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The program is placed in a very strange and non-helpful governmental area for the excitement of worldwide financial investment in the United States. We are giving away also much for also tiny of a financial investment.


The local centers, with their half-million schemes, essentially undercut the much more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they perform in Australia, need to be concerning producing business entities, not passive investments. It must have to do with creating genuine tasks, not clarify estimations concerning the indirect production of jobs, which is now part of the regulations.


Probably that is just one of the reasons why it has failed time after time to get to the legislative goal of 10,000 investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is also loaded with intermediaries, both public and exclusive. The program has even more than its share of scandals, which I will get into later on if any person is interested.


This is an agency that enjoys to claim yes to applicants, but as the table in my statement shows, USCIS police officers have a lot more problem with EB-5 applications than others. I believe that is something that nobody has really talked about a lot. EB5 Regional Center Program. There are high prices of inner denials in this program and completely factor

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Seventh, in this program visas most likely to individuals that could not obtain them differently and to individuals whose organized investment is really much less, according to the Federal Get, than the average mean net worth of all American family members in 2007. Let me expand on among my observations.


My price quote based upon the financiers' permit applications submitted 2 years after the initial financial investment-- these are the strong ones that continue to be and are accepted. This is 2009-- was that they had concerning $191 million confirmed-- that is my price quote. USCIS does not give the type of information that we can utilize on this.


For every $100 of increased foreign financial investment that year, the EB program contributed one dime. Under a far more wobbly statistical base, the preliminary applications of prospective immigrant financiers, USCIS is telling reporters that the level of investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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Thanks for listening to me. I expect your remarks and questions. [The prepared declaration of David North appears as an entry 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 firm's migration practice team.




Divine acted as Principal Advise of the United States Citizenship and Immigration Services from July 2004 till November 2006, the year in which he was Performing Director, and afterwards Acting Deputy Supervisor. He has worked thoroughly with the EB-5 program secretive technique. He was chosen, as I comprehend, vice president of the Organization to Spend in U.S.A., the nationwide sector organization of local centers.


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 HEAD OF STATE, BUY THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At most, if all 10,000 ports were made use of, it would certainly be 1 percent of the immigration every year to the United States. It is not near that yet, but it is expanding and getting toward that. Specifically as USCIS, the company that oversees the program, has been making the regulations more clear and the procedures much more reasonable and clear for the people that are arranging financial investments and for the investors who are spending, more individuals have been prepared and able to put effort and cash right into the process to locate excellent jobs and create them, and afterwards extra financiers have agreed to invest their cash and take the threat and utilize the money to develop the jobs that is the factor of the program.

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These jobs do not linger for life, and USCIS understands that and are attempting to speed up the program, speed the procedure - EB5 Regional Center Program. That does not indicate that they are unwinding their scrutiny, and, as a matter of fact, they prepare to deny applications read more that are not qualifying. And they do so, as was pointed out


The regional center part of the program is not. It is component of an appropriations bill that was enacted in 1992, and ever since that program has actually been expanded 5 times for 19 years. It is time for it to be irreversible, and it requires to be done now and not nearer to the date of expiration in September.


The procedure takes a great while to function up a task and after that to get the investors accepted. And they do not desire their money streaming through up until they have actually been approved. And the specter of the expiry of this Regional Center Program in September is already dissuading the advancement of tasks.

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I want to clarify that the Regional Facility Program is not the exact same as the half-million-dollar point. 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 fact that the majority of the regional facilities that are merging financial investments have actually established those in places of high joblessness or in backwoods where fifty percent- million-dollar investments are enabled, which makes sense.