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The program is put in an extremely strange and non-helpful administrative location for the excitement of international financial 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 plans, essentially damaged the more sensible 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 easy financial investments. It ought to have to do with developing actual tasks, not clarify calculations concerning the indirect development of jobs, which is now component of the legislation.

Probably that is one of the reasons it has stopped working time after time to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is as well full of intermediaries, both public and personal. The program has more than its share of rumors, which I will certainly get involved in later on if any person is interested.

This is an agency that loves to state yes to candidates, but as the table in my testimony reveals, USCIS officers have far more difficulty with EB-5 applications than others. I think that is something that nobody has actually actually spoken about a lot. EB5 Regional Center Program. There are high rates of internal rejections in this program and for good reason

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Seventh, in this program visas most likely to individuals that might not get them any kind of other method and to people whose planned investment is actually less, according to the Federal Get, than the ordinary mean internet well worth of all American families in 2007. Let me broaden on one of my monitorings.

My quote based upon the capitalists' copyright applications submitted 2 years after the very first investment-- these are the solid ones that remain and are authorized. This is 2009-- was that they had concerning $191 million verified-- that is my estimate. USCIS does not offer the sort of information that we might utilize on this.

For every $100 of enhanced foreign financial investment that year, the EB program added one dime. Under a a lot more shaky statistical base, the initial applications of potential immigrant investors, USCIS is telling reporters that the level of 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 expect your remarks and concerns. [The prepared statement of David North shows up as an entry for the document.] Chairman Leahy. Thank you. Our next 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 functioned as Chief Guidance of the United States Citizenship and Migration Solutions from July 2004 up until November 2006, the year in which he was Performing Director, and afterwards Acting Deputy Director. He has functioned thoroughly with the EB-5 program in personal method. He was chosen, as I recognize, vice president of the Organization to Invest in United States, the nationwide industry organization of regional.

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

At many, if all 10,000 ports were used, it would certainly be 1 percent of the immigration annually to the United States. It is not near that yet, yet it is growing and obtaining toward that. Specifically as USCIS, the company that supervises the program, has actually been making the guidelines more clear and the procedures a lot more rational and clear for the individuals that are organizing investments and for the capitalists who are investing, even more individuals have actually agreed and able to place initiative and cash into the procedure to find great projects and create them, and afterwards much more capitalists have actually agreed to spend their cash and take the danger and use the cash to produce the tasks that is the factor of the program.

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These jobs do not wait around for life, and USCIS comprehends that and are trying to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not suggest that they are relaxing their analysis, and, actually, more info they are all set to deny applications that are not qualifying. And they do so, as was pointed out

The local center component of the program is not. It is part of an appropriations expense that was established in 1992, and ever since that program has been prolonged 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 day of expiration in September.

The procedure takes a good while to develop a project and then to get the investors approved. And they do not want their cash flowing through up until they have actually been approved. And the specter of the expiry of this Regional Facility Program in September is already discouraging the advancement of tasks.

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I wish 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 the regular EB-5 regulation that belongs to the code. It just is a reality that most of the regional centers that are merging financial investments have set those instead of high unemployment or in rural areas where fifty percent- million-dollar investments are allowed, and that makes good sense.

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