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The program is put in an extremely strange and non-helpful bureaucratic place for the excitement of global investment in the United States. We are giving away too much for as well little of a financial investment.


The local centers, with their half-million schemes, essentially undercut the more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, need to be concerning creating organization entities, not easy investments. It needs to have to do with producing actual work, not clarify calculations about the indirect creation of work, which is currently part of the regulations.


Possibly that is just one of the reasons it has fallen short time after time to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is too filled up with middlemen, both public and personal. The program has greater than its share of detractions, which I will certainly get involved in later if anybody is interested.


This is a firm that likes to claim yes to candidates, however as the table in my testament reveals, USCIS officers have far more trouble with EB-5 applications than others. I believe that is something that no one has really discussed much. EB5 Regional Center Program. There are high prices of inner rejections in this program and for excellent reason

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Seventh, in this program visas go to people that can not obtain them differently and to people whose planned investment is really much less, according to the Federal Get, than the ordinary mean internet well worth of all American households in 2007. Let me expand on one of my monitorings.


My price quote based upon the capitalists' permit applications submitted 2 years after the very first financial investment-- these are the strong ones that stay and are accepted. This is 2009-- was that they had concerning $191 million validated-- that is my quote. USCIS does not offer the kind of information that we can use on this.


So for every single $100 of raised foreign financial investment that year, the EB program added one cent. Under a a lot more shaky statistical base, the first applications of potential immigrant capitalists, USCIS is telling journalists that the degree of financial investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thanks for listening to me. I anticipate your remarks and questions. [The ready declaration of David North appears as an entry for the record.] Chairman Leahy. Thanks. Our following witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He more info is the head of the company's immigration technique group.




Divine acted as Chief Guidance of the United States Citizenship and Migration Services from July 2004 up until November 2006, the year in which he was Acting Supervisor, and after that Performing Deputy Supervisor. He has worked thoroughly with the EB-5 program secretive method. He was elected, as I understand, vice president of the Association to Buy United States, 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, Senator Grassley, and others.


At a lot of, if all 10,000 slots were made use of, it would be 1 percent of the migration every year to the United States. It is not near that yet, yet it is growing and getting toward that. Especially as USCIS, the agency that looks after the program, has actually been making the policies clearer and the processes more reasonable and clear for the people that are arranging investments and for the financiers who are investing, even more individuals have actually wanted and able to place initiative and money right into the procedure to locate great tasks and establish them, and after that much more capitalists have wanted to invest their cash and take the danger and use the money to develop the jobs that is the point of the program.

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These projects do not wait around for life, and USCIS recognizes that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That does not mean that they are relaxing their scrutiny, and, in truth, they prepare to reject applications that are not qualifying. And they do so, as was mentioned


The local center component of the program is not. It becomes part of an appropriations costs that was enacted in 1992, and ever since that program has actually been prolonged five 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 work up a task and then to obtain the financiers approved. And they do not want their cash flowing through till they have been authorized. And the specter of the expiry of this Regional Facility Program in September is currently preventing the development of jobs.

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I want to clear up that the Regional Facility Program is not the like the half-million-dollar thing. The concept of half a million or a million is a feature of the normal EB-5 law that becomes part of the code. It simply is a fact that a lot of the regional centers that are merging financial investments have actually established those instead of high joblessness or in rural areas where half- million-dollar investments are allowed, and that makes good sense.