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The program is placed in a really weird and non-helpful administrative location for the excitement of worldwide financial investment in the United States. We are offering away also much for too little of a financial investment.


The regional facilities, with their half-million systems, basically damaged the a lot more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they do in Australia, ought to have to do with developing business entities, not passive investments. It ought to have to do with producing genuine jobs, not clarify calculations regarding the indirect production of jobs, which is currently component of the legislation.


Possibly that is one of the reasons it has fallen short time after time to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is too loaded with middlemen, both public and private. The program has greater than its share of scandals, which I will certainly get involved in later on if anybody is interested.


This is a firm that likes to say yes to applicants, however as the table in my testimony reveals, USCIS policemans have a lot more difficulty with EB-5 applications than others. I assume that is something that no one has actually actually chatted around much. EB5 Regional Center Program. There are high prices of inner rejections in this program and completely factor

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Seventh, in this program visas most likely to individuals that can not obtain them differently and to people whose organized financial investment is in fact less, according to the Federal Get, than the average mean total assets of all American households in 2007. Allow me expand on one of my observations.


My quote based upon the financiers' environment-friendly card applications filed 2 years after the initial investment-- these are the strong ones that stay and are approved. This is 2009-- was that they had concerning $191 million validated-- that is my quote. USCIS does not offer the sort of data that we could utilize on this.


For every $100 of boosted foreign financial investment that year, the EB program added one cent. Under a a lot more wobbly analytical base, the preliminary 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. Let us approve that.

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Thank you for paying attention to me. I eagerly anticipate your remarks and questions. [The ready statement of David North looks like an entry 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 company's immigration technique group.




Divine functioned as Chief Advice of the United States Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Acting Supervisor, and then Performing Replacement Supervisor. He has actually functioned thoroughly with the EB-5 program in personal technique. He was chosen, as I recognize, vice head of state of the Organization to Spend in United States, the nationwide market association of regional.


Divine, we are happy to have you here. Please proceed, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, BUY THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At most, if all 10,000 slots were made use of, it would certainly be 1 percent of the immigration annually to the USA. It is not near that yet, yet it is expanding and getting toward that. Particularly as USCIS, the company that oversees the program, has actually been making the rules more clear and the processes a lot more logical and clear for the individuals that are organizing financial investments and for the capitalists who are spending, even more individuals have actually wanted and check these guys out able to put initiative and cash into the procedure to locate great jobs and create them, and after that extra investors have been prepared to spend their cash and take the threat and use the cash to develop the work that is the point of the program.

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These jobs do not linger permanently, and USCIS understands that and are attempting to speed up the program, speed the procedure - EB5 Regional Center Program. That does not imply that they are unwinding their scrutiny, and, in fact, they are all set to refute applications that are not certifying. And they do so, as was pointed out


The local center component of the program is not. It becomes part of an appropriations costs that was navigate to these guys passed in 1992, his response and since then that program has actually been extended 5 times for 19 years. It is time for it to be permanent, and it requires to be done currently and not nearer to the date of expiry in September.


The process takes an excellent while to work up a task and afterwards to obtain the financiers approved. And they do not desire their money flowing with up until they have actually been approved. And the specter of the expiry of this Regional Center Program in September is already discouraging the advancement of projects.

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I wish to clarify that the Regional Center Program is not the same as the half-million-dollar thing. The idea of half a million or a million is a function of the routine EB-5 legislation that becomes part of the code. It simply is a fact that many of the local facilities that are merging investments have set those instead of high unemployment or in backwoods where half- million-dollar investments are allowed, and that makes good sense.