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The program is put in an extremely weird and non-helpful bureaucratic place for the excitement of international financial investment in the United States. We are providing away also much for too small of an investment.

The local centers, with their half-million plans, basically undercut the extra practical million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they carry out in Australia, should have to do with producing service entities, not easy investments. It needs to have to do with developing real work, not specify calculations about the indirect creation of jobs, which is now part of the regulations.


Perhaps that is just one of the reasons that it has actually fallen short year after year to reach the legislative goal of 10,000 investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is too loaded with intermediaries, both public and personal. The program has greater than its share of rumors, which I will certainly enter later if anyone is interested.


This is a company that loves to claim yes to candidates, yet as the table in my testimony reveals, USCIS policemans have far more difficulty with EB-5 applications than others. I believe that is something that nobody has actually really discussed a lot. EB5 Regional Center Program. There are high prices of interior denials in this program and completely factor

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Seventh, in this program visas go to people that can not get them otherwise and to people whose scheduled investment is in fact less, according to the Federal Book, than the average mean internet worth of all American family members in 2007. Let me increase on one of my monitorings.


My quote based on the financiers' eco-friendly card applications submitted 2 years after the very first investment-- these are the strong ones that remain and are approved. This is 2009-- was that they had concerning $191 million confirmed-- that is my quote. USCIS does not supply the kind of data that we can utilize on this.


So for each $100 of increased international financial investment that year, the EB program added one dime. Under a far more wobbly statistical base, the preliminary applications of prospective immigrant capitalists, USCIS is telling journalists that the degree of financial investment in the just-concluded year had to do with $1.2 billion. Let us accept that.

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Thank you for paying attention to me. I eagerly anticipate your remarks and concerns. [The ready declaration of David North shows up as an entry for the document.] Chairman Leahy. Thanks. Our next 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 group.

Divine functioned as Chief Advise of the United States Citizenship and Immigration Providers from July 2004 until November 2006, the year in which he was Performing Supervisor, and afterwards Acting Replacement Supervisor. He has functioned thoroughly with the EB-5 program in private method. He was chosen, as I understand, vice head of state of the Organization to Purchase United States, the national sector association of regional centers.


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


At a lot of, if all 10,000 ports were made use of, it would certainly be 1 percent of the migration yearly to the USA. It is not near that yet, yet it is growing and getting toward that. Specifically as USCIS, the firm that manages the program, has actually been making the regulations clearer and the processes much more sensible and clear for website individuals that are arranging financial investments and for the financiers that are investing, more individuals have wanted and able to put initiative and cash into the process to find excellent tasks and develop them, and then more capitalists have actually wanted to spend their cash and take the danger and make use of the cash to create the tasks that is the factor of the program.

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These tasks do not linger forever, and USCIS recognizes that and are trying to speed up the program, speed the procedure - EB5 Regional Center Program. That does not suggest that they are unwinding their examination, and, actually, they prepare to deny applications that are not certifying. And they do so, as was discussed

The local center component of the program is not. It is component of an appropriations costs that was enacted in 1992, and because then that program has been prolonged five times for 19 years. It is time for it to be long-term, and it requires to be done currently and not nearer to the day of expiration in September.


The procedure takes an excellent while to work up a project and then to get the capitalists approved. And they do not desire their money flowing with up until they have been authorized. And the specter of the expiration of this Regional Center Program in September is already discouraging the growth of tasks.

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I want to make clear that the Regional Facility Program is not the exact same as the half-million-dollar thing. The concept of half a million or a million is a feature of the normal EB-5 regulation that belongs to the code. It simply is a truth that most of the local centers that are merging financial investments have established those instead of high joblessness or in rural locations where half- million-dollar financial investments are enabled, which makes good sense.