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The program is put in an extremely strange and non-helpful bureaucratic place for the excitement of worldwide financial investment in the United States. We are giving away too much for too little of a financial investment.

The local facilities, with their half-million plans, essentially damaged the much more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they perform in Australia, need to be concerning producing business entities, not passive investments. It should have to do with developing real tasks, not elaborate calculations regarding the indirect development of jobs, which is currently part of the legislation.


Probably that is among the reasons that it has failed time after time to reach the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is also filled up with intermediaries, both public and private. The program has more than its share of scandals, which I will certainly get into later if anybody is interested.


This is a firm that loves to state yes to applicants, but as the table in my statement shows, USCIS officers have a lot more problem with EB-5 applications than others. I believe that is something that nobody has actually discussed a lot. EB5 Regional Center Program. There are high prices of internal rejections in this program and completely factor

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Seventh, in this program visas most likely to people who could not get them differently and to individuals whose organized financial investment is actually much less, according to the Federal Get, than the ordinary mean total assets of all American households in 2007. Allow me expand on among my monitorings.


My quote based upon the capitalists' permit applications filed 2 years after the first financial investment-- these are the solid ones that stay and are approved. This is 2009-- was that they had concerning $191 million validated-- that is my quote. USCIS does not provide the sort of information that we can make use of on this.


For every $100 of increased foreign investment that year, the EB program contributed one dime. Under a much extra shaky statistical base, the initial applications of potential immigrant investors, USCIS is informing reporters that the degree of investment in the just-concluded year was regarding $1.2 billion. Allow us accept that.

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Thank you for paying attention to me. I eagerly anticipate your remarks and concerns. [The prepared statement of David North looks like an entry for the document.] Chairman Leahy. Thank you. 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 migration practice team.

Divine offered as Principal Guidance of the USA Citizenship and Immigration Providers from July 2004 until November 2006, the year in which he was Performing Supervisor, and after that Performing Replacement Supervisor. He has worked extensively with the EB-5 program secretive technique. He was chosen, as I understand, vice head of state of the Organization to Invest in U.S.A., the nationwide sector association of regional.


STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At the majority of, if EB5 Regional Center Program all 10,000 ports were used, it would be 1 percent of the immigration yearly to the United States. It is not near that yet, but it is growing and getting towards that. Particularly as USCIS, the firm that looks after the program, has actually been making the policies clearer and the procedures much more sensible and clear for the people that are arranging investments and for the financiers who are spending, even more individuals have actually been ready and able to place effort and money right into the procedure to find great projects and develop them, and afterwards more financiers have wanted to spend their cash and take the risk and use the money to develop the tasks that is the point of the program.

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These jobs do not linger permanently, and USCIS recognizes that and are trying to speed the program, speed up the procedure - EB5 Regional Center Program. That does not suggest that they are unwinding their analysis, and, actually, they are prepared to reject applications that are not qualifying. And they do so, as was pointed out

The local facility component of the program is not. It becomes part of an appropriations bill that was enacted in 1992, and ever since that program has actually been extended five times for 19 years. It is time for it to be irreversible, and it requires to be done now and not nearer to the day of expiry in September.


The process takes a good while to function up a task and afterwards to get the capitalists accepted. And they do not want their cash streaming via up until they have actually been approved. And the specter of the expiry of this Regional Center Program in September is already inhibiting the development of projects.

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I want to make clear that the Regional Facility Program is not the like the half-million-dollar point. The idea of half a million or a million is a feature of the regular EB-5 law that becomes part of the code. It simply is a truth that many of the local centers that are merging investments have set those in locations of high joblessness or in backwoods where fifty percent- million-dollar financial investments are permitted, which makes sense.