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The program is positioned in a really odd and non-helpful governmental place for the stimulation of worldwide investment in the United States. We are providing away too much for also small of an investment.

The regional facilities, with their half-million schemes, basically undercut the much more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, should be concerning producing company entities, not passive financial investments. It should have to do with developing actual jobs, not clarify estimations concerning the indirect production of work, which is currently component of the regulation.


Perhaps that is one of the reasons that it has actually fallen short year after year to reach the legislative objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is also loaded with middlemen, both public and exclusive. The program has greater than its share of scandals, which I will certainly get involved in later on if anybody is interested.


This is a firm that enjoys to claim yes to applicants, yet as the table in my testimony reveals, USCIS police officers have far more difficulty with EB-5 applications than others. I believe that is something that nobody has truly talked around much. EB5 Regional Center Program. There are high rates of interior denials in this program and for excellent reason

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Seventh, in this program visas go to people that can not obtain them differently and to individuals whose planned financial investment is really less, according to the Federal Reserve, than the ordinary mean total assets of all American families in 2007. Allow me expand on one of my observations.


My estimate based on the investors' environment-friendly card applications filed 2 years after the initial investment-- these are the solid ones that continue to be and are authorized. This is 2009-- was that they had regarding $191 million verified-- that is my price quote. USCIS does not provide the kind of information that we can use on this.


So for every $100 of enhanced foreign financial investment that year, the EB program added one penny. Under a much more shaky analytical base, the preliminary applications of would-be immigrant financiers, USCIS is informing journalists that the level of financial investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thank you for paying attention to me. I eagerly anticipate your comments and concerns. [The ready statement of David North shows up informative post as an entry for the record.] Chairman Leahy. Thanks. 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 Principal Advice of the USA Citizenship and Immigration Solutions from July 2004 up until November 2006, the year in which he was Acting Director, and afterwards Performing Deputy Supervisor. He has worked extensively with the EB-5 program secretive technique. He was chosen, as I comprehend, vice president of the Association to Purchase United States, the nationwide market organization of local facilities.


DECLARATION OF ROBERT C. DIVINE, ATTORNEY, 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.


At many, if all 10,000 slots were used, it would certainly be 1 percent of the immigration yearly to the United States. It is not near that yet, but it is expanding and getting toward that. Particularly as USCIS, the agency that looks after the program, has been making the policies clearer and the processes much more reasonable and clear for individuals that are organizing financial investments and for the capitalists who are investing, even more individuals have actually wanted and able to put initiative and money into the procedure to locate great projects and create them, and after that a lot more financiers have been willing to spend their money and take the threat and utilize the money to create the tasks that is the point of the program.

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These projects do not linger for life, and USCIS understands that and are trying to speed pop over here up the program, speed up the process - EB5 Regional Center Program. That does not indicate that they are unwinding their scrutiny, and, actually, they prepare to refute applications that are not qualifying. And they do so, as was mentioned

The regional facility part of the program is not. It is component of an appropriations bill that was established in 1992, and given that then that program has been expanded five times for 19 years. It is time for it to be long-term, and it needs to be done now and not nearer to the date of expiry in September.


The procedure takes a great while to develop a project and afterwards to obtain the capitalists accepted. And they do not desire their money moving through till they have actually been authorized. And the specter straight from the source of the expiry of this Regional Center Program in September is already preventing the development of projects.

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I would certainly like to clear up that the Regional Facility Program is not the like the half-million-dollar point. The idea of half a million or a million is a function of the normal EB-5 law that is component of the code. It just is a fact that a lot of the regional facilities that are merging financial investments have actually set those instead of high joblessness or in backwoods where fifty percent- million-dollar investments are enabled, which makes good sense.