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The program is put in a really weird and non-helpful administrative area for the stimulation of worldwide investment in the United States. We are offering away too much for too tiny of an investment.


The local facilities, with their half-million schemes, basically damaged the much more practical million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they perform in Australia, ought to have to do with producing company entities, not easy financial investments. It ought to have to do with creating genuine work, not specify computations regarding the indirect creation of jobs, which is now component of the regulation.


Possibly that is just one of the reasons why it has fallen short time after time to reach the legislative objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is too filled up with middlemen, both public and personal. The program has even more than its share of scandals, which I will obtain right into later if anyone is interested.


This is a company that likes to claim yes to candidates, but as the table in my testament shows, USCIS police officers have a lot more problem with EB-5 applications than others. I think that is something that nobody has truly discussed a lot. EB5 Regional Center Program. There are high prices of interior denials in this program and permanently reason

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Seventh, in this program visas go to people who could not obtain them differently and to individuals whose planned financial investment is actually much less, according to the Federal Book, than the typical mean net worth of all American family members in 2007. Let me broaden on one of my monitorings.


My quote based on the investors' eco-friendly card applications filed 2 years after the very first investment-- these are the strong ones that stay and are approved. This is 2009-- was that they had concerning $191 million verified-- that is my estimate. USCIS does not provide the sort of data that we could use on this.


For every $100 of raised international investment that year, the EB program added one cent. Under a far more unsteady analytical base, the preliminary applications of prospective immigrant capitalists, USCIS is telling reporters that the level of financial investment in the just-concluded year had to do with $1.2 billion. Let us accept that.

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Thank you for listening to me. I expect your remarks and concerns. [The ready declaration of David North shows up as a submission for the record.] Chairman Leahy. Thanks. Our next witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's migration method team.




Divine offered as Principal Counsel of the USA Citizenship and Migration Services from July 2004 up until November 2006, the year in which he was Acting Director, and after that Performing Deputy Director. 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 Association to Purchase USA, the nationwide industry organization of local centers.


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


At a lot of, if all 10,000 slots were made use of, it would be 1 percent of the migration yearly to the USA. It is not near that yet, but it is growing and obtaining toward that. Specifically as USCIS, the company that looks after the program, has actually been making the guidelines more clear and the find more procedures much more logical and clear for individuals who are arranging investments and for the financiers who are investing, even more people have actually wanted and able to place effort visit site and cash right into the process to locate good projects and develop them, and after that a lot more investors have actually been prepared to invest their cash and take the risk and make use of the cash to produce the jobs that is the factor of the program.

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These jobs do not linger permanently, and USCIS recognizes that and are attempting to speed the program, speed up the procedure - EB5 Regional Center Program. That does not mean that they are relaxing their examination, and, in fact, they are prepared to refute applications that are not qualifying. And they do so, as was stated


The regional facility component of the program is not. It is component of an appropriations expense that was enacted in 1992, and since then that program has actually been extended five times for 19 years. It is time for it to be long-term, and it requires to be done now and not nearer to the date of expiry in September.


The process takes a great while to function up a project and after that to get the financiers accepted. And they do not want their cash streaming with till they have actually been approved. And the specter of the expiry of this Regional Center Program in September is already preventing the growth of tasks.

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I would love to clear up that the Regional Facility Program is not the like the half-million-dollar thing. The concept of half a million or a million is a feature of imp source the routine EB-5 law that belongs to the code. It just is a truth that the majority of the regional facilities that are merging financial investments have established those in locations of high joblessness or in backwoods where half- million-dollar financial investments are enabled, which makes sense.