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The program is put in a really weird and non-helpful governmental place for the stimulation of worldwide investment in the United States. We are giving away as well much for too tiny of a financial investment.


The regional facilities, with their half-million schemes, basically damaged the a lot more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they carry out in Australia, should be regarding producing company entities, not passive financial investments. It should have to do with producing genuine jobs, not clarify calculations concerning the indirect development of tasks, which is currently part of the regulation.


Perhaps that is among the reasons it has failed time after time to reach the legislative goal of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is as well loaded with middlemen, both public and private. The program has greater than its share of detractions, which I will certainly enter later if anybody is interested.


This is an agency that loves to claim yes to candidates, yet as the table in my testimony reveals, USCIS policemans have a lot more trouble with EB-5 applications than others. I believe that is something that no one has truly spoken around a lot. EB5 Regional Center Program. There are high prices of interior rejections in this program and forever reason

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Seventh, in this program visas go to people that could not get them differently and to people whose planned financial investment is actually less, according to the Federal Reserve, than the typical mean total assets of all American households in 2007. Allow me broaden on among my observations.


My quote based on the capitalists' environment-friendly card applications filed 2 years after the very first 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 offer the kind of information that we can utilize on this.


For every $100 of boosted foreign investment that year, the EB program added one dime. Under a far more wobbly analytical base, the initial applications of would-be immigrant financiers, USCIS is telling journalists that the level of financial investment in the just-concluded year had to do with $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 concerns. [The prepared declaration of David North looks like an entry for the record.] Chairman Leahy. Thank you. 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 migration method group.




Divine served as Chief Advise of the United States Citizenship and Migration Services from July 2004 up until November 2006, the year in which he was Acting Supervisor, and then Performing Deputy Supervisor. He has worked thoroughly with the EB-5 program in private method. He was chosen, as I understand, vice president of the Organization to Buy U.S.A., the national market organization of local facilities.


Divine, we are delighted to have you right here. Please go ahead, 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 United States website (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At the majority of, if all 10,000 ports were used, it would be 1 percent of the migration each year to the United States. It is not near that yet, but it is growing and getting towards that. Specifically as USCIS, the firm that manages the program, has actually been making the rules clearer and the procedures extra logical and clear for individuals that are arranging investments and for the capitalists who are investing, even more individuals have actually wanted and able to place initiative and cash into the process to locate good projects and develop them, and afterwards extra capitalists have actually wanted to spend their cash and take the danger and utilize the cash to produce the tasks that is the factor of the program.

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These tasks do not wait about forever, and USCIS understands that and are trying to speed up the program, speed the procedure - EB5 Regional Center Program. That does not imply that they are unwinding their scrutiny, and, as a matter of fact, they prepare to refute applications that are not qualifying. And they do so, as was discussed


The local facility part of the program is not. It belongs to an appropriations bill that was passed in 1992, and since then that program has been prolonged 5 times for 19 years. It is time for it to be irreversible, and it needs to be done now and not nearer to the day of expiration in September.


The process takes an excellent while to work up a project and after that to obtain the investors approved. And they do not want their cash flowing via until they have actually been authorized. And the specter of the expiry of this Regional Center Program in September is already inhibiting the growth of tasks.

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I would love to clarify that the Regional Center 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 law that belongs to the code. It just is a reality that the majority of the local centers that are pooling investments have actually set those instead of high unemployment or in rural locations where half- million-dollar investments are permitted, and that makes sense.