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The program is positioned in a really strange and non-helpful administrative place for the excitement of international financial investment in the United States. We are giving away too much for also tiny of an investment.


The local facilities, with their half-million plans, basically damaged the much more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they carry out in Australia, should have to do with creating business entities, not passive financial investments. It must have to do with producing actual tasks, not elaborate estimations concerning the indirect development of tasks, which is currently component of the regulation.


Possibly that is just one of the reasons it has failed time after time to get to the legal objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is also loaded with intermediaries, both public and personal. The program has even more than its share of scandals, which I will certainly enter into later if anyone is interested.


This is a company that loves to say yes to candidates, but as the table in my statement shows, USCIS officers have much more difficulty with EB-5 applications than others. I assume that is something that nobody has actually truly spoken about much. EB5 Regional Center Program. There are high rates of interior denials in this program and permanently factor

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Seventh, in this program visas go to individuals who can not get them differently and to people whose organized financial investment is actually much less, according to the Federal Reserve, than the average mean total assets of all American families in 2007. Allow me broaden on among my observations.


My estimate based on the financiers' permit applications submitted 2 years after the first investment-- these are the strong ones that remain and are approved. This is 2009-- was that they had concerning $191 million confirmed-- that is my price quote. USCIS does not offer the sort of data that we can use on this.


So for every $100 of increased international investment that year, the EB program added one dime. Under a a lot more wobbly analytical base, the preliminary applications of potential immigrant financiers, USCIS is telling journalists that the degree of investment in the just-concluded year was about $1.2 billion. Let published here us accept that.

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Thanks for listening to me. I expect your comments and concerns. [The prepared browse this site declaration of David North looks like an entry for the 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 company's migration technique group.




Divine worked as Principal Advise of the United States Citizenship and Immigration Solutions from July 2004 till November 2006, the year in which he was Performing Supervisor, and after that Performing Deputy Supervisor. He has worked extensively with the EB-5 program secretive practice. He was elected, as I understand, vice head of state of the Organization to Buy USA, the national industry organization of regional centers.


Divine, we are delighted to have you here. Please proceed, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, PURCHASE THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At a lot of, if all 10,000 slots were utilized, it would be 1 percent of the immigration annually to the United States. It is useful site not near that yet, yet it is growing and getting towards that. Specifically as USCIS, the firm that oversees the program, has actually been making the rules more clear and the processes much more logical and clear for the people who are organizing investments and for the capitalists that are spending, more individuals have actually agreed and able to put initiative and cash right into the process to locate excellent tasks and create them, and after that extra capitalists have agreed to spend their cash and take the danger and make use of the cash to produce the jobs that is the point of the program.

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These tasks do not wait around permanently, and USCIS understands that and are attempting to speed the program, speed the procedure - EB5 Regional Center Program. That does not indicate that they are relaxing their examination, and, in reality, they are all set to reject applications that are not certifying. And they do so, as was mentioned


The regional center part of the program is not. It belongs to an appropriations bill that was passed in 1992, and given that then that program has been prolonged five times for 19 years. It is time for it to be long-term, and it requires to be done currently and not nearer to the day of expiration in September.


The procedure takes a great while to develop a project and after that to get the investors approved. And they do not want their money flowing via up until they have actually been authorized. And the specter of the expiration of this Regional Facility Program in September is already preventing the advancement of tasks.

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I wish to clear up that the Regional Facility Program is not the exact same as the half-million-dollar point. The idea of half a million or a million is a function of the routine EB-5 law that becomes part of the code. It simply is a fact that a lot of the regional centers that are pooling investments have actually established those in locations of high unemployment or in backwoods where fifty percent- million-dollar financial investments are permitted, and that makes good sense.