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


The regional facilities, with their half-million plans, essentially damaged the extra reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, need to have to do with creating organization entities, not easy investments. It should be regarding creating real jobs, not clarify calculations regarding the indirect creation of work, which is now component of the regulations.


Possibly that is one of the reasons that it has actually failed year after year to get to the legal goal of 10,000 investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is as well full of intermediaries, both public and private. The program has more than its share of scandals, which I will certainly enter later on if any person is interested.


This is an agency that likes to say yes to candidates, but as the table in my testimony shows, USCIS police officers have much a lot more difficulty with EB-5 applications than others. I assume that is something that no one has actually truly spoken about much. EB5 Regional Center Program. There are high prices of interior denials in this program and completely reason

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Seventh, in this program visas most likely to people who could not get them differently and to people whose organized investment is in fact much less, according to the Federal Reserve, than the average mean web well worth of all American households in 2007. Allow me increase on among my monitorings.


My quote based upon the capitalists' permit applications filed 2 years after the initial investment-- these are the solid ones that continue to be and are authorized. This is 2009-- was that they had about $191 million validated-- that is my quote. USCIS does not give the type of data that we can utilize on this.


For every $100 of raised international investment that year, the EB program contributed one cent. Under a far more wobbly statistical base, the first applications of potential immigrant capitalists, USCIS is informing journalists that the degree of financial investment in the just-concluded year was about $1.2 billion. Let us approve that.

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Thanks for paying attention to me. I look ahead to your comments and concerns. [The prepared statement of David North looks like an entry for the document.] Chairman Leahy. Thank you. 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 immigration technique team.




Divine worked as Principal Counsel of the United States Citizenship and Immigration Providers from July 2004 till November 2006, the year in which he was Acting Supervisor, and after that Performing Replacement Director. He has actually worked thoroughly with the EB-5 program in personal practice. He was elected, as I comprehend, vice head of state of the Organization to Invest in U.S.A., the national sector association of regional.


Divine, we are pleased to have you below. Please proceed, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, PURCHASE THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At a lot of, if all 10,000 slots were utilized, it would be 1 percent of the immigration annually to the United States. It is not near that yet, however it is growing and obtaining towards that. Specifically as USCIS, the company that oversees the program, has been making the guidelines clearer and the procedures a lot more rational and clear for individuals that are arranging investments and for the financiers that are spending, even more people have actually agreed and able to place initiative and cash right into the process to discover good projects and create them, and then a lot more investors have wanted to invest their cash and take the danger and make use of the cash to develop the work that is the point of the program.

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These projects do not linger permanently, and USCIS comprehends that and are attempting to speed the website program, speed up the procedure - EB5 Regional Center Program. That does not mean that they are unwinding their analysis, and, as a matter of fact, they are ready to deny applications that are not qualifying. And they do so, as was stated


The regional center part of the program is not. It belongs to an appropriations bill that was enacted in 1992, and considering that then that program has actually been extended 5 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 date of expiry in September.


The process takes an excellent while to work up a project and afterwards to get the financiers approved. And they do not want their money streaming with till they have been accepted. And the specter of the expiration of this Regional Facility Program in September is currently inhibiting the advancement of jobs.

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I would certainly such as to make clear that the Regional Center Program is not the like the half-million-dollar point. The idea of half a million or a million is a function of the normal EB-5 law that becomes part of the code. It just is a reality that many of the local centers that are merging financial investments have actually set those in places of high joblessness or in backwoods where fifty percent- million-dollar financial investments are enabled, and that makes good sense.