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The program is put in an extremely strange and non-helpful bureaucratic location for the stimulation of worldwide financial investment in the United States. We are giving away too much for also tiny of an investment.


The regional facilities, with their half-million schemes, basically damaged the more practical million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, ought to have to do with creating service entities, not easy investments. It should be about producing real work, not specify calculations concerning the indirect creation of work, which is now component of the regulations.


Maybe that is among the factors why it has actually fallen short time after time to reach the legislative objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is also filled up with intermediaries, both public and exclusive. The program has more than its share of rumors, which I will certainly obtain into later on if anybody is interested.


This is an agency that loves to state yes to applicants, yet as the table in my statement reveals, USCIS officers have a lot more difficulty with EB-5 applications than others. I think that is something that nobody has actually discussed much. EB5 Regional Center Program. There are high rates of inner rejections in this program and forever factor

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Seventh, in this program visas go to people who might not get them any kind of other method and to individuals whose organized investment is in fact less, according to the Federal Book, than the ordinary mean internet well worth of all American families in 2007. Let me expand on one of my monitorings.


My quote based upon the financiers' permit applications filed 2 years after the very first investment-- these are the strong ones that remain and are authorized. This is 2009-- was that they had about $191 million confirmed-- that is my estimate. USCIS does not provide the kind of data that we could make use of on this.


So for every single $100 of raised international investment that year, the EB program contributed one dime. Under a far more unsteady analytical base, the preliminary applications of would-be immigrant financiers, USCIS is telling journalists that the level of investment in the just-concluded year was regarding $1.2 billion. Allow us approve that.

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Thank you for listening to me. I expect your remarks and concerns. [The prepared declaration of David North appears as a submission for the document.] Chairman Leahy. Thank you. Our next witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's immigration method group.




Divine acted as Chief Counsel of the USA Citizenship and Migration Services from July 2004 up until November 2006, the year in which he was Acting Director, and then Acting Replacement Supervisor. He has worked extensively with the EB-5 program in exclusive technique. He was elected, as I comprehend, vice head of state of the Organization to Invest in USA, the nationwide market association of regional.


STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At many, if all 10,000 slots were utilized, it would certainly be 1 percent of the immigration annually to the United States. It is not near that yet, but it is growing and getting towards that. Particularly as USCIS, the agency that supervises the program, has actually been making the rules more clear and the procedures more logical and clear for individuals that are arranging financial investments and for the investors who are investing, even more individuals have agreed and able to put effort and money right into the process to locate good tasks and develop them, and then much more investors have been willing to invest their money and take the risk and make use of the cash to develop the work that is the point of the program.

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These projects find more do not wait around for life, and USCIS comprehends that and are attempting to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not mean that they are relaxing their scrutiny, and, in fact, they are all set to reject applications that are not certifying. And they do so, as was pointed out


The regional facility component of the program is not. It is component of an appropriations costs that was passed in 1992, and since then that program has actually been extended 5 times for 19 years. It is time for it to be irreversible, and it needs to be done now check out this site and not nearer to the day of expiration in September.


The procedure takes a good while to work up a task and after that to obtain the financiers accepted. And they do not want their money flowing through up until they have been authorized. And the specter of the expiration of this Regional Center Program in September is already preventing the growth of projects.

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I would love to clear up that the Regional Center Program is not the like the half-million-dollar thing. The idea of half find out this here a million or a million is a function of the normal EB-5 law that is part of the code. It just is a reality that a lot of the local facilities that are pooling investments have actually established those in locations of high unemployment or in rural locations where fifty percent- million-dollar financial investments are enabled, and that makes feeling.