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The program is placed in a really odd and non-helpful bureaucratic area for the stimulation of worldwide investment in the United States. We are providing away as well much for as well little of a financial investment.


The local facilities, with their half-million plans, essentially damaged the much more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, should have to do with producing service entities, not easy financial investments. It should be about producing real work, not elaborate calculations regarding the indirect creation of tasks, which is currently component of the legislation.


Maybe that is just one of the factors why it has fallen short time after time to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is too filled with intermediaries, both public and exclusive. The program has even more than its share of detractions, which I will enter later on if anyone is interested.


This is a firm that loves to say yes to candidates, yet as the table in my testimony shows, USCIS police officers have far more difficulty with EB-5 applications than others. I assume that is something that nobody has really spoken about a lot. EB5 Regional Center Program. There are high prices of internal denials in this program and completely factor

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Seventh, in this program visas most likely to individuals who can not obtain them differently and to people whose planned financial investment is actually less, according to the Federal Reserve, than the average mean total assets of all American families in 2007. Let me increase on among my monitorings.


My price quote based on the financiers' permit applications submitted 2 years after the initial financial investment-- these are the strong ones that stay and are authorized. This is 2009-- was that they had regarding $191 million verified-- that is my price quote. USCIS does not give the sort of data that we could use on this.


For every $100 of raised foreign investment that year, the EB program contributed one penny. Under a far more shaky analytical base, the first applications of potential immigrant investors, USCIS is informing reporters that the level of financial investment in the just-concluded year was regarding $1.2 billion. Let us accept that.

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Thank you for listening to me. I eagerly anticipate your comments and questions. [The ready statement of David North looks like a submission 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 firm's immigration method team.




Divine served as Chief Counsel of the USA Citizenship and Immigration Solutions from July 2004 up until November find out here now 2006, the year in which he was Performing Supervisor, and afterwards Acting Deputy Director. He has worked thoroughly with the EB-5 program look here secretive practice. He was elected, as I recognize, vice president of the Organization to Invest in United States, the national sector association of regional.


DECLARATION OF ROBERT C. DIVINE, LAWYER, 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 a lot of, if all 10,000 ports were utilized, it would be 1 percent of the migration every year to the United States. It is not near that yet, but it is expanding and getting towards that. Especially as USCIS, the firm that looks after the program, has actually been making the policies clearer and the procedures much more sensible and clear for individuals that are arranging investments and for the financiers who are investing, more individuals have actually wanted and able to place effort and money right into the process to discover excellent projects and develop them, and afterwards more financiers have actually agreed to spend their money and take the danger and utilize the cash to create the tasks that is the point of the program.

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These tasks do not linger permanently, and USCIS understands that and are trying to speed the program, speed the procedure - EB5 Regional Center Program. That does not indicate that they are relaxing their scrutiny, important site and, as a matter of fact, they are ready to refute applications that are not certifying. And they do so, as was discussed


The regional facility component of the program is not. It becomes part of an appropriations costs that was enacted in 1992, and considering that then that program has actually 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 procedure takes a good while to work up a task and afterwards to obtain the investors authorized. And they do not want their money moving with till they have been accepted. And the specter of the expiration of this Regional Facility Program in September is currently preventing the growth of jobs.

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I would like to clear up that the Regional Facility Program is not the very same as the half-million-dollar point. The concept of half a million or a million is a feature of the normal EB-5 regulation that becomes part of the code. It just is a reality that the majority of the regional centers that are pooling financial investments have actually established those in locations of high unemployment or in backwoods where half- million-dollar financial investments are allowed, which makes feeling.