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The program is put in a really odd and non-helpful administrative area for the stimulation of worldwide investment in the United States. We are offering away also much for too small of an investment.


The regional centers, with their half-million systems, basically undercut the more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, ought to have to do with developing organization entities, not easy investments. It needs to be about developing genuine jobs, not elaborate calculations about the indirect production of tasks, which is now part of the legislation.


Maybe that is just one of the factors why it has actually stopped working every year to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is too loaded with intermediaries, both public and private. The program has even more than its share of rumors, which I will certainly enter later on if anybody is interested.


This is a firm that likes to claim yes to applicants, but as the table in my statement reveals, USCIS policemans have a lot extra trouble with EB-5 applications than others. I believe that is something that no one has really spoken around much. EB5 Regional Center Program. There are high prices of interior rejections in this program and permanently factor

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Seventh, in this program visas most likely to individuals that can not obtain them any type of various other means and to people whose planned financial investment is actually less, according to the Federal Reserve, than the typical mean web well worth of all American families in 2007. Let me expand on one of my monitorings.


My price quote based on the financiers' environment-friendly card applications filed 2 years after the very first investment-- these are the solid ones that continue to be and are accepted. This is 2009-- was that they had concerning $191 million validated-- that is my quote. USCIS does not offer the type of data that we could use on this.


So for each $100 of boosted foreign investment that year, the EB program contributed one penny. Under a far more unsteady analytical base, the initial applications of potential immigrant capitalists, USCIS is informing journalists that the level of financial investment in the just-concluded year was regarding $1.2 billion. Let us approve that.

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Thank you for paying attention to me. I eagerly anticipate your remarks and questions. [The prepared statement of David North appears as a submission for the record.] Chairman Leahy. Thanks. Our next witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's immigration practice group.




Divine served as Principal Counsel of the United States Citizenship and Immigration Providers from July 2004 until November 2006, the year in which he was Performing Supervisor, and after that Performing Deputy Supervisor. He has actually functioned extensively with the EB-5 program in private technique. He was chosen, as I recognize, vice head of state of the Organization to Invest in United States, the national sector organization of regional centers.


Divine, we are thrilled to have you here. Please proceed, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, PURCHASE 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 utilized, it would be 1 percent of the migration each year to the USA. It is not near that yet, however it is growing and obtaining toward that. Especially as USCIS, the agency that looks after the program, has been making the regulations clearer and the procedures more logical and clear for individuals who are organizing financial investments and for the capitalists who are investing, more individuals have actually been willing and able to place effort and cash into the procedure to discover excellent tasks and develop them, and after that much more financiers have agreed to invest their money and take the risk and use the cash to create the work that is the factor of the program.

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These tasks do not wait around forever, and USCIS understands that and are trying to speed up the program, speed the process - EB5 Regional Center Program. That does not indicate that they are relaxing their analysis, and, as a matter of fact, they are prepared to refute applications that are not certifying. And this hyperlink they do so, as was pointed out


The regional center component of the program is not. It is component of an appropriations expense that was passed in 1992, and since then that browse around here program has actually been expanded 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 process takes a good while to develop a project and after that to obtain the capitalists accepted. And they do not want their money flowing with until they have been accepted. And the specter of the expiry of this Regional Center Program in September is already discouraging the growth of jobs.

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I want to clear up that the Regional Facility Program is not the like the half-million-dollar thing. The idea of half a million or a million is a function of the routine EB-5 law that belongs to the code. It more simply is a fact that the majority of the local facilities that are merging investments have set those instead of high unemployment or in backwoods where fifty percent- million-dollar financial investments are permitted, which makes feeling.