S.A., the national market organization of regional facilities.


Divine, we are pleased to have you here. Please go in advance, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE USA (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At a lot of, if all 10,000 slots were used, it would be 1 percent of the migration each year to the USA. It is not near that yet, but it is growing and obtaining towards that. Especially as USCIS, the firm that oversees the program, has actually been making the guidelines more clear and the processes a lot read more more reasonable and clear for individuals who are organizing investments and for the capitalists that are investing, even more people have actually agreed and able to put initiative and money right into the procedure to find great jobs and create them, and afterwards extra financiers have wanted to spend their money and take the risk and use the money to develop the tasks that is the point of the program.

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These jobs do not wait around permanently, and USCIS comprehends that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That does not suggest that they are unwinding their analysis, and, as a matter of fact, they prepare to deny applications that are not certifying. And they do so, as was pointed out


The local facility component of the program is not. It becomes part of an appropriations expense that was passed in 1992, and because then that program has 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 process takes a good while to develop a project and afterwards to obtain the financiers accepted. And they do not desire their cash streaming with up until they have been authorized. And the specter of the expiry of this Regional Center Program in September is already preventing the development of jobs.

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I would such as to make clear that the Regional Facility Program is not the exact same as the half-million-dollar point. The idea of half a million or a million is a feature of the regular EB-5 regulation that is part of the code. It just is a reality that many of the local centers that are merging investments have actually established those in areas of high joblessness or in rural locations where fifty percent- million-dollar investments are enabled, which makes feeling.