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The program is placed in an extremely strange and non-helpful governmental area for the stimulation of global financial investment in the United States. We are offering away also much for too tiny of a financial investment.


The regional facilities, with their half-million plans, essentially undercut the much more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they perform in Australia, ought to be regarding developing organization entities, not passive investments. It needs to have to do with producing real work, not specify calculations regarding the indirect creation of work, which is now part of the legislation.


Perhaps that is one of the factors why it has actually failed every year to reach the legislative goal of 10,000 investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is as well full of intermediaries, both public and private. The program has even more than its share of rumors, which I will enter later on if anyone is interested.


This is a firm that enjoys to say yes to applicants, but as the table in my statement shows, USCIS officers have a lot a lot more problem with EB-5 applications than others. I think that is something that nobody has really discussed a lot. EB5 Regional Center Program. There are high rates of internal denials in this program and forever factor

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Seventh, in this program visas most likely to people who might not obtain them any other means and to individuals whose scheduled financial investment is actually much less, according to the Federal Get, than the ordinary mean net worth of all American households in 2007. Let me broaden on one of my observations.


My quote based on the financiers' permit applications submitted 2 years after the very first investment-- these are the strong ones that remain and are accepted. This is 2009-- was that they had regarding $191 million confirmed-- that is my price quote. USCIS does not provide the type of data that we could utilize on this.


For every $100 of raised international financial investment that year, the EB program contributed one penny. Under a much extra unsteady statistical base, the initial applications of would-be immigrant capitalists, USCIS is telling reporters that the degree of investment in the just-concluded year was concerning $1.2 billion. Let us accept that.

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Thanks for paying attention to me. I expect your remarks and concerns. [The ready declaration of David North looks like 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 immigration practice team.




Divine functioned as Chief Guidance of the USA Citizenship and Migration Providers from July 2004 till November 2006, the year in which he was Performing Director, and after that Performing Deputy Supervisor. He has actually worked thoroughly with the EB-5 program in personal technique. He was chosen, as I understand, vice president of the Association to Purchase USA, the nationwide sector organization of local centers.


Divine, we are happy to have you here. Please go on, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, PURCHASE THE United States (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At the majority of, if all 10,000 slots were utilized, it would certainly be 1 percent of the immigration each year to the United States. It is not near that yet, but it is expanding and obtaining towards that. Especially as USCIS, the company that looks after the use this link program, has been making the guidelines clearer and the processes a lot more reasonable and clear for individuals that are arranging financial investments and for the financiers that are investing, more people have agreed and able to place effort and money into the procedure to locate excellent projects and establish them, and afterwards extra investors have agreed to invest their cash and take the risk 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 understands that and are trying to speed the program, speed the process - EB5 Regional Center Program. That does not mean that they are relaxing their scrutiny, and, actually, they are ready to refute applications that are not qualifying. And they do so, as was discussed


The local center component of the program is not. It is part of an appropriations costs that was established in 1992, and ever you could try these out since that program has been prolonged 5 times for 19 years. It is time for it to be long-term, and it needs to be done now and not nearer to site here the date of expiry in September.


The process takes an excellent while to develop a job and afterwards to obtain the capitalists authorized. And they do not desire their money streaming through up until they have been authorized. And the specter of the expiry of this Regional Center Program in September is currently dissuading the development of tasks.

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I wish to make clear that the Regional Center Program is not the very same as the half-million-dollar point. The concept of half a million or a million is a feature of the routine EB-5 regulation that is part of the code. It just is a fact that the majority of the local centers that are merging financial investments have actually set those instead of high unemployment or in backwoods where fifty percent- million-dollar investments are enabled, which makes sense.