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First, the program is placed in an extremely weird and non-helpful governmental place for the stimulation of global financial investment in the United States. Second, its scale is all wrong. We are handing out excessive for too little of a financial investment. Further, increasing endeavor resources fifty percent a million dollars a tranche is, to say the least, inefficient.

The regional facilities, with their half-million schemes, basically damaged the much more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, ought to be regarding creating business entities, not easy investments. It must have to do with developing real jobs, not clarify estimations concerning the indirect production of jobs, which is now component of the legislation.


Maybe that is among the factors why it has fallen short every year to reach the legal objective of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is as well loaded with intermediaries, both public and private. The program has even more than its share of scandals, which I will enter later if anyone is interested.


This is a firm that likes to say yes to candidates, but as the table in my testament reveals, USCIS policemans have a lot more problem with EB-5 applications than others. I think that is something that nobody has actually truly spoken about a lot. EB5 Regional Center Program. There are high rates of inner denials in this program and permanently reason

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Seventh, in this program visas go to individuals that could not get them otherwise and to people whose scheduled investment is really less, according to the Federal Reserve, than the typical mean total assets of all American family members in 2007. Let me broaden on one of my monitorings.


My quote based on the capitalists' permit applications filed 2 years after the first investment-- these are the solid ones that remain and are authorized. This is 2009-- was that they had regarding $191 million confirmed-- that is my estimate. USCIS does not provide the type of information that we could make use of on this.


So for each $100 of boosted foreign investment that year, the EB program contributed one penny. Under a much more unsteady analytical base, the initial applications of potential immigrant capitalists, USCIS is telling reporters that the level of investment in the just-concluded year was concerning $1.2 billion. Allow us accept that.

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Thanks for listening to me. I look ahead to your remarks and questions. [The prepared declaration of David North looks like a submission for the document.] 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 company's migration method team.

Divine functioned as Chief Guidance of the USA Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Acting Supervisor, and afterwards Performing Deputy Supervisor. He has actually functioned extensively with the EB-5 program in personal technique. He was chosen, as I comprehend, vice head of state of the Association to Spend in United States, the national sector association of regional.


Divine, we are thrilled to have you here. Please go on, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY THE USA (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At most, if all 10,000 ports were used, it would certainly be 1 percent of the immigration every year to the USA. It is not near that yet, however it is expanding and getting toward that. Specifically as USCIS, the company that looks after the program, has been making the policies more clear and the procedures more reasonable and clear for individuals who are arranging investments and for the financiers that are spending, more people have actually been willing and able to place initiative and money into the procedure to locate good tasks and develop them, and after that a lot more capitalists have agreed to invest their money and take the danger and make use of the cash to create the jobs that is the point of the program.

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These jobs do not wait about for life, and USCIS understands that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That does not mean that they are relaxing their analysis, and, in reality, they prepare to reject applications that are not qualifying. And they do so, as was stated

The local center component of the program is not. It becomes part of an appropriations expense that was established in 1992, and ever website since that program has actually been prolonged 5 times for 19 years. It is time for it to be permanent, and it requires to be done currently and not nearer to the date of expiration in September.


The procedure takes a good while to work up a task and then to get the capitalists approved. And they do not want their cash flowing through up until they have actually been approved. And the specter of the expiration of this Regional Facility Program in September is currently dissuading the growth of projects.

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I want to clear up 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 legislation that is part of the code. It just is a truth that the majority of the regional centers that are pooling investments have set those instead of high joblessness or in country locations where fifty percent- million-dollar financial investments are enabled, and that makes sense.