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The program is placed in a really odd and non-helpful administrative place for the excitement of worldwide investment in the United States. We are giving away also much for also tiny of a financial investment.


The regional facilities, with their half-million plans, basically damaged the extra sensible million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, must have to do with producing company entities, not passive investments. It should have to do with producing actual tasks, not specify calculations concerning the indirect production of work, which is currently component of the legislation.


Possibly that is among the reasons that it has fallen short time after time to get to the legal objective of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is also loaded with middlemen, both public and exclusive. The program has more than its share of scandals, which I will certainly get right into later on if anybody is interested.


This is a company that likes to say yes to candidates, yet as the table in my statement reveals, USCIS police officers have much more difficulty with EB-5 applications than others. I believe that is something that no one has actually really spoken about a lot. EB5 Regional Center Program. There are high prices of interior denials in this program and forever factor

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Seventh, in this program visas go to individuals that might not obtain them any type of various other means and to individuals whose scheduled financial investment is actually much less, according to the Federal Book, than the typical mean total assets of all American households in 2007. Let me increase on one of my observations.


My price quote based on the financiers' environment-friendly card applications submitted 2 years after the first financial investment-- these are the solid ones that continue to be and are approved. This is 2009-- was that they had concerning $191 million confirmed-- that is my estimate. USCIS does not offer the type of data that we could utilize on this.


For every $100 of increased foreign investment that year, the EB program added one cent. Under a much more wobbly analytical base, the first applications of would-be immigrant investors, USCIS is telling reporters that the degree of financial investment in the just-concluded year was about $1.2 billion. Let us accept that.

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Thanks for paying attention to me. I expect your comments and questions. [The ready statement of David North looks like a submission for the record.] Chairman Leahy. Thank you. Our following witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's immigration method team.




Divine served as Principal Counsel of the USA Citizenship and Immigration Services from July 2004 until November 2006, the year in which he was Performing Director, and afterwards Performing Deputy Director. He has functioned thoroughly with the EB-5 program secretive technique. He was chosen, as click over here now I comprehend, vice head of state of the Organization to Buy USA, the national market association of local facilities.


Divine, we are delighted their website to have you below. Please proceed, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At the majority of, if all 10,000 slots were utilized, it would certainly be 1 percent of the immigration each year to the United States. It is not near that yet, yet it is growing and obtaining toward that. Especially as USCIS, the agency that looks after the program, has actually been making the regulations clearer and the processes a lot more sensible and clear for individuals who are arranging investments and for the investors that are spending, even more people have been willing and able to place effort and money into the procedure to discover excellent tasks and establish them, and afterwards much more financiers have actually been prepared to spend their money and take the threat and use the cash to develop the jobs that is the point of the program.

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These projects do not wait about for life, and USCIS understands that and are trying to speed up the program, speed the process - EB5 Regional Center Program. That does not suggest that they are unwinding their scrutiny, and, as a matter of fact, they prepare to reject applications that are not certifying. And they do so, as was discussed


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 click for more info program has been prolonged five 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 process takes a good while to develop a project and after that to get the investors authorized. And they do not want their cash flowing with until they have been approved. And the specter of the expiration of this Regional Center Program in September is already dissuading the advancement of jobs.

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I wish to clear up that the Regional Facility Program is not the like the half-million-dollar point. The concept of half a million or a million is a function of the regular EB-5 legislation that belongs to the code. It simply is a reality that a lot of the regional facilities that are pooling financial investments have set those in locations of high joblessness or in backwoods where half- million-dollar financial investments are enabled, and that makes feeling.