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The program is placed in a very strange and non-helpful bureaucratic location for the excitement of global financial investment in the United States. We are giving away also much for also tiny of a financial investment.


The local facilities, with their half-million systems, essentially damaged the much more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they do in Australia, ought to be regarding producing service entities, not passive investments. It ought to be regarding producing actual jobs, not clarify computations concerning the indirect creation of jobs, which is currently component of the regulation.


Possibly that is one of the factors why it has actually stopped working year after year to reach the legislative goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is also loaded with intermediaries, both public and personal. The program has more than its share of rumors, which I will certainly get involved in later if anyone is interested.


This is a company that enjoys to say yes to applicants, however as the table in my statement shows, USCIS police officers have far more difficulty with EB-5 applications than others. I believe that is something that nobody has truly spoken about much. EB5 Regional Center Program. There are high rates of inner rejections in this program and completely reason

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Seventh, in this program visas most likely to people who can not get them otherwise and to people whose planned financial investment is really less, according to the Federal Reserve, than the ordinary mean web worth of all American family members in 2007. Let me increase on one of my observations.


My price quote based upon the investors' copyright applications filed 2 years after the initial financial investment-- these are the strong ones that remain and are accepted. This is 2009-- was that they had regarding $191 million validated-- that is my quote. USCIS does not supply the sort of data that we can use on this.


So for each $100 of boosted international investment that year, the EB program contributed one cent. Under a a lot more unsteady analytical base, the initial applications of prospective immigrant investors, 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 remarks and questions. [The prepared statement of David North looks like a submission for the record.] Chairman Leahy. Thank you. Our next witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's immigration method group.




Divine functioned as Chief Advice of the USA Citizenship and Migration Services click from July 2004 up until November 2006, the year in which he was Performing Director, and after that Acting Deputy Director. He has actually functioned thoroughly with the EB-5 program in personal technique. He was chosen, as I recognize, vice president of the Association to Spend in USA, the nationwide sector association of regional.


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


At most, if all 10,000 slots were used, it would be 1 percent of the immigration every year to the United States. It is not near that yet, however it is expanding and obtaining towards that. Specifically as USCIS, the agency that supervises the program, has actually been making the rules clearer and the procedures extra reasonable and clear for individuals that are arranging financial investments and for the capitalists that are investing, more individuals have actually agreed and able to put initiative and money right into the process to find excellent tasks and establish them, and after that extra financiers have been willing to spend their money and take the risk and utilize the cash to develop the work that is the point of the program.

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These jobs do not linger for life, and USCIS comprehends that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That does not indicate see it here that they are relaxing their analysis, and, in truth, they are all set to reject applications that are not certifying. And they do so, as was pointed out


The local facility part of the program is not. It belongs to an appropriations bill that was enacted in 1992, and ever since that program has actually been expanded five times for 19 years. It is time for it to be permanent, and it requires to be done currently and not nearer to the day of expiry in September.


The procedure takes an excellent while to develop a job and afterwards to get the capitalists accepted. And they do not desire their cash flowing through until they have actually been accepted. And the specter of the expiry of this Regional Facility Program in September is already dissuading the advancement of jobs.

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I would like to make clear that the Regional Center Program is not the like the half-million-dollar thing. The idea of half a million or a million is a feature of the regular EB-5 regulation that is part of the code. It simply is a reality that the majority of the read here regional centers that are merging financial investments have established those instead of high joblessness or in rural areas where fifty percent- million-dollar investments are allowed, which makes good sense.