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The program is put in a very weird and non-helpful administrative location for the stimulation of global financial investment in the United States. We are giving away too much for also small of a financial investment.


The local centers, with their half-million systems, essentially damaged the much more practical million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, must be concerning creating business entities, not passive investments. It needs to have to do with producing actual work, not elaborate calculations about the indirect production of work, which is now component of the legislation.


Possibly that is one of the reasons that it has actually fallen short year after year to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is also loaded with intermediaries, both public and private. The program has more than its share of rumors, which I will get right into later if anybody is interested.


This is a company that enjoys to claim yes to candidates, yet as the table in my testimony reveals, USCIS policemans have far more difficulty with EB-5 applications than others. I think that is something that no one has really discussed much. EB5 Regional Center Program. There are high rates of inner 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 people whose planned financial investment is in fact less, according to the Federal Get, than the average mean internet well worth of all American families in 2007. Allow me expand on one of my observations.


My estimate based on the capitalists' eco-friendly card applications filed 2 years after the very first investment-- these are the strong ones that continue to be and are authorized. This is 2009-- was that they had concerning $191 million confirmed-- that is my price quote. USCIS does not give the sort of information that we can utilize on this.


For every $100 of enhanced foreign financial investment that year, the EB program added one dime. Under a far more wobbly statistical base, the first applications of would-be immigrant investors, USCIS is informing journalists that the level of financial investment in the just-concluded year was regarding $1.2 billion. Allow us approve that.

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Thanks for paying attention to me. I look ahead to your remarks and questions. [The ready declaration of David North appears as an entry for the record.] Chairman Leahy. Thanks. Our following witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's migration practice team.




Divine functioned as Principal Guidance of the USA Citizenship and Immigration Solutions from July 2004 up until November 2006, the year in which he was Performing Supervisor, and afterwards Acting Replacement Director. He has functioned extensively with the EB-5 program in private method. He was elected, as I recognize, vice president of the Association to Spend in USA, the nationwide sector association of regional facilities.


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


At the majority of, if all 10,000 ports were utilized, it would certainly be 1 percent of the migration every year to the United States. It is not near that yet, yet it is growing and getting towards that. Particularly as USCIS, the agency that oversees the program, has been making the guidelines more clear and the processes a lot more sensible and clear for individuals who are organizing about his financial investments and for the capitalists that are spending, even more individuals have been ready and able to put initiative and money into the process to discover good jobs and create them, and after that much more capitalists have agreed to invest their cash and take the danger and utilize the money to produce the work that is the factor of the program.

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These tasks do not wait around permanently, and USCIS recognizes that and are trying to speed up the program, speed up the process - EB5 Regional Center Program. That does not indicate that they are relaxing their scrutiny, and, actually, they are all set 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 expense that was enacted in 1992, and given that then that program has been extended 5 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 expiry in September.


The process takes a good while to function up a project and then to obtain the capitalists authorized. And they do not want their cash streaming with until they see here have been see here now accepted. And the specter of the expiration of this Regional Facility Program in September is currently discouraging the advancement of tasks.

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I would certainly such as to make clear that the Regional Center Program is not the like the half-million-dollar thing. The idea of half a million or a million is a feature of the routine EB-5 legislation that is part of the code. It simply is a fact that a lot of the local centers that are pooling investments have actually set those instead of high unemployment or in rural locations where fifty percent- million-dollar financial investments are allowed, which makes good sense.