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The program is positioned in an extremely strange and non-helpful bureaucratic place for the excitement of international investment in the United States. We are offering away as well much for too tiny of an investment.


The local centers, with their half-million schemes, basically undercut the extra reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they perform in Australia, should have to do with producing company entities, not easy investments. It needs to be regarding producing actual jobs, not clarify calculations regarding the indirect production of jobs, which is now component of the legislation.


Probably that is among the reasons it has stopped working year after year to reach the legal objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is also full of middlemen, both public and exclusive. The program has greater than its share of scandals, which I will enter later on if any person is interested.


This is an agency that loves to state yes to applicants, however as the table in my statement shows, USCIS police officers have much more trouble with EB-5 applications than others. I believe that is something that nobody has actually truly discussed much. EB5 Regional Center Program. There are high rates of interior rejections in this program and for excellent factor

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Seventh, in this program visas go to individuals that can not obtain them differently and to individuals whose planned financial investment is actually less, according to the Federal Reserve, than the typical mean web worth of all American families in 2007. Allow me broaden on among my observations.


My price quote based upon the financiers' copyright applications filed 2 years after the first investment-- these are the solid ones that remain and are accepted. This is 2009-- was that they had regarding $191 million confirmed-- that is my quote. USCIS does not supply the kind of data that we might utilize on this.


So for each $100 of raised international investment that year, the EB program added one penny. Under a much more shaky analytical base, the first applications of would-be immigrant capitalists, USCIS is informing journalists that the degree of investment in the just-concluded year was about $1.2 billion. Let us accept that.

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Thanks for paying attention to me. I eagerly anticipate your comments and concerns. [The ready declaration of David North shows up as a submission for the record.] Chairman Leahy. Thanks. 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 migration method group.




Divine worked as Principal Advice of the USA Citizenship and Immigration Providers from July 2004 up until November 2006, the year in which he address was Acting Supervisor, and after that Acting Replacement Supervisor. He has worked extensively with the EB-5 program in private technique. He was elected, as I recognize, vice president of the Organization to Spend in U.S.A., the national sector organization of regional centers.


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


At many, if all 10,000 slots were made use of, it would be 1 percent of the migration each year to the United States. It is not near that yet, from this source however it is growing and getting toward that. Particularly as USCIS, the company that supervises the program, has been making the guidelines more clear and the procedures more rational and clear for the people who are arranging investments and for the capitalists who are investing, even more people have actually agreed and able to put initiative and money into the procedure to find excellent jobs and create them, and after that a lot more capitalists have wanted to invest their money and take the danger and use the cash to develop the jobs that is the factor of the program.

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These tasks do not wait around forever, and USCIS recognizes that and are attempting to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not indicate that they are unwinding their scrutiny, and, as a matter of fact, they are prepared to refute applications that are not certifying. And they do so, as was discussed


The local center component of the program is not. It belongs to an appropriations costs that was passed in 1992, and given that then that program has actually been prolonged 5 times for 19 years. It is time for it to be permanent, and it needs to be done currently and not nearer to the date of expiry in September.


The procedure takes an excellent while to function up a project and then to obtain the capitalists accepted. And they do not desire their money moving through up until they have actually been authorized. And the specter of the expiration of this Regional Facility Program in September is currently inhibiting the advancement of tasks.

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I want to make clear that the Regional Center Program is not the like the half-million-dollar point. The concept of half a million or a million is a feature of the regular EB-5 regulation that becomes part of the code. It simply is a reality that a lot of the local centers that visit here are merging financial investments have established those instead of high joblessness or in country areas where half- million-dollar financial investments are permitted, and that makes feeling.