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The program is put in a very weird and non-helpful bureaucratic place for the excitement of international financial investment in the United States. We are offering away as well much for also tiny of a financial investment.


The local facilities, with their half-million systems, basically damaged the more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they perform in Australia, need to have to do with developing company entities, not passive financial investments. It needs to be regarding creating actual jobs, not specify computations concerning the indirect creation of jobs, which is now part of the regulation.


Possibly that is one of the reasons that it has failed every year to reach the legislative objective 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 exclusive. The program has more than its share of detractions, which I will certainly enter into later if any person is interested.


This is an agency that loves to state yes to applicants, but as the table in my statement shows, USCIS policemans have a lot more difficulty with EB-5 applications than others. I assume that is something that no one has actually chatted around a lot. EB5 Regional Center Program. There are high prices of interior rejections in this program and completely reason

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Seventh, in this program visas most likely to people that might not obtain them any kind of other method and to individuals whose scheduled financial investment is in fact much less, according to the Federal Book, than the ordinary mean total assets of all American households in 2007. Allow me increase on one of my monitorings.


My quote based upon the financiers' permit applications filed 2 years after the very first investment-- these are the solid ones that continue to be and are authorized. This is 2009-- was that they had regarding $191 million verified-- that is my quote. USCIS does not supply the kind of data that we might make use of on this.


So for every $100 of enhanced international investment that year, the EB program contributed one cent. Under a a lot more wobbly analytical base, the first applications of prospective immigrant investors, USCIS is telling journalists that the degree of investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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Thank you for listening to me. I eagerly anticipate your comments and inquiries. [The ready Source declaration 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 firm's migration technique team.




Divine acted as Principal Guidance of the United States Citizenship and Immigration Solutions from July 2004 until November 2006, the year in which he was Acting Supervisor, and after that Performing Deputy Supervisor. He has actually functioned thoroughly with the EB-5 program secretive method. He was chosen, as I understand, vice president of the Association to Spend in USA, the national sector association of regional facilities.


Divine, we are pleased to have you here. Please go on, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, PURCHASE THE U.S.A. (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At a lot of, if all 10,000 slots were used, it would certainly be 1 percent of the immigration yearly to the United States. It is not near that yet, however it is growing and getting towards that. Especially as USCIS, the agency that supervises the program, has been making the guidelines clearer and the processes extra reasonable and clear for the individuals that are arranging financial investments and for the financiers who are spending, even more individuals have been prepared and able to place initiative and money right into the procedure to discover excellent projects and develop them, and afterwards much more capitalists have agreed to spend their cash and take the right here threat and use the cash to create the jobs that is the factor of the program.

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These tasks do not wait around for life, and USCIS recognizes that and are trying to speed the program, speed the procedure - EB5 Regional Center Program. That does not mean that they are relaxing their scrutiny, and, as a matter of fact, they are prepared to reject applications that are not qualifying. And they do so, as was mentioned


The local center part of the program is not. It is part of an appropriations expense that was passed in 1992, and since then that program has actually been prolonged 5 times for 19 years. It is time for it to be permanent, and it my website needs to be done now and not nearer to the date of expiration in September.


The procedure takes a good while to function up a project and after that to obtain the financiers approved. And they do not want their money moving with until they have been authorized. And the specter of the expiry of this Regional Center Program in September is currently inhibiting the development of jobs.

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I want to clarify that the Regional Center Program is not the like the half-million-dollar point. The concept of half a million or a million is a feature of the routine EB-5 legislation that becomes part of the code. It simply is a reality that most of the regional facilities that are merging investments have actually set those instead of high unemployment or in rural areas where half- million-dollar investments are allowed, and that makes good sense.