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The program is placed in an extremely weird and non-helpful governmental location for the excitement of international investment in the United States. We are giving away too much for also tiny of a financial investment.

The local centers, with their half-million schemes, essentially undercut the extra practical million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, need to be about creating business entities, not passive investments. It must have to do with developing actual work, not elaborate estimations about the indirect development of jobs, which is now component of the regulation.

Maybe that is among the reasons that it has fallen short time after time to reach the legislative goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is also full of intermediaries, both public and personal. The program has more than its share of scandals, which I will certainly obtain right into later if anyone is interested.

This is an agency that loves to state yes to applicants, but as the table in my testament reveals, USCIS police officers have much extra problem with EB-5 applications than others. I believe that is something that nobody has actually truly spoken about much. EB5 Regional Center Program. There are high rates of inner denials in this program and forever reason

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Seventh, in this program visas most likely to individuals that can not get them otherwise and to individuals whose planned investment is really much less, according to the Federal Book, than the ordinary mean total assets of all American households in 2007. Let me expand on one of my observations.

My estimate based on the financiers' copyright applications submitted 2 years after the initial financial investment-- these are the strong ones that continue to be and are approved. This is 2009-- was that they had about $191 million confirmed-- that is my quote. USCIS does not give the sort of information that we can use on this.

So for every single $100 of boosted international financial investment that year, the EB program contributed one cent. Under a a lot more wobbly statistical base, the initial applications of potential immigrant investors, USCIS is telling journalists that the level of financial investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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Thanks for listening to me. I eagerly anticipate your remarks and concerns. [The prepared statement of David North looks like an entry for the document.] Chairman Leahy. Thanks. Our following witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's migration practice team.


Divine functioned as Principal Guidance of the USA Citizenship and Migration Providers from July 2004 until November 2006, the year in which he was Performing Director, and afterwards Acting Replacement Supervisor. He has actually functioned extensively with the EB-5 program secretive method. He was chosen, as I understand, vice president of the Organization to Purchase USA, the nationwide industry association of local facilities.

Divine, we are thrilled to have you here. Please go ahead, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, PURCHASE THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thanks for having me.

At the majority of, if all 10,000 slots were utilized, it would be 1 percent of the immigration yearly to the United States. It is not near that yet, yet it is growing and obtaining toward that. Especially as USCIS, the agency that manages the program, has actually been making the policies clearer and the processes a lot more rational and clear for the individuals that are organizing financial investments and for the investors who are spending, even more people have actually been willing and able to place effort and money right into the procedure to locate great jobs and establish them, and afterwards much more capitalists have actually wanted to invest their cash and take the danger and make use of the cash to create the jobs that is the factor of the program.

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These projects do not linger for life, and USCIS recognizes that and are attempting to speed the program, speed up the process - EB5 Regional Center Program. That does not mean that they are relaxing their analysis, and, in reality, they are prepared to deny applications that are not qualifying. And they do so, as was stated

The local facility part of the program is not. It becomes part of an appropriations more info costs that was passed in 1992, and ever since that program has been extended five times for 19 years. It is time for it to be irreversible, and it needs to be done now and not nearer to the date of expiry in September.

The procedure takes an excellent while to develop a task and afterwards to get the capitalists authorized. And they do not want their money flowing with until they have been approved. And the specter of the expiry of this Regional Center Program in September is already inhibiting the development of tasks.

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I would love to clarify 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 normal EB-5 legislation that becomes part of the code. It simply is a truth that a lot of the local centers that are pooling investments have established those in areas of high unemployment or in country areas where half- million-dollar financial investments are allowed, which makes good sense.

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