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The program is placed in an extremely strange and non-helpful governmental area for the stimulation of worldwide financial investment in the United States. We are offering away too much for also tiny of an investment.


The local centers, with their half-million schemes, essentially damaged the much more practical million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they perform in Australia, ought to have to do with producing business entities, not easy investments. It ought to have to do with producing actual jobs, not specify estimations about the indirect production of work, which is currently part of the legislation.


Probably that is just one of the reasons it has actually failed year after year to get to the legal goal of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is too loaded with intermediaries, both public and private. The program has even more than its share of scandals, which I will certainly enter into later if anybody is interested.


This is a company that likes to state yes to candidates, but as the table in my testimony shows, USCIS police officers have a lot more trouble with EB-5 applications than others. I assume that is something that no one has actually actually spoken about a lot. EB5 Regional Center Program. There are high rates of inner rejections in this program and completely factor

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Seventh, in this program visas most likely to individuals who can not obtain them otherwise and to individuals whose organized investment is really much less, according to the Federal Reserve, than the ordinary mean web worth of all American families in 2007. Allow me expand on among my observations.


My price quote based on the capitalists' permit applications submitted 2 years after the initial investment-- these are the strong ones that remain and are accepted. This is 2009-- was that they had about $191 million validated-- that is my estimate. USCIS does not provide the sort of data that we might use on this.


For every $100 of increased international financial investment that year, the EB program added one penny. Under a a lot more shaky statistical base, the initial applications of prospective immigrant capitalists, USCIS is telling journalists that the level of investment in the just-concluded year had to do with $1.2 billion. Let us accept that.

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Thanks for paying attention to me. I anticipate your remarks and inquiries. [The prepared statement of David North appears as an entry for the record.] 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 immigration method group.




Divine functioned as Principal Advise of the United States Citizenship and Immigration Providers from July 2004 up until November 2006, the year in which he was Acting Director, and afterwards Acting Replacement Director. He has actually functioned thoroughly with the EB-5 program secretive technique. He was chosen, as I comprehend, vice president of the Association to Invest in U.S.A., the nationwide market association of local.


STATEMENT OF ROBERT C. DIVINE, LAWYER, 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, Legislator Grassley, and others.


At many, if all 10,000 slots were made use of, 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 oversees the program, has actually been making the policies more clear and the processes a lot more logical and clear for the people who are organizing financial investments and for the capitalists who are investing, more people have agreed and able to place effort and cash right into the procedure to locate good tasks and create them, and after that a lot more investors have been ready to spend their money and take the danger and utilize the cash to create the work that is the point of the program.

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These jobs do not linger for life, and USCIS recognizes that and are attempting to speed up the program, speed the process - EB5 Regional Center Program. That does not indicate that they are relaxing their analysis, and, in reality, they are prepared to refute applications that are not qualifying. And they do so, as was discussed


The local facility component of the program is not. It belongs to an appropriations costs that was passed in 1992, and considering that then that program has been extended five times for 19 years. It is time for it to be irreversible, and it needs to be done currently and not nearer to the date of expiry in September.


The procedure takes a great while to function up a job and after that to get the investors authorized. And they do not desire their money moving through until they have actually been authorized. And the specter of the expiry of this Regional Facility Program in September is already discouraging the advancement of tasks.

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I wish to clarify that the Regional Center Program is not the like the half-million-dollar point. The concept of half a million or a check here million is a feature of the normal EB-5 law that belongs to the code. It just is a fact that a lot of the local centers that are pooling financial investments have set those in areas of high joblessness or in backwoods where half- million-dollar financial investments are enabled, and that makes feeling.