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The program is placed in a really weird and non-helpful administrative location for the excitement of global financial investment in the United States. Second, its range is all wrong. We are distributing way too much for also little of an investment. Better, increasing financial backing fifty percent a million dollars a tranche is, to state the least, ineffective.

The regional facilities, with their half-million systems, essentially undercut the more practical million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, ought to have to do with creating organization entities, not passive financial investments. It ought to have to do with developing genuine jobs, not elaborate estimations about the indirect development of jobs, which is now part of the legislation.


Perhaps that is one of the reasons that it has actually failed every year to reach the legislative goal of 10,000 investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is as well loaded with intermediaries, both public and private. The program has greater than its share of detractions, which I will certainly enter into later if any person is interested.


This is a company that likes to say yes to candidates, yet as the table in my testimony reveals, USCIS policemans have a lot a lot more trouble with EB-5 applications than others. I believe that is something that nobody has actually truly spoken about much. EB5 Regional Center Program. There are high rates of inner denials in this program and completely factor

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


My price quote based on the capitalists' permit applications filed 2 years after the initial investment-- these are the strong ones that remain and are accepted. This is 2009-- was that they had concerning $191 million verified-- that is my price quote. USCIS does not provide the type of information that we can use on this.


So for every single $100 of boosted international financial investment that year, the EB program contributed one cent. Under a a lot more shaky statistical base, the first applications of would-be immigrant financiers, USCIS is telling journalists that the level of investment in the just-concluded year was about $1.2 billion. Allow us accept that.

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Thanks for listening to me. I look onward to your remarks and concerns. [The prepared statement of David North looks like an entry 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 company's immigration technique team.

Divine acted as Chief Counsel of the United States Citizenship and Migration Services from July 2004 till November 2006, the year in which he was Acting Supervisor, and after that Performing Replacement Director. He has functioned thoroughly with the EB-5 program in private method. He was elected, as I recognize, vice head of state of the Association to Invest in United States, the national market association of local facilities.


Divine, we are happy to have you right here. Please go in advance, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, BUY THE United States (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At a lot of, if all 10,000 ports were used, it would certainly be 1 percent of the migration each year to the USA. It is not near that yet, but it is expanding and getting towards that. Especially as USCIS, the my sources firm that manages the program, has actually been making the policies more clear and the procedures more logical and clear for individuals who are organizing investments and for the capitalists that are investing, more individuals have actually agreed and able to place effort and money right into the process to locate good jobs and develop them, and after that more capitalists have actually been willing to spend their money and take the danger and utilize the money to create the work that is the factor of the program.

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These tasks do not linger for life, and USCIS comprehends that and are attempting to speed the program, speed the procedure - EB5 Regional Center Program. That does not mean that they are relaxing their scrutiny, and, actually, they prepare to reject applications that are not certifying. And they do so, as was pointed out

The regional center part of the program is not. It becomes part of an appropriations expense that was passed in 1992, and ever since 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 now and not nearer to the date of expiry in September.


The procedure takes a great while to develop a project and afterwards to get the capitalists authorized. And they do not desire their money streaming via until they have been authorized. And page the specter of the expiration of this Regional Facility Program in September is currently dissuading the her response development of projects.

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I wish 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 normal EB-5 law that belongs to the code. It simply is a reality that a lot of the local centers that are pooling financial investments have actually set those in places of high unemployment or in backwoods where fifty percent- million-dollar investments are allowed, and that makes feeling.