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The program is placed in a really odd and non-helpful bureaucratic place for the stimulation of international investment in the United States. We are giving away also much for too small of a financial investment.


The regional facilities, with their half-million systems, basically undercut the more practical million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they perform in Australia, must have to do with developing business entities, not easy financial investments. It should have to do with creating genuine tasks, not clarify computations concerning the indirect creation of work, which is currently component of the regulations.


Probably that is just one of the factors why it has actually fallen short time after time to reach the legislative objective of 10,000 investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is also filled up with middlemen, both public and personal. The program has more than its share of rumors, which I will certainly enter later if anyone is interested.


This is an agency that loves to say yes to applicants, yet as the table in my statement shows, USCIS policemans have much extra problem with EB-5 applications than others. I think that is something that no one has actually discussed a lot. EB5 Regional Center Program. There are high prices of internal rejections in this program and for excellent 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 actually much less, according to the Federal Reserve, than the ordinary mean total assets of all American families in 2007. Let me increase on among my observations.


My quote based upon the capitalists' eco-friendly card 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 regarding $191 million validated-- that is my estimate. USCIS does not offer the kind of information that we can make use of on this.


For every $100 of enhanced foreign financial investment that year, the EB program added one cent. Under a a lot more unsteady analytical base, the preliminary applications of potential immigrant financiers, USCIS is telling journalists that the degree of financial investment in the just-concluded year was about $1.2 billion. Let us accept that.

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Thanks for listening to me. I anticipate your remarks and questions. [The ready declaration of David North looks like a submission for the document.] Chairman Leahy. Thanks. Our following 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 group.




Divine worked as Principal Advise of the USA Citizenship and Immigration Services from July 2004 up until November 2006, the year in which he was Acting Supervisor, and then Acting Replacement Supervisor. He has actually functioned extensively with the EB-5 program in exclusive technique. He was chosen, as I understand, vice president of the Association to Spend in U.S.A., the national market organization of regional.


STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, 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 used, it would be 1 percent of the immigration each year to the United States. It is not near that yet, yet it is growing and getting towards that. Specifically as USCIS, the company that supervises the program, has been making the rules clearer and the procedures much more rational and clear for the people who are arranging financial investments and for the financiers who are investing, more people have actually agreed and able to put effort and money right into the process to discover great tasks and create them, and after that extra financiers have agreed to spend their cash and take the threat and use the cash to develop the work that is the point of the program.

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These projects do not wait about for life, and EB5 Regional Center Program USCIS recognizes that and are trying to speed up the program, speed up the process - EB5 Regional Center Program. That does not mean that they are unwinding their analysis, and, as a matter of fact, they prepare to reject applications that are not certifying. And they do so, as was discussed


The local facility component of the program is not. It becomes part of an appropriations bill that was established in 1992, and since then that program has been expanded 5 times for 19 years. It is time for it to be long-term, and it requires to be done now and not nearer to the date of expiry in September.


The procedure takes an excellent while to develop a job and after that to get the financiers accepted. And they do not desire their money streaming via up until they have been authorized. And the specter of the expiration of this Regional Center Program in September is currently preventing the development of jobs.

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I wish to make clear 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 regular EB-5 law that belongs to the code. It just is a truth that a lot of the local centers that are pooling financial investments have set those in locations of high joblessness or in rural locations where half- million-dollar financial investments are enabled, and that makes feeling.