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The program is put in an extremely weird and non-helpful bureaucratic area for the stimulation of international financial investment in the United States. We are giving away as well much for also small of a financial investment.


The local facilities, with their half-million schemes, basically damaged the a lot more practical million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, need to have to do with producing company entities, not easy financial investments. It needs to have to do with developing genuine work, not elaborate estimations about the indirect development of tasks, which is now part of the regulation.


Possibly that is among the reasons it has failed every year to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is also loaded with middlemen, both public and private. The program has greater than its share of scandals, which I will enter later if anyone is interested.


This is a firm that loves to claim yes to applicants, however as the table in my testimony reveals, USCIS officers have much a lot more problem with EB-5 applications than others. I think that is something that nobody has really spoken about much. EB5 Regional Center Program. There are high rates of internal denials in this program and forever factor

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Seventh, in this program visas most likely to individuals that can not get them otherwise and to individuals whose scheduled financial investment is actually much less, according to the Federal Reserve, than the average mean net worth of all American households in 2007. Let me increase on one of my monitorings.


My quote based upon the capitalists' copyright applications submitted 2 years after the initial investment-- these are the solid ones that stay and are accepted. This is 2009-- was that they had about $191 million confirmed-- that is my quote. USCIS does not offer the sort of information that we might utilize on this.


For every $100 of increased international investment that year, the EB program contributed one penny. Under a far more wobbly analytical base, the initial applications of potential immigrant capitalists, USCIS is telling journalists that the degree of investment in the just-concluded year was concerning $1.2 billion. Allow us approve that.

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Thanks for paying attention to me. I look forward to your remarks and questions. [The ready statement of David North appears as a submission for the record.] Chairman Leahy. Thanks. Our next witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's immigration practice group.




Divine served as Principal Advise of the United States Citizenship and Immigration Providers from July 2004 until November 2006, the year in which he was Acting Director, and afterwards Acting Replacement Director. He has actually functioned extensively with the EB-5 program in private technique. He was chosen, as I comprehend, vice head of state of the Association to Invest in United States, the nationwide sector association of regional.


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, Senator Grassley, and others.


At most, if all 10,000 slots were made use of, it would certainly be 1 percent of the migration every year to the USA. It is not near that yet, but it is growing and obtaining towards that. Particularly as USCIS, the agency that manages the program, has actually been making the rules clearer and the processes more rational and clear for the people that are arranging investments and for the financiers who are investing, even more people have actually agreed and able to website place effort and money right into the process to locate good projects and create them, and after that more investors have agreed to invest their cash and take the threat and utilize the money to develop the jobs that is the point of the program.

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These jobs do not wait about for life, and USCIS understands that and are attempting to speed the program, speed the process - EB5 Regional Center Program. That does not suggest that they are relaxing their analysis, and, in truth, they are prepared to reject applications that are not certifying. 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 given that then that program has actually been extended 5 times for 19 years. It is time for it to be long-term, and it needs to be done currently and not nearer to the date of expiration in September.


The process takes a good while to work up a project and then to obtain the financiers accepted. And they do not desire their cash moving through till they have been approved. And the specter of the expiration of this Regional Facility Program in September is currently dissuading the growth of tasks.

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I wish to clarify that the Regional Facility Program is not the like the half-million-dollar point. The idea of half a million or a million is a function of the routine EB-5 regulation that is part of the code. It simply is a fact that a lot of the local facilities that are merging financial investments have actually established those in places of high joblessness or in backwoods where half- million-dollar investments are enabled, and that makes good sense.