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The program is placed in a really odd and non-helpful governmental location for the excitement of international investment in the United States. We are offering away as well much for also little of a financial investment.


The local centers, with their half-million plans, basically damaged the much more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they carry out in Australia, ought to have to do with developing business entities, not easy financial investments. It ought to have to do with producing actual work, not elaborate computations regarding the indirect production of tasks, which is currently part of the regulations.


Possibly that is among the reasons it has failed every year to get to the legal goal of 10,000 investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is too full of middlemen, both public and personal. The program has more than its share of scandals, which I will get into later on if any person is interested.


This is an agency that enjoys to say yes to candidates, yet as the table in my statement shows, USCIS police officers have far more difficulty with EB-5 applications than others. I think that is something that no one has really discussed much. EB5 Regional Center Program. There are high rates of internal rejections in this program and permanently reason

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Seventh, in this program visas go to individuals that might not get them otherwise and to people whose planned financial investment is in fact much less, according to the Federal Book, than the average mean internet worth of all American households in 2007. Allow me expand on one of my monitorings.


My price quote based on the investors' eco-friendly card applications filed 2 years after the very first financial investment-- these are the solid ones that stay and are accepted. This is 2009-- was that they had about $191 million verified-- that is my estimate. USCIS does not supply the kind of data that we can use on this.


So for every single $100 of increased international financial investment that year, the EB program added one penny. Under a far more unsteady analytical base, the initial applications of potential immigrant capitalists, USCIS is telling reporters that the degree of investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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Thanks for paying attention to me. I look ahead to your comments and questions. [The ready declaration of David North looks like a submission for the document.] 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 practice team.




Divine offered as Chief Advice of the USA Citizenship and Migration Services from July 2004 up until November 2006, the year in which he was Acting Supervisor, and after that Performing Replacement Director. He has worked extensively with the EB-5 program secretive method. He was elected, as I understand, vice president of the Organization to Spend in USA, the nationwide industry association of local.


Divine, we are delighted to have you view it right here. Please proceed, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At many, if all 10,000 slots were used, it would be 1 percent of the migration each year to the USA. It is not near that yet, yet it is expanding and getting toward that. Particularly as USCIS, the firm that supervises the program, has been making the regulations more clear and the processes much more logical and clear for the individuals that are look these up arranging investments and for the investors that are spending, more people have actually been ready and able to put effort and cash right into the procedure to locate excellent tasks and establish them, and afterwards more investors have agreed to spend their cash and take the danger and use the cash to develop the jobs that is the factor of the program.

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These jobs do not wait around for life, and USCIS recognizes that and are trying to speed up the program, speed up the process - EB5 Regional Center Program. That does not mean that they are unwinding their scrutiny, and, actually, they prepare to refute applications that are not qualifying. And they do so, as was pointed out


The local facility part of the program is not. It belongs to an appropriations bill that was enacted in 1992, and since then that program has been extended 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 develop a job and then to obtain the capitalists approved. And they do not desire their money flowing through up until they have been approved. And the specter of the expiration of this Regional Facility Program in September is currently preventing the growth of tasks.

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I wish to make clear that the Regional Center Program is not the same as the half-million-dollar thing. The concept of half a million or a million is a function of the routine EB-5 regulation click here for more that becomes part of the code. It just is a reality that the majority of the local centers that are merging investments have set those instead of high joblessness or in backwoods where fifty percent- million-dollar financial investments are enabled, and that makes sense.