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The program is positioned in an extremely weird and non-helpful bureaucratic place for the stimulation of global financial investment in the United States. We are giving away too much for as well small of a financial investment.


The regional centers, with their half-million systems, essentially damaged the extra reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they do in Australia, ought to have to do with producing company entities, not passive financial investments. It should have to do with producing actual work, not specify computations concerning the indirect development of jobs, which is now part of the regulation.


Possibly that is among the reasons why it has actually fallen short year after year to reach the legal objective of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is also loaded with middlemen, both public and exclusive. The program has greater than its share of rumors, which I will certainly get involved in later if anybody is interested.


This is a company that loves to state yes to candidates, yet as the table in my testimony reveals, USCIS officers have a lot more difficulty with EB-5 applications than others. I think that is something that nobody has actually truly discussed much. EB5 Regional Center Program. There are high prices of inner rejections in this program and forever factor

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Seventh, in this program visas most likely to people who could not obtain them any various other way and to individuals whose scheduled investment is really less, according to the Federal Book, than the average mean internet worth of all American families in 2007. Allow me expand on among my monitorings.


My quote based upon the financiers' permit applications filed 2 years after the initial investment-- these are the solid ones that continue to be and are approved. This is 2009-- was that they had about $191 million verified-- that is my quote. USCIS does not offer the sort of data that we could utilize on this.


For every $100 of raised foreign investment that year, the EB program added one cent. Under a far more wobbly analytical base, the initial applications of potential immigrant financiers, USCIS is telling reporters that the degree of financial investment in the just-concluded year was regarding $1.2 billion. Let us approve that.

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Thanks for listening to me. I eagerly anticipate your remarks and concerns. [The ready statement of David North shows up as a submission for the record.] Chairman Leahy. Thanks. Our next witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's migration technique team.




Divine worked as Principal Advise of the USA Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Performing Director, and after that Performing Deputy Director. He has worked thoroughly with the EB-5 program secretive practice. He was elected, as I understand, vice head of state of the Association to Purchase United States, the nationwide market organization of regional centers.


Divine, we are thrilled to have you below. Please go ahead, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, PURCHASE THE United States (IIUSA) Mr. Divine. Thanks, more info Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At a lot of, if all 10,000 slots were made use of, it would be 1 percent of the migration every year to the USA. It is not near that yet, yet it is expanding and obtaining toward that. Especially as USCIS, the agency that oversees the program, has actually been making the rules clearer and the procedures a lot more rational and clear for individuals that are organizing financial investments and for the financiers that are spending, more individuals have agreed and able to place effort and cash into the process to discover excellent projects and establish them, and after that more financiers have actually wanted to spend their money and take the threat and utilize the cash to create the tasks that is the point of the program.

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These projects do not linger forever, and USCIS understands that and are trying to speed up the program, speed the process - EB5 Regional Center Program. That does not imply that they are relaxing their scrutiny, and, in fact, they prepare to deny applications that are not certifying. And they do so, as was stated


The local facility part of the program is not. It is component of an appropriations costs that was passed in 1992, and since then that program has been expanded 5 times for 19 years. It is time for it to be permanent, and it requires to be done now and not nearer to the day of expiry in September.


The procedure takes a great while to work up a project and after that to get the investors authorized. And they do not desire their money streaming through up until they have actually been approved. And the specter of the expiration of this Regional Facility Program in September is already inhibiting the development of jobs.

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I would love to clarify 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 function of the routine EB-5 law that belongs to the code. It just is a reality that most of the regional centers that are pooling financial investments have set those instead of high joblessness or in backwoods where fifty percent- million-dollar investments are allowed, and that makes good sense.