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The program is positioned in a very strange and non-helpful governmental place for the excitement of global investment in the United States. Second, its range is all incorrect. We are handing out excessive for also small of a financial investment. Better, raising endeavor resources fifty percent a million dollars a tranche is, to state the least, ineffective.


The local centers, with their half-million systems, basically damaged the extra reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, should have to do with producing service entities, not passive financial investments. It must be regarding creating actual tasks, not elaborate estimations regarding the indirect creation of tasks, which is currently component of the regulations.


Perhaps that is just one of the reasons why it has actually stopped working every year to reach the legal goal of 10,000 investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is also full of intermediaries, both public and private. The program has even more than its share of detractions, which I will certainly get involved in later on if anybody is interested.


This is a firm that loves to state yes to applicants, however as the table in my testimony shows, USCIS policemans have a lot a lot more problem with EB-5 applications than others. I think that is something that nobody has actually truly discussed much. EB5 Regional Center Program. There are high rates of inner denials in this program and forever factor

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Seventh, in this program visas go to individuals that could not get them otherwise and to individuals whose scheduled investment is in fact much less, according to the Federal Book, than the ordinary mean total assets of all American family members in 2007. Allow me expand on one of my observations.


My estimate based upon the capitalists' permit applications submitted 2 years after the very first financial investment-- these are the strong ones that continue to be and are accepted. This is 2009-- was that they had regarding $191 million verified-- that is my estimate. USCIS does not offer the sort of data that we can make use of on this.


So for every single $100 of enhanced foreign financial investment that year, the EB program added one dime. Under a much more shaky analytical base, the first applications of would-be immigrant capitalists, USCIS is telling reporters that the degree of investment in the just-concluded year had to do with $1.2 billion. Let us accept that.

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Thanks for listening to me. I look ahead you can try these out to your comments and concerns. [The ready declaration of David North looks like an entry for the document.] 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 practice group.




Divine functioned as Principal Advice of the United States Citizenship and Migration Services from July 2004 until November 2006, the year in which he was Performing Director, and afterwards Performing Deputy Director. He has worked extensively with the EB-5 program in exclusive technique. He was elected, as I recognize, vice head of state of the Organization to Invest in United States, the national industry organization of regional.


Divine, we are delighted to have you below. Please go on, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE United States (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At many, if all 10,000 ports were utilized, it would certainly be 1 percent of the immigration yearly to the USA. It is not near that yet, but it article source is expanding and getting toward that. Especially as USCIS, the agency that looks after the program, has actually been making the guidelines clearer and the processes more rational and clear for individuals who are arranging financial investments and for the investors that are investing, even more individuals have been eager and able to place effort and cash right into the process to discover excellent projects and create them, and after that more financiers have actually agreed to spend their money and take the risk and use the cash to produce the jobs that is the point of the program.

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These tasks do not linger forever, and USCIS understands that and are trying to find speed the program, speed the procedure - EB5 Regional Center Program. That does not mean that they are relaxing their examination, and, actually, they prepare to reject applications that are not certifying. And they do so, as was discussed


The local center component of the program is not. It belongs to an appropriations costs 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 permanent, and it requires to be done now and not nearer to the day of expiration in September.


The procedure takes an excellent while to develop a task and after that to get the financiers accepted. And they do not want their cash flowing with until they have been approved. And the specter of the expiry of this Regional Center Program in September is already discouraging the advancement of jobs.

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I would such as to clarify that the Regional Center Program is not the same as the half-million-dollar point. The idea of half a million or a million is a feature of the regular EB-5 law that belongs to the code. It simply is a truth that a lot of the local facilities that are merging investments have set those instead of high unemployment or in rural areas where half- million-dollar investments are enabled, and that makes good sense.