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The program is positioned in a very weird and non-helpful bureaucratic place for the stimulation of worldwide financial investment in the United States. We are giving away as well much for too small of an investment.


The regional facilities, with their half-million systems, basically damaged the a lot more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they do in Australia, should be regarding creating business entities, not easy financial investments. It ought to be concerning developing genuine jobs, not specify calculations about the indirect production of work, which is currently component of the legislation.


Probably that is just one of the reasons it has failed every year to reach the legislative objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is as well loaded with middlemen, both public and private. The program has greater than its share of scandals, which I will certainly enter into later on if anybody is interested.


This is an agency that likes to claim yes to candidates, however as the table in my statement shows, USCIS officers have a lot more difficulty with EB-5 applications than others. I think that is something that no one has actually discussed much. EB5 Regional Center Program. There are high rates of internal denials in this program and permanently factor

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Seventh, in this program visas most likely to people who can not obtain them otherwise and to people whose planned investment is really much less, according to the Federal Book, than the typical mean web worth of all American households in 2007. Let me broaden on one of my monitorings.


My estimate based on the investors' environment-friendly card applications submitted 2 years after the very first financial investment-- these are the solid ones that stay and are approved. This is 2009-- was that they had regarding $191 million confirmed-- that is my price quote. USCIS does not give the kind of information that we might utilize on this.


So for each $100 of raised foreign investment that year, the EB program contributed one penny. Under a far more wobbly statistical base, the first applications of would-be immigrant investors, USCIS is informing reporters that the degree of investment in the just-concluded year was regarding $1.2 billion. Let us approve that.

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Thank you for listening to me. I eagerly anticipate your remarks and questions. [The ready declaration next page of David North looks like a submission for the record.] Chairman Leahy. Thanks. 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 technique group.




Divine functioned as Principal Advise of the USA Citizenship and Immigration Solutions from July 2004 up until November 2006, the year in which he was Acting Director, and after that Acting Deputy Director. He has actually functioned thoroughly with the EB-5 program in personal method. He was elected, as I recognize, vice president of the Association to Purchase United States, the nationwide industry organization of local facilities.


Divine, we are happy to have you right here. Please go on, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At the majority of, if all 10,000 ports were made use of, it would certainly be 1 percent of the immigration each year to the USA. It is not near that yet, however it is expanding and obtaining towards that. Specifically as USCIS, the company that supervises the program, has been making the policies more clear and the procedures much more rational and clear for individuals that are organizing financial investments and for the capitalists that are spending, more individuals have actually wanted and able to put effort and money into the process check over here to find excellent tasks and create them, and afterwards much more capitalists have actually agreed to spend their cash and take the danger and make use of the cash to get more create the tasks that is the factor of the program.

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These projects do not wait about forever, and USCIS comprehends that and are attempting to speed up the program, speed the procedure - EB5 Regional Center Program. That does not imply that they are relaxing their scrutiny, and, as a matter of fact, they prepare to deny applications that are not qualifying. And they do so, as was discussed


The local facility part of the program is not. It belongs to an appropriations expense that was established in 1992, and considering that then that program has been prolonged 5 times for 19 years. It is time for it to be irreversible, and it needs to be done now and not nearer to the day of expiration in September.


The process takes a great while to function up a project and after that to obtain the financiers authorized. And they do not want their money flowing through up until they have been approved. And the specter of the expiry of this Regional Facility Program in September is currently preventing the advancement of projects.

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I want to clear up that the Regional Center Program is not the exact same as 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 simply is a truth that most of the regional facilities that are pooling financial investments have actually established those in locations of high joblessness or in country locations where half- million-dollar investments are permitted, and that makes good sense.