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Initially, the program is put in a very strange and non-helpful administrative place for the excitement of international investment in the United States. Second, its scale is all wrong. We are distributing way too much for as well tiny of an investment. Additionally, elevating financial backing half a million dollars a tranche is, to claim the least, inefficient.


The regional centers, with their half-million schemes, essentially damaged the a lot more practical million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they perform in Australia, should be regarding producing organization entities, not passive investments. It needs to have to do with producing genuine jobs, not elaborate calculations regarding the indirect creation of jobs, which is currently component of the legislation.


Probably that is just one of the reasons it has actually stopped working time after time to reach the legal goal of 10,000 investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is as well filled up with intermediaries, both public and private. The program has more than its share of rumors, which I will obtain into later if any person is interested.


This is a firm that enjoys to state yes to candidates, yet as the table in my testimony reveals, USCIS police officers have a lot extra trouble with EB-5 applications than others. I assume that is something that nobody has actually truly spoken about a lot. EB5 Regional Center Program. There are high prices of internal rejections in this program and permanently factor

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Seventh, in this program visas go to individuals who could not obtain them otherwise and to individuals whose scheduled financial investment is in fact less, according to the Federal Get, than the ordinary mean total assets of all American families in 2007. Allow me expand on among my monitorings.


My price quote based upon the investors' environment-friendly card applications submitted 2 years after the first financial investment-- these are the strong ones that remain and are accepted. This is 2009-- was that they had regarding $191 million verified-- that is my estimate. USCIS does not provide the sort of data that we could use on this.


So for every $100 of increased foreign investment that year, the EB program contributed one penny. Under a far more shaky analytical base, the initial applications of prospective immigrant capitalists, USCIS is telling reporters that the degree of investment in the just-concluded year was regarding $1.2 billion. Let us accept that.

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Thank you for paying attention to me. I look forward to your comments and inquiries. [The prepared statement of David North shows up as a submission for the record.] Chairman Leahy. Thanks. 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 technique team.




Divine offered as Chief Guidance of the United States Citizenship and Immigration Services from July 2004 till November 2006, the year in which he was Acting Director, and afterwards Acting Deputy Supervisor. He has functioned extensively with the EB-5 program in private method. He was chosen, as I recognize, vice head of state of the Association to Invest in U.S.A., the nationwide industry organization of regional.


DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At a lot of, if all 10,000 ports were used, it would be 1 percent of the immigration annually to the USA. It is her response not near that yet, yet it is growing and getting toward that. Especially as USCIS, the agency that oversees the program, has actually been making the regulations more clear and the procedures much more sensible and clear for individuals that are arranging investments and for the financiers that are spending, more people have agreed and able to put initiative and money into the procedure to discover good jobs and develop them, and after that extra financiers have actually been willing to invest their cash and take the danger and use the money to develop the work that is the factor of the program.

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These projects do not linger permanently, and USCIS recognizes that and are trying to speed up the program, speed the process - EB5 Regional Center Program. That does not indicate that they are relaxing their examination, and, in fact, they prepare to refute 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 expense that was passed in 1992, and given that then that program has actually been expanded 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 day of expiration in September.


The process takes a great while to work up a job and after that to obtain the capitalists approved. And they do not want their money streaming through until they have actually been accepted. And the specter of the expiry of this Regional Facility Program in September is currently discouraging the development of jobs.

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I want to clear up that the Regional best site 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 routine EB-5 regulation that belongs to the code. It simply is a truth that a lot additional reading of the regional centers that are merging financial investments have set those in locations of high unemployment or in rural locations where half- million-dollar investments are allowed, which makes feeling.