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The program is placed in an extremely strange and non-helpful governmental location for the excitement of international investment in the United States. We are offering away also much for too tiny of an investment.


The local centers, with their half-million systems, essentially damaged the much more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, should be concerning creating organization entities, not passive financial investments. It ought to have to do with producing actual work, not elaborate estimations about the indirect production of jobs, which is currently part of the regulations.


Probably that is among the reasons that it has failed every year to get to the legislative objective of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is also loaded with middlemen, both public and private. The program has even more than its share of rumors, which I will enter later on if anyone is interested.


This is an agency that loves to state yes to candidates, but as the table in my statement reveals, USCIS officers have far more problem with EB-5 applications than others. I think that is something that nobody has actually chatted about a lot. EB5 Regional Center Program. There are high prices of interior rejections in this program and permanently reason

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Seventh, in this program visas go to people that could not obtain them otherwise and to individuals whose organized investment is really less, according to the Federal Reserve, than the average mean total assets of all American households in 2007. Let me expand on one of my monitorings.


My price quote based upon the financiers' permit applications filed 2 years after the first investment-- these are the solid ones that stay and are authorized. This is 2009-- was that they had about $191 million confirmed-- that is my price quote. USCIS does not supply the kind of information that we might use on this.


For every $100 of increased international financial investment that year, the EB program added one cent. Under a far more unsteady analytical base, the first applications of would-be immigrant capitalists, USCIS is informing journalists that the level of investment in the just-concluded year was about $1.2 billion. Allow 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 looks like an entry for the document.] Chairman Leahy. Thanks. Our following witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's immigration technique group.




Divine functioned as Principal Advice of the United States Citizenship and Migration Services from July 2004 till November 2006, the year in which he was Acting Supervisor, and after that Acting Replacement Director. He has actually functioned extensively with the EB-5 program in private technique. He was chosen, as I comprehend, vice president of the Organization to Purchase USA, the nationwide industry association of local centers.


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


At most, if Read Full Article all 10,000 ports were utilized, it would certainly be 1 percent of the immigration each year to the United States. It is not near that yet, yet it is expanding and obtaining toward that. Specifically as USCIS, the agency that manages the program, has been making the policies more clear and the procedures much more rational and clear for individuals that are arranging financial investments and for the capitalists who are spending, even more individuals have agreed and able to place initiative and money into the process to discover excellent tasks and develop them, and after that much more financiers have actually wanted to spend their cash and take the risk and make use of the cash to develop the work that is the factor of the program.

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These projects do not wait around forever, and USCIS understands that and are attempting to speed the program, speed the procedure - EB5 Regional Center Program. That does not indicate that they are relaxing their analysis, and, as a matter of fact, they prepare to reject applications that are not qualifying. And they do so, as was mentioned


The regional center part of the program is not. It becomes part of an appropriations expense that was enacted in 1992, and considering that then that program has been expanded five times for 19 years. It is time for it to be long-term, and it needs to be done now and not nearer to the day of expiration in September.


The process takes a great while to develop a project and after that to obtain the investors accepted. And they do not want their cash flowing with till they have actually been accepted. And the specter of the expiration of this Regional review Facility Program in September is already discouraging the growth of jobs.

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I wish to make clear 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 regular EB-5 regulation that belongs to the code. It simply is a reality that a lot of the regional facilities that are pooling investments have actually established those instead of high unemployment original site or in rural locations where fifty percent- million-dollar financial investments are permitted, which makes good sense.