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First, the program is placed in a very weird and non-helpful governmental place for the stimulation of global financial investment in the USA. Second, its range is all incorrect. We are distributing way too much for as well small of a financial investment. Better, increasing equity capital half a million dollars a tranche is, to say the least, ineffective.


The local facilities, with their half-million plans, basically damaged the more reasonable 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 regarding creating business entities, not passive financial investments. It needs to have to do with producing actual work, not elaborate calculations about the indirect creation of jobs, which is now part of the legislation.


Perhaps that is one of the factors why it has actually fallen short time after time to get to the legal objective of 10,000 investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is as well full of middlemen, both public and private. The program has even more than its share of rumors, which I will certainly get into later on if anyone is interested.


This is an agency that enjoys to claim yes to candidates, but as the table in my testimony shows, USCIS officers have a lot more problem with EB-5 applications than others. I believe that is something that nobody has actually discussed a lot. EB5 Regional Center Program. There are high prices of internal rejections in this program and completely reason

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Seventh, in this program visas most likely to individuals who could not get them otherwise and to people whose scheduled financial investment is really much less, according to the Federal Reserve, than the average mean internet worth of all American families in 2007. Let me broaden on one of my monitorings.


My price quote based on the capitalists' permit applications submitted 2 years after the first financial investment-- these are the solid ones that continue to be and are accepted. This is 2009-- was that they had about $191 million confirmed-- that is my quote. USCIS does not offer the kind of information that we can utilize on this.


For every $100 of raised international financial investment that year, the EB program added one penny. Under a much extra shaky analytical base, the first applications of would-be immigrant investors, USCIS is telling journalists that the degree of financial investment in the just-concluded year was about $1.2 billion. Let us accept that.

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Thanks for listening to me. I anticipate your remarks and concerns. [The prepared declaration of David North shows up as a submission for the document.] 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 company's immigration method group.




Divine functioned as Principal Counsel of the United States Citizenship and Migration Providers from July 2004 until November 2006, the year in which he was Acting Supervisor, and after that Acting Deputy Director. He More about the author has functioned thoroughly with the EB-5 program in exclusive practice. He was elected, as I recognize, vice head of state of the Association to Spend in USA, the nationwide industry association of local centers.


Divine, we are happy to have you here. Please go ahead, sir. STATEMENT 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. Thank you for having me.


At many, if all 10,000 slots were used, it would be 1 percent of the migration annually to the United States. It is not near that yet, but it is growing and obtaining towards that. Specifically as USCIS, the firm that looks after the program, has actually been making the regulations more clear and the procedures extra sensible and clear for individuals that are arranging investments and for the investors who are spending, even more individuals have wanted and able to place initiative and cash right into the procedure to discover great jobs and create them, and then a lot more financiers have actually wanted to invest their money and take the danger and utilize the cash to create the tasks that is the point of the program.

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These tasks do not linger for life, and USCIS understands that and are attempting to speed the program, speed the procedure - EB5 Regional Center Program. That does not mean that they are unwinding their scrutiny, and, in truth, they prepare to deny applications that are not qualifying. And they do so, as was mentioned


The this link local facility component of the program is not. It is component of an appropriations expense that was passed in 1992, and given that then 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 currently and not nearer to the date of expiration in September.


The process takes an excellent while to work up a task and after that to get important link the financiers authorized. And they do not want their money moving with until they have been approved. And the specter of the expiration of this Regional Facility Program in September is currently preventing the growth of jobs.

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I want to clear up that the Regional Facility Program is not the very same as the half-million-dollar thing. The concept of half a million or a million is a function of the regular EB-5 law that becomes part of the code. It simply is a reality that most of the local centers that are merging financial investments have set those instead of high joblessness or in backwoods where fifty percent- million-dollar investments are enabled, which makes feeling.