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The program is positioned in an extremely strange and non-helpful governmental location for the stimulation of global investment in the United States. We are providing away as well much for also little of an investment.


The local centers, with their half-million schemes, essentially undercut the much more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they do in Australia, should be concerning producing company entities, not easy investments. It needs to be about creating actual jobs, not elaborate computations regarding the indirect creation of jobs, which is now part of the regulation.


Perhaps that is one of the reasons why it has failed every year to reach the legal objective of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is too filled with intermediaries, both public and exclusive. The program has even more than its share of detractions, which I will obtain right into later if anybody is interested.


This is an agency that enjoys to claim yes to applicants, but as the table in my statement reveals, USCIS police officers have a lot more trouble with EB-5 applications than others. I assume that is something that no one has really discussed much. EB5 Regional Center Program. There are high prices of inner rejections in this program and completely reason

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Seventh, in this program visas most likely to people who could not obtain them differently and to individuals whose scheduled financial investment is really less, according to the Federal Book, than the average mean total assets of all American households in 2007. Let me increase on one of my observations.


My estimate based upon the financiers' copyright applications filed 2 years after the initial 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 price quote. USCIS does not provide the type of data that we can use on this.


So for every $100 of boosted international investment that year, the EB program contributed one penny. Under a far more unsteady analytical base, the first applications of would-be immigrant investors, USCIS is informing journalists that the level of financial investment in the just-concluded year was concerning $1.2 billion. Allow us approve that.

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Thanks for paying attention to me. I look onward to your comments and questions. [The prepared declaration of David North looks like a submission 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 firm's immigration practice team.




Divine worked as Principal Advise of the United States Citizenship and Immigration Services from July 2004 until November 2006, the year in which he was Performing Supervisor, and after that Acting Replacement Director. He has actually functioned thoroughly with the EB-5 program secretive technique. He was elected, as I understand, vice head of state of the Association to Spend in U.S.A., the nationwide market organization of regional facilities.


DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others.


At the majority of, if all 10,000 ports were utilized, it would certainly be 1 percent of the immigration annually to the USA. It is not near that yet, yet it is growing and obtaining toward that. Especially as USCIS, the company that looks after the program, has actually been making the regulations clearer and the procedures more rational and clear for individuals who are organizing investments and for the investors that are investing, more individuals have been ready and able to put effort and cash into the procedure to discover excellent projects and establish them, and after that more financiers have wanted to invest their cash and take the risk and use the money to create the jobs that is the point of the program.

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These tasks do not linger for life, and USCIS comprehends that and are attempting to speed the program, speed the procedure - EB5 Regional Center Program. That does not mean that they are unwinding their scrutiny, and, actually, they are ready to deny applications that are not qualifying. And they do so, as was discussed


The regional facility component of the program is not. It belongs to an appropriations expense that was enacted in 1992, and considering that then that program has actually been prolonged 5 times for 19 years. It is time for it to be permanent, and it requires to be done currently and not nearer to the date of expiration in September.


The procedure takes a great while to work up a project and afterwards to obtain the investors accepted. And they do not desire their money streaming through up until they have actually been accepted. And the specter of the expiry of this Regional Center Program in September is already discouraging the development of tasks.

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I would like to clear up that the Regional Facility Program is not the very same as the half-million-dollar thing. The concept of half a million or a million is a function of the normal EB-5 regulation that becomes part of the code. It simply is a truth that a lot of the regional facilities that are pooling investments have set those in locations of high joblessness or in backwoods where half- million-dollar investments here are enabled, and that makes good sense.