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The program is put in an extremely strange and non-helpful administrative place for the excitement of worldwide financial investment in the United States. We are providing away also much for too tiny of an investment.


The regional centers, with their half-million plans, basically undercut the much more practical million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they perform in Australia, should be about creating organization entities, not easy investments. It needs to have to do with developing genuine tasks, not clarify estimations about the indirect development of work, which is now part of the legislation.


Perhaps that is one of the reasons it has stopped working every year to reach the legislative goal of 10,000 investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is also full of intermediaries, both public and exclusive. The program has more than its share of rumors, which I will certainly enter later if anybody is interested.


This is an agency that likes to say yes to applicants, yet as the table in my statement reveals, USCIS policemans have a lot more problem with EB-5 applications than others. I believe that is something that no one has actually really spoken about a lot. EB5 Regional Center Program. There are high prices of inner rejections in this program and permanently reason

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Seventh, in this program visas go to people who could not obtain them differently and to people whose organized financial investment is in fact much less, according to the Federal Get, than the average mean internet worth 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 investment-- these are the strong ones that continue to be and are authorized. This is 2009-- was that they had about $191 million validated-- that is my estimate. USCIS does not supply the type of data that we could make use of on this.


For every $100 of increased international financial investment that year, the EB program added one cent. Under a far more wobbly analytical base, the initial applications of prospective immigrant capitalists, USCIS is informing reporters 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 paying attention to me. I expect your remarks and concerns. [The prepared declaration of David North appears as a submission for the record.] 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 firm's immigration practice team.




Divine offered as Chief Advice of anchor the United States Citizenship and Immigration Solutions from July 2004 till November 2006, the year in which he was Acting Director, and after that Acting Deputy Director. He has Related Site worked extensively with the EB-5 program in private method. He was chosen, as I recognize, vice head of state of the Organization to Buy U.S.A., the nationwide industry association of local centers.


DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others.


At many, if all 10,000 ports were used, it would certainly be 1 percent of the migration yearly to the USA. It is not near that yet, but it is growing and getting towards that. Especially as USCIS, the company that oversees the program, has been making the guidelines more clear and the processes much more rational and clear for individuals that are arranging financial investments and for the investors who are investing, more individuals have actually been willing and able to place effort and cash right into the procedure to locate great jobs and establish them, and after that extra financiers have actually agreed to invest their cash and take the risk and utilize the cash to create the work that is the point of the program.

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These tasks do not wait about permanently, and USCIS comprehends that and are trying to speed the program, speed the process - EB5 Regional Center Program. That does not suggest that they are unwinding their scrutiny, and, in fact, they prepare to reject applications that are not qualifying. And they do so, as was stated


The regional facility component of the program is not. It becomes part of an appropriations site web costs that was established in 1992, and ever since that program has been expanded 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 an excellent while to develop a job and then to obtain the financiers accepted. And they do not want their cash moving through till they have been authorized. And the specter of the expiry of this Regional Facility Program in September is already preventing the development of jobs.

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I would like 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 function of the regular EB-5 legislation that becomes part of the code. It simply is a truth that the majority of the regional centers that are pooling financial investments have actually established those instead of high joblessness or in country areas where half- million-dollar investments are enabled, which makes good sense.