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The program is positioned in an extremely strange and non-helpful administrative location for the stimulation of worldwide investment in the United States. We are offering away as well much for as well tiny of an investment.


The local centers, with their half-million plans, basically damaged the a lot more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they carry out in Australia, should have to do with producing company entities, not easy financial investments. It should have to do with creating genuine work, not specify calculations concerning the indirect creation of tasks, which is now component of the regulation.


Possibly that is one of the reasons it has stopped working every year to reach the legislative objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is also full of middlemen, both public and exclusive. The program has even more than its share of scandals, which I will get involved in later if anyone is interested.


This is an agency that likes to state yes to candidates, but as the table in my testimony reveals, USCIS police officers have much a lot more difficulty with EB-5 applications than others. I think that is something that nobody has actually really spoken about much. EB5 Regional Center Program. There are high rates of interior rejections in this program and forever factor

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Seventh, in this program visas most likely to people that might not obtain them differently and to individuals whose planned financial investment is actually much less, according to the Federal Reserve, than the average mean total assets of all American households in 2007. Let me broaden on among my observations.


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


So for every $100 of raised international financial investment that year, the EB program contributed one cent. Under a a lot more unsteady statistical base, the initial applications of potential immigrant financiers, USCIS is telling reporters that the degree of investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thanks for listening to me. I eagerly anticipate your remarks and concerns. [The prepared statement of David North shows up as an entry 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 migration method group.




Divine worked as Principal Advice of the United States Citizenship and Migration Services from July 2004 up until November 2006, the year in which he was Performing Director, and after that Acting Deputy Supervisor. He has actually worked extensively with the EB-5 program secretive technique. He was elected, as I understand, vice head of state of the Organization to Buy United States, the national sector organization of navigate to these guys local facilities.


DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others.


At a lot of, if all 10,000 ports were used, it would be 1 percent of the immigration every year to the USA. It is not near that yet, but it is growing and obtaining toward that. Specifically as USCIS, see the agency that oversees the program, has been making the policies more clear and the procedures extra sensible and clear for the individuals who are arranging financial investments and for the financiers who are spending, even more people have actually wanted and able to place effort and money right into the procedure to find great projects and create them, and after that more capitalists have actually agreed to invest their cash and take the danger and use the money to produce the work that is the factor of the program.

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These jobs do not linger permanently, and USCIS recognizes that and are attempting to speed the program, speed the procedure - EB5 Regional Center Program. That does not mean that they are relaxing their analysis, and, actually, they prepare to reject applications that are not qualifying. And they do so, as was stated


The regional center part of the program is not. It becomes part of an appropriations expense that was established in 1992, and ever since that program has actually been prolonged 5 times for 19 years. It is time for it to be permanent, and it requires to be done now and not nearer to the date of expiry in September.


The process takes a good while to develop a job and afterwards to obtain the investors accepted. And they do not want their money sites streaming through until they have been authorized. And the specter of the expiry of this Regional Center Program in September is already preventing the advancement of jobs.

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I would such as to make clear that the Regional Center Program is not the like the half-million-dollar point. The idea of half a million or a million is a feature of the normal EB-5 regulation that is component of the code. It just is a reality that a lot of the local centers that are merging investments have actually established those in locations of high joblessness or in backwoods where half- million-dollar investments are allowed, which makes good sense.