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The program is put in an extremely strange and non-helpful bureaucratic area for the stimulation of global investment in the United States. We are offering away as well much for too small of a financial investment.

The regional centers, with their half-million schemes, essentially undercut the extra sensible million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they do in Australia, should have to do with producing business entities, not easy investments. It needs to be concerning developing genuine jobs, not elaborate calculations about the indirect creation of work, which is currently part of the regulations.


Perhaps that is one of the reasons it has actually stopped working every year to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is as well filled with intermediaries, both public and private. The program has even more than its share of detractions, which I will get right into later on if any person is interested.


This is a company that enjoys to say yes to candidates, yet as the table in my testimony reveals, USCIS policemans have a lot more trouble with EB-5 applications than others. I believe that is something that nobody has truly spoken about a lot. EB5 Regional Center Program. There are high prices of interior rejections in this program and forever factor

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Seventh, in this program visas go to people who can not obtain them differently and to people whose planned financial investment is actually less, according to the Federal Get, than the typical mean total assets of all American households in 2007. Let me broaden on among my monitorings.


My price quote based on the financiers' permit applications submitted 2 years after the very first investment-- these are the strong ones that stay and are authorized. This is 2009-- was that they had about $191 million verified-- that is my quote. USCIS does not give the type of data that we could make use of on this.


For every $100 of increased international financial investment that year, the EB program contributed one penny. Under a a lot more wobbly analytical base, the first applications of prospective immigrant capitalists, USCIS is informing reporters that the level of financial investment in the just-concluded year was about $1.2 billion. Let us approve that.

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Thank you for listening to me. I expect your remarks and concerns. [The ready declaration of David North looks like a submission for the record.] Chairman Leahy. Thanks. Our next 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 worked as Principal Counsel of the United States Citizenship and Migration Providers from July 2004 till November 2006, the year in which he was Performing Director, and afterwards Acting Replacement Supervisor. He has actually worked thoroughly with the EB-5 program in private practice. He was chosen, as I understand, vice president of the Association to Spend in USA, the national industry organization of regional.


Divine, we are delighted to have you here. Please proceed, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY THE U.S.A. (IIUSA) Mr. Divine. Thanks, 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 yearly to the United States. It is not near that yet, but it is growing and obtaining toward that. Specifically as USCIS, the agency that looks after the program, has been making the guidelines clearer and the processes much more sensible and clear for individuals who are arranging financial investments and for the investors who are investing, more individuals have wanted and able to place effort and cash right into the procedure to locate excellent tasks and create them, and after that much more capitalists have actually agreed to invest their cash and take the risk and utilize the cash to create the jobs that is the point Continued of the program.

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These projects do not linger permanently, and USCIS recognizes that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That does not suggest that they are relaxing their scrutiny, and, in reality, they prepare to reject applications that are not certifying. And they do so, as was pointed out

The local facility component of the program is not. It belongs to an appropriations costs that was passed in 1992, and considering that then that program has been expanded five times for 19 years. It is time for it to be this page permanent, and it requires to be done currently and not nearer to the day of expiration in September.


The procedure takes an excellent while to function up a task and after that to get the capitalists authorized. And they do not want their money streaming via until they have been authorized. And the specter of the expiration of this Regional Facility Program in September is currently dissuading the growth of projects.

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I want to make clear that the Regional Facility Program is not the very same as the half-million-dollar thing. The idea of half a million or a million is a function of the regular EB-5 legislation that is part of my link the code. It just is a fact that many of the local facilities that are merging investments have established those in places of high unemployment or in backwoods where half- million-dollar financial investments are enabled, and that makes good sense.