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The program is placed in a very strange and non-helpful administrative place for the excitement of global financial investment in the United States. We are giving away too much for too little of a financial investment.


The local facilities, with their half-million plans, basically undercut the much more practical million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they perform in Australia, ought to have to do with developing service entities, not passive financial investments. It must be about developing genuine work, not clarify calculations regarding the indirect development of tasks, which is now component of the legislation.


Maybe that is one of the reasons that it has fallen short every year to reach the legal goal of 10,000 investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is too filled up with middlemen, both public and personal. The program has greater than its share of scandals, which I will certainly enter into later on if any person is interested.


This is an agency that likes to say yes to applicants, yet as the table in my testimony shows, USCIS police officers have far more trouble with EB-5 applications than others. I believe that is something that no one has really discussed much. EB5 Regional Center Program. There are high rates of inner denials in this program and forever reason

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Seventh, in this program visas go to people who could not get them any other way and to people whose planned financial investment is really much less, according to the Federal Book, than the ordinary mean web well worth of all American family members in 2007. Allow me expand on one of my monitorings.


My quote based upon the financiers' copyright applications submitted 2 years after the first financial investment-- these are the strong ones that continue to be and are accepted. This is 2009-- was that they had regarding $191 million verified-- that is my estimate. USCIS does not provide the kind of information that we might utilize on this.


So for each $100 of increased foreign financial investment that year, the EB program added one dime. Under a a lot more shaky analytical base, the initial applications of would-be immigrant capitalists, USCIS is telling journalists that the degree of investment in the just-concluded year was about $1.2 billion. Allow us accept that.

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Thank you for listening to me. I look onward to your comments and concerns. [The ready declaration of David North looks like a submission for the record.] Chairman Leahy. Thank you. Our following witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's immigration practice team.




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


Divine, we are pleased to have you here. Please proceed, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thanks for read more having me.


At many, if all 10,000 ports were used, it would certainly be 1 percent of the immigration each year to the United States. It is not near that yet, but it is expanding and getting toward that. Especially as USCIS, the firm that manages the program, has actually been making the guidelines more clear and the processes extra logical and clear for the people who are arranging investments and for the capitalists who are investing, even more individuals have wanted and able to place initiative and cash right into the procedure to find great tasks and develop them, and afterwards extra investors have agreed to spend their cash and take the risk and use the cash to develop the work that is the point of the program.

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These projects do not linger forever, and USCIS comprehends that and are trying to speed the program, speed up the procedure - EB5 Regional Center Program. That does not suggest that they are unwinding their examination, and, as a matter of fact, they are prepared to reject applications that are not qualifying. And they do so, as was discussed


The regional facility part of the program is not. It becomes part of an appropriations costs that was passed in 1992, and ever 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 now and not nearer to the day of expiration in September.


The process takes an excellent while to work up a task and then to get the capitalists approved. And they do not desire their money moving 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 would love to make clear that the Regional Center Program is not the same as 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 component of the code. It simply is a truth that a lot of the local facilities that are pooling financial investments have actually established those instead of high joblessness or in country locations where fifty percent- million-dollar financial investments are enabled, which makes feeling.