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The program is put in a really strange and non-helpful administrative area for the excitement of international financial investment in the United States. We are giving away as well much for too small of a financial investment.


The regional facilities, with their half-million systems, essentially undercut the extra sensible million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they carry out in Australia, ought to have to do with producing business entities, not passive financial investments. It needs to have to do with developing genuine tasks, not clarify computations regarding the indirect creation of tasks, which is currently component of the regulation.


Probably that is among the reasons why it has stopped working year after year to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is naturally clumsy, 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 enter into later on if any person is interested.


This is a company that loves to say yes to candidates, yet as the table in my testimony shows, USCIS policemans have far more problem with EB-5 applications than others. I believe that is something that no one has actually really discussed much. EB5 Regional Center Program. There are high rates of inner denials in this program and completely reason

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Seventh, in this program visas most likely to people that can not get them otherwise and to people whose scheduled investment is in fact less, according to the Federal Reserve, than the typical mean net well worth of all American families in 2007. Allow me broaden on among my observations.


My estimate based upon the investors' permit applications submitted 2 years after the first financial investment-- these are the solid ones that continue to be and are approved. This is 2009-- was that they had regarding $191 million verified-- that is my price quote. USCIS does not give the type of data that we could use on this.


For every $100 of increased foreign investment that year, the EB program contributed one dime. Under a much more shaky statistical base, the preliminary applications of prospective immigrant investors, USCIS is telling journalists that the level of financial 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 look forward to your remarks and inquiries. [The prepared statement of David North looks like an entry for the document.] Chairman Leahy. Thank you. Our following witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's migration practice group.




Divine offered as Chief Advise of the United States Citizenship and Migration Providers from July 2004 till November 2006, the year in which he was Performing Supervisor, and afterwards Acting Replacement Director. He has functioned extensively with the EB-5 program secretive method. He was chosen, as I comprehend, vice president of the Organization to Spend in U.S.A., the national market association of regional.


Divine, we are thrilled to have you below. 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, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thanks for look at here having me.


At most, if all 10,000 slots were used, it would certainly be 1 percent of the immigration yearly to the United States. It is not near that yet, yet it is growing and obtaining toward that. Especially as USCIS, the agency that looks after the program, has been making the policies clearer and the processes extra reasonable and clear for the individuals who are arranging investments and for the capitalists who are spending, more people have actually agreed and able to put initiative and cash into the procedure to find great tasks and create them, and afterwards more capitalists have actually wanted to invest their money and take the danger and make use of the money to develop the work that is the factor of the program.

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These jobs do not linger permanently, and USCIS understands that and are attempting to speed the program, speed the process - EB5 Regional Center Program. That does not imply that they are unwinding their scrutiny, and, as a matter of fact, they prepare to deny applications that are not certifying. And click now they do so, as was discussed


The regional facility component of the program is not. It is component of an appropriations expense that was passed in 1992, and since then that program has actually been prolonged 5 times for 19 years. It is time for it to be irreversible, and it requires to be done now and not nearer to the day of expiration in September.


The procedure takes a good while to develop a job and afterwards to get the capitalists accepted. And they do not desire their cash moving via up until they have actually been accepted. And the specter of the expiration of this Regional Center Program in September is already discouraging the advancement of jobs.

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I wish to clear up that the Regional Facility Program is not the very same as the half-million-dollar thing. The idea of half a million or a million is a feature of the routine EB-5 legislation that becomes part of the code. It simply is a truth that a lot of the regional centers that are merging financial investments have actually established those instead of high unemployment or in country locations where fifty percent- million-dollar financial investments are find more info enabled, and that makes good sense.