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The program is placed in an extremely strange and non-helpful governmental location for the stimulation of international investment in the United States. We are providing away as well much for also tiny of a financial investment.


The local centers, with their half-million schemes, basically undercut the much more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they perform in Australia, need to be regarding creating service entities, not passive financial investments. It ought to have to do with producing actual tasks, not elaborate calculations regarding the indirect creation of work, which is now part of the regulation.


Perhaps that is one of the reasons it has fallen short time after time to get to the legal goal of 10,000 investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is as well filled with middlemen, both public and exclusive. The program has more than its share of detractions, which I will certainly enter into later if anyone is interested.


This is a firm that enjoys to say yes to candidates, yet as the table in my testament shows, USCIS police officers have much a lot more difficulty with EB-5 applications than others. I think that is something that nobody has actually actually spoken about a lot. EB5 Regional Center Program. There are high prices of internal denials in this program and permanently reason

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Seventh, in this program visas go to people who could not get them any type of other method and to people whose planned investment is actually less, according to the Federal Reserve, than the average mean net well worth of all American families in 2007. Let me expand on among my monitorings.


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


So for every $100 of raised international financial investment that year, the EB program contributed one penny. Under a much more wobbly analytical base, the preliminary applications of prospective immigrant capitalists, USCIS is telling 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 eagerly anticipate your comments and concerns. [The ready declaration of David North shows up as an entry for the EB5 Regional Center Program record.] Chairman Leahy. Thank you. Our next witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's immigration technique team.




Divine acted as Chief Advice of the United States Citizenship and Migration Services 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 secretive practice. He was chosen, as I comprehend, vice president of the Organization to Buy USA, the nationwide sector organization of regional facilities.


STATEMENT OF ROBERT C. DIVINE, LAWYER, 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, Legislator Grassley, and others.


At many, if all 10,000 slots were utilized, it would certainly be 1 percent of the migration yearly to the USA. It is not near that yet, but it is expanding and getting towards that. Specifically as USCIS, the company that supervises the program, has been making the policies more clear and the processes a lot more reasonable and clear for individuals that are arranging investments and for the financiers who are spending, more individuals have actually been ready and able to place effort and money right into the procedure to locate great tasks and develop them, and after that a lot more financiers have actually agreed to invest their money and take the threat and use the cash to develop the work that is the point of the program.

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These tasks do not linger for life, and USCIS recognizes that and are attempting to speed the program, speed the process - EB5 Regional Center Program. That does not mean that they are relaxing their scrutiny, and, as a matter of fact, they are prepared to deny applications that are not qualifying. And they do so, as was pointed out


The local center part of the program is not. It is component of an appropriations costs that was passed in 1992, and given that then that program has actually been extended 5 times for 19 years. It is time for it to be permanent, and it requires to be done now and not nearer to the day of expiration in September.


The procedure takes an excellent while to develop a project and after that to obtain the financiers approved. And they do not desire their cash flowing via until they have actually been approved. And the specter of the expiration of this Regional Facility Program in September is already dissuading the development of jobs.

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I would certainly such as to make clear that the Regional Center Program is not the very same as the half-million-dollar point. The idea of half a million or a million is a function of the routine EB-5 legislation that becomes part of the code. It simply is a fact that many of the local facilities that are pooling investments have actually set those in locations of high joblessness or in country locations where fifty percent- million-dollar investments are enabled, and that makes good sense.