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The program is positioned in a very odd and non-helpful governmental place for the stimulation of global financial investment in the United States. We are offering away also much for also little of a financial investment.


The local facilities, with their half-million plans, basically undercut the more 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 have to do with producing service entities, not passive financial investments. It needs to have to do with producing genuine jobs, not specify computations regarding the indirect production of work, which is now part of the legislation.


Perhaps that is among the reasons that it has actually failed time after time to reach the legislative objective of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is also loaded with middlemen, both public and private. The program has greater than its share of detractions, which I will obtain into later if anybody is interested.


This is an agency that loves to state yes to applicants, however as the table in my statement shows, USCIS policemans have far more problem with EB-5 applications than others. I think that is something that nobody has really spoken about much. EB5 Regional Center Program. There are high prices of inner denials in this program and forever reason

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Seventh, in this program visas go to people who could not obtain them any type of other method and to individuals whose scheduled financial investment is really much less, according to the Federal Book, than the ordinary mean total assets of all American family members in 2007. Let me broaden on one of my monitorings.


My price quote based on the capitalists' eco-friendly card applications filed 2 years after the initial financial investment-- these are the strong ones that remain and are authorized. This is 2009-- was that they had about $191 million confirmed-- that is my quote. USCIS does not provide the kind of information that we could make use of on this.


So for every single $100 of raised foreign financial investment that year, the EB program contributed one cent. Under a far more unsteady analytical base, the preliminary applications of would-be 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 approve that.

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Thanks for listening to me. I anticipate your remarks and questions. [The prepared statement of David North looks like 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 company's migration method group.




Divine functioned as Principal Advise of the USA 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 functioned extensively with the EB-5 program in private practice. He was chosen, as I recognize, vice head directory of state of the Association to Invest in USA, the nationwide industry association of local centers.


STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, 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 utilized, it would certainly be 1 percent of the immigration yearly to the USA. It is not near that yet, but it is growing and getting toward that. Specifically as USCIS, the agency that looks after the program, has been making the policies more clear and the procedures a lot more rational and clear for individuals who are organizing financial investments and for the capitalists that are investing, more people have been prepared and able to put effort and money right into the procedure to discover excellent tasks and create them, and after that extra capitalists have actually wanted to spend their cash and take the threat and make use of the cash to create the jobs that is the point of the program.

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These jobs do not linger forever, and USCIS understands that and are attempting to speed the program, speed the procedure - EB5 Regional Center Program. That does not indicate that they are relaxing their analysis, and, as a matter of fact, they are ready to reject applications that are not qualifying. And they do so, as was mentioned


The regional center component of the program is not. It is component of an appropriations bill that was enacted 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 currently and not nearer to the date of expiration in September.


The process takes a great while to develop a task and after that to get the financiers accepted. And they do not want their money flowing through up until they have been authorized. And the specter of the expiry of this Regional Center Program in September Get More Info is already preventing the growth of tasks.

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I want to clarify that the Regional Facility Program is not the like check that the half-million-dollar point. 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 reality that a lot of the local facilities that are pooling investments have actually set those instead of high joblessness or in backwoods where half- million-dollar investments are permitted, and that makes sense.