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Initially, the program is placed in a really strange and non-helpful bureaucratic area for the excitement of global financial investment in the United States. Second, its scale is all incorrect. We are distributing too much for also small of an investment. Further, elevating financial backing fifty percent a million bucks a tranche is, to say the least, inefficient.


The regional centers, with their half-million plans, basically damaged the much more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they perform in Australia, need to be about developing company entities, not easy investments. It must be regarding producing real work, not elaborate computations regarding the indirect creation of work, which is now part of the regulation.


Possibly 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 clumsy, and the program is too full of intermediaries, both public and personal. The program has greater than its share of rumors, which I will get right into later if any person is interested.


This is a firm that enjoys to state yes to applicants, but as the table in my statement reveals, USCIS officers have a lot more difficulty with EB-5 applications than others. I assume that is something that nobody has actually spoken about a lot. EB5 Regional Center Program. There are high rates of interior rejections in this program and for good reason

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Seventh, in this program visas go to individuals who might not obtain them any kind of other method and to people whose scheduled investment is actually less, according to the Federal Book, than the average mean total assets of all American families in 2007. Let me broaden on one of my observations.


My price quote based upon the investors' environment-friendly card applications submitted 2 years after the very first financial investment-- these are the solid ones that continue to be and are approved. This is 2009-- was that they had regarding $191 million validated-- that is my quote. USCIS does not supply the type of data that we can make use of on this.


For every $100 of increased foreign investment that year, the EB program added one penny. Under a much more unsteady analytical base, the preliminary applications of would-be immigrant financiers, USCIS is informing journalists that the degree of investment in the just-concluded year had to do with $1.2 billion. Let us approve that.

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Thanks for paying attention to me. I look onward to your remarks and questions. [The ready declaration of David North looks like 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 company's immigration technique group.




Divine functioned as Chief Guidance of the USA Citizenship and Migration Services from July 2004 till November 2006, the year in which he was Acting Director, and then Performing Replacement Supervisor. He has actually worked extensively with the EB-5 program in private technique. He was chosen, as I recognize, vice president of the Association to Purchase U.S.A., the national industry organization of regional facilities.


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


At most, if all 10,000 ports were utilized, it would be 1 percent of the migration annually to the USA. It is not near that yet, but it is growing and obtaining toward that. Specifically as USCIS, the firm that oversees the program, has been making the rules clearer and the procedures much more reasonable and clear for individuals who are arranging investments and for the capitalists who are investing, even more people have wanted and able to put initiative and money right into the process to locate good tasks and establish them, and then extra investors have actually agreed to invest their money and take the threat and use the cash to develop the tasks that is the point of the program.

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These jobs do not linger permanently, and USCIS understands that and are trying to speed up the program, speed the process - EB5 Regional Center Program. That does not mean that they are unwinding their examination, and, actually, they prepare to refute applications that are not qualifying. EB5 Regional Center Program And they do so, as was discussed


The local facility component of the program is not. It becomes part of an appropriations expense that was established in 1992, and considering that then that program has been expanded five times for 19 years. It is time for it to be irreversible, and it requires to be done currently and not nearer to the date of expiration in September.


The process takes an excellent while to function up a job and after that to get the investors accepted. And they do not desire their money flowing with until they have been authorized. And the specter of the expiration of this Regional Center Program in September is already preventing the advancement of tasks.

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I would certainly like 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 function of the regular EB-5 law that is component of the code. It just is a truth that a lot of the local centers that are pooling financial investments have set those in locations of high unemployment or in backwoods where fifty percent- million-dollar financial investments are enabled, which makes good sense.