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The program is placed in an extremely odd and non-helpful bureaucratic location for the stimulation of global investment in the United States. We are giving away also much for too tiny of an investment.


The regional facilities, with their half-million schemes, essentially undercut the much more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they perform in Australia, should have to do with producing organization entities, not passive financial investments. It must be concerning developing actual tasks, not elaborate computations about the indirect creation of tasks, which is currently part of the regulation.


Perhaps that is just one of the factors why it has actually stopped working every year to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is too full of intermediaries, both public and exclusive. The program has greater than its share of detractions, which I will certainly get involved in later if anybody is interested.


This is a company that likes to state yes to applicants, however as the table in my statement reveals, USCIS policemans have far more difficulty with EB-5 applications than others. I believe that is something that nobody has actually truly spoken about a lot. EB5 Regional Center Program. There are high rates of inner denials in this program and for great reason

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Seventh, in this program visas go to individuals that might not obtain them otherwise and to people whose scheduled financial investment is in fact less, according to the Federal Reserve, than the average mean total assets of all American family members in 2007. Allow me broaden on one of my observations.


My quote based on the financiers' copyright applications submitted 2 years after the very first financial investment-- these are the solid ones that continue to be and are approved. This is 2009-- was that they had about $191 million confirmed-- that is my estimate. USCIS does not provide the kind of data that we could make use of on this.


For every $100 of increased foreign financial investment that year, the EB program contributed one cent. Under a a lot more wobbly analytical base, the initial applications of potential immigrant capitalists, USCIS is informing journalists that the degree of investment in the just-concluded year had to do with $1.2 billion. Let us approve that.

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Thank you for paying attention to me. I anticipate your comments and concerns. [The ready statement of David North shows up as an entry for the record.] Chairman Leahy. Thank you. 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 team.




Divine functioned as Chief Advise of the USA Citizenship and Migration Providers from July 2004 until November 2006, the year in which he was Performing Supervisor, and after that Performing Deputy Director. He has actually worked extensively with the EB-5 program in personal technique. He was elected, as I comprehend, vice president of the Organization to Purchase United States, the national market organization of Recommended Site regional facilities.


STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At a lot of, if all 10,000 ports 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 growing and obtaining towards that. Particularly as USCIS, the company that looks after the program, has actually been making the policies clearer and the procedures much more reasonable and clear for individuals that are arranging financial investments and for the capitalists who are investing, even more people have actually wanted and able to put initiative and cash into the process to find excellent projects and develop them, and after that extra capitalists have been prepared to invest their cash and take the danger and use the cash to develop the jobs that is the point of the program.

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These projects do not wait about for life, and USCIS understands that and are attempting to speed the program, speed the process - EB5 Regional Center Program. That does not imply that they are unwinding their analysis, and, as a matter of fact, they prepare to reject applications that are not certifying. And they do so, as was pointed out


The local facility component of the program is not. It is part of an appropriations bill that was index enacted in 1992, and considering that then that program has actually 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 date of expiration in September.


The process takes an excellent while to function up a job and then to get the financiers authorized. And they do not desire their money moving with up until they have been authorized. And the specter of the expiration of this Regional Facility Program in September is next already inhibiting the growth of projects.

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I want 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 function of the normal EB-5 regulation that belongs to the code. It simply is a reality that most of the regional centers that are merging financial investments have set those in locations of high joblessness or in backwoods where fifty percent- million-dollar financial investments are allowed, and that makes sense.