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First, the program is placed in a really odd and non-helpful governmental area for the stimulation of global investment in the USA. Second, its scale is all incorrect. We are handing out way too much for as well tiny of a financial investment. Further, elevating endeavor funding half a million dollars a tranche is, to state the least, inefficient.


The regional facilities, with their half-million schemes, essentially damaged the more practical million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they perform in Australia, must be concerning developing company entities, not easy financial investments. It needs to be about creating genuine tasks, not clarify calculations regarding the indirect development of work, which is now part of the legislation.


Maybe that is one of the factors why it has stopped working year after year to get to the legislative goal of 10,000 investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is too filled up with middlemen, both public and personal. The program has more than its share of scandals, which I will enter into later on if anybody is interested.


This is a firm that loves to claim yes to applicants, yet as the table in my statement reveals, USCIS officers have much extra trouble with EB-5 applications than others. I think that is something that no one has actually really spoken about a lot. EB5 Regional Center Program. There are high prices of interior rejections in this program and forever reason

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Seventh, in this program visas go to people who can not get them differently and to individuals whose scheduled financial investment is actually less, according to the Federal Book, than the average mean total assets of all American families in 2007. Let me broaden on one of my observations.


My quote based on the capitalists' copyright applications filed 2 years after the initial investment-- these are the solid ones that remain and are approved. This is 2009-- was that they had concerning $191 million confirmed-- that is my estimate. USCIS does not provide the type of information that we could utilize on this.


For every $100 of enhanced foreign investment that year, the EB program contributed one cent. Under a a lot more wobbly analytical base, the initial applications of potential immigrant financiers, USCIS is telling journalists that the degree of investment in the just-concluded year was about $1.2 billion. Allow us accept that.

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Thanks for paying attention to me. I expect your comments and inquiries. [The prepared declaration of David North looks like an entry 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 immigration technique group.




Divine functioned as Principal Advice of the United States Citizenship and Immigration Solutions from July 2004 up until November 2006, the year in which he was Acting Supervisor, and after that Acting Replacement Supervisor. He has actually worked extensively with the EB-5 program in exclusive method. He was elected, as I comprehend, vice president of the Organization to Purchase USA, the nationwide market organization of regional centers.


Divine, we are happy to have you right here. Please go on, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, PURCHASE THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At most, if all 10,000 slots were used, it would be 1 percent of the immigration annually to the United States. It is not near that yet, however it is growing and getting toward that. Specifically as USCIS, the company that oversees the program, has been making the policies more clear and the processes extra sensible and clear for the people who are organizing investments and for the capitalists that are investing, even more individuals have been prepared and able to put effort and money right into the procedure to locate excellent jobs and develop them, and after that much more financiers have agreed to spend their money and take the danger and utilize the cash to create the jobs that is the point of the program.

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These tasks do not wait about for life, and USCIS understands that and are trying to speed up the program, speed the process - EB5 Regional Center Program. That does not mean that they are unwinding their analysis, and, as a matter of fact, they are ready to reject applications that are not qualifying. And they do so, as was stated


The regional center component of the program is not. It belongs to an appropriations expense that was passed in 1992, and given that then that program has actually 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 date of expiration in September.


The process takes a good while to website develop a task and after that to get the investors accepted. And they do not desire their cash flowing via up until they have actually been approved. And the specter of the expiry of this Regional Center Program in September is already discouraging the development of jobs.

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I wish to make clear that the Regional Facility Program is not the very same as the half-million-dollar point. The concept of half a million or a million is a function of the regular EB-5 legislation that is component of the code. It just is a truth that many of the regional facilities that are pooling investments have actually set those instead of high joblessness or in backwoods where fifty percent- million-dollar financial investments are permitted, which makes good sense.