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The program is put in an extremely odd and non-helpful administrative place for the excitement of global financial investment in the United States. We are offering away also much for also tiny of a financial investment.

The regional facilities, with their half-million plans, essentially damaged the more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, ought to be about developing service entities, not passive financial investments. It ought to have to do with producing actual tasks, not elaborate computations about the indirect development of jobs, which is currently part of the regulations.


Perhaps that is among the reasons it has fallen short every year to reach the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is as well full of middlemen, both public and exclusive. The program has greater than its share of scandals, which I will enter into later if anybody is interested.


This is a firm that loves to claim yes to applicants, but as the table in my statement reveals, USCIS police officers have far more problem with EB-5 applications than others. I think that is something that no one has truly talked about a lot. EB5 Regional Center Program. There are high prices of inner denials in this program and forever reason

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Seventh, in this program visas go to people who can not obtain them differently and to individuals whose scheduled financial investment is in fact much less, according to the Federal Book, than the typical mean total assets of all American families in 2007. Allow me increase on among my monitorings.


My quote based on the investors' copyright applications filed 2 years after the initial financial investment-- these are the strong ones that stay and are approved. This is 2009-- was that they had about $191 million validated-- that is my price quote. USCIS does not supply the type of data that we can make use of on this.


For every $100 of increased international financial investment that year, the EB program contributed one dime. Under a far more wobbly analytical base, the initial applications of would-be immigrant investors, USCIS is telling reporters that the level of financial 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 comments and concerns. [The ready declaration of David North shows up as an entry for the record.] Chairman Leahy. Thank you. 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 migration practice group.

Divine acted as Chief Counsel of the USA Citizenship and Immigration Services from July 2004 till November 2006, the year in which he was Performing Director, and then Acting Replacement Director. He has actually worked thoroughly with the EB-5 program in private technique. He was elected, as I recognize, vice president of the Association to Spend in USA, the nationwide industry organization of regional.


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, Senator Grassley, and others.


At most, if all 10,000 ports were made use of, it would be 1 percent of the migration annually to the United States. It is not near that yet, yet it is growing and getting toward that. Especially as USCIS, the agency that manages the program, has been making the policies more clear and the processes more sensible and clear for individuals who are arranging financial investments and for the capitalists that are spending, more people have actually been eager and able to place initiative and cash into the process to discover great tasks and develop them, and after that a lot more capitalists have wanted to invest their cash and take the threat and make use EB5 Regional Center Program of the cash to create the tasks that is the factor of the program.

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These projects do not linger permanently, and USCIS comprehends that and are trying to speed up the program, speed the process - EB5 Regional Center Program. That does not imply that they are unwinding their scrutiny, and, as a matter of fact, they are all set to deny applications that are not certifying. And they do so, as was stated

The local facility part of the program is not. It becomes part of an appropriations bill that was established in 1992, and ever since that program has actually been extended 5 times for 19 years. It is time for it to be permanent, and it needs to be done currently and not nearer to the day of expiration in September.


The procedure takes a good while to work up a task and then to obtain the investors authorized. And they do not desire their money streaming via until they have been authorized. And the specter of the expiry of this Regional Facility Program in September is already inhibiting the development of jobs.

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I want to clear up that the Regional Center Program is not the like the half-million-dollar point. The concept of half a million or a million is a feature of the routine EB-5 law that is component of the code. It simply is a fact that a lot of the local centers that are pooling investments have established those in areas of high joblessness or in country locations where fifty percent- million-dollar financial investments are permitted, which makes sense.