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The program is placed in a really strange and non-helpful governmental place for the stimulation of international investment in the United States. We are giving away as well much for too tiny of a financial investment.


The regional centers, with their half-million schemes, basically undercut the more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they perform in Australia, ought to be about creating organization entities, not easy financial investments. It ought to have to do with producing genuine work, not clarify estimations regarding the indirect production of jobs, which is now component of the regulations.


Perhaps that is among the reasons that it has stopped working every year to get to the legal objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is too loaded with middlemen, both public and personal. The program has more than its share of detractions, which I will get involved in later if any person is interested.


This is a company that loves to say yes to candidates, yet as the table in my testimony shows, USCIS officers have a lot more trouble 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 rates of internal denials in this program and forever reason

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Seventh, in this program visas most likely to people that might not obtain them differently and to individuals whose planned financial investment is really less, according to the Federal Get, than the average mean total assets of all American families in 2007. Allow me expand on among my monitorings.


My estimate based upon the investors' eco-friendly card applications filed 2 years after the very first investment-- these are the strong ones that remain and are approved. This is 2009-- was that they had about $191 million verified-- that is my price quote. USCIS does not offer the kind of data that we can make use of on this.


So for every $100 of enhanced international investment that year, the EB program contributed one penny. Under a a lot more wobbly analytical base, the initial applications of potential immigrant financiers, USCIS is telling journalists that the degree of investment in the just-concluded year was concerning $1.2 billion. Let us approve that.

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Thank you for paying attention to me. I eagerly anticipate your remarks and concerns. [The ready declaration of David North shows up as a submission for the record.] Chairman Leahy. Thank you. 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 technique group.




Divine functioned as Principal Guidance of the United States Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Performing Director, and afterwards Performing Deputy Director. He has actually worked thoroughly with the EB-5 program secretive practice. He was chosen, as I understand, vice president of the Association to Invest in USA, the national sector 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 U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At the majority of, if all 10,000 slots were used, it would certainly be 1 percent of the immigration yearly to the USA. It is not near that yet, yet it is growing and obtaining toward that. Particularly as USCIS, the firm that supervises the program, has been making the rules more clear and the procedures more logical and clear for individuals who are arranging financial investments and for the financiers that are spending, more people have actually agreed and able to place effort and cash into the process to find excellent tasks and create them, and then much more capitalists have actually wanted to invest their money and take the threat and make use of the cash to produce the tasks that is the factor of the program.

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These jobs do not linger permanently, and USCIS understands 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 analysis, and, actually, they are prepared to reject applications that are not certifying. And they do so, as was pointed out


The local center component of the program is not. It becomes part of an appropriations bill that was passed in 1992, and given that then that program has actually been expanded five times for 19 years. It is time for it to be permanent, and it needs to be done now and not nearer to the website date of expiration in September.


The procedure takes a great while to develop a task and then to get the capitalists approved. And they do not desire their cash streaming through until they have been approved. And the specter of the expiration of this Regional Center Program in September is currently discouraging the development of jobs.

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I would certainly like to make clear that the Regional Center Program is not the like the half-million-dollar thing. The concept of half a million or a million is a feature of the normal EB-5 legislation that is part of the code. It just is a truth that a lot of the local centers that are pooling investments have actually set those instead of high unemployment or in backwoods where half- million-dollar investments are permitted, which makes good sense.