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The program is placed in a really weird and non-helpful administrative place for the excitement of international investment in the United States. We are providing away too much for as well small of an investment.


The regional facilities, with their half-million schemes, basically damaged the much more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, should be about producing organization entities, not passive investments. It ought to have to do with developing genuine jobs, not specify computations concerning the indirect creation of work, which is currently part of the regulation.


Perhaps that is among the reasons that it has actually failed every year to reach the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is also loaded with intermediaries, both public and private. The program has more than its share of detractions, which I will enter later if any person is interested.


This is a company that likes to claim yes to applicants, however as the table in my testament reveals, USCIS officers have far more trouble with EB-5 applications than others. I think that is something that nobody has actually actually discussed much. EB5 Regional Center Program. There are high rates of inner rejections in this program and permanently factor

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Seventh, in this program visas go to individuals that can not get them differently and to people whose organized investment is actually less, according to the Federal Get, than the average mean total assets of all American households in 2007. Let me expand on among my observations.


My estimate based on the financiers' environment-friendly card applications filed 2 years after the very first financial investment-- these are the strong ones that remain and are accepted. This is 2009-- was that they had concerning $191 million confirmed-- that is my price quote. USCIS does not provide the type of information that we could use on this.


For every $100 of raised foreign investment that year, the EB program contributed one dime. Under a much more unsteady analytical base, the preliminary applications of potential immigrant investors, USCIS is telling journalists that the degree of investment in the just-concluded year had to do with $1.2 billion. Let us approve that.

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Thanks for paying attention to me. I expect your remarks and inquiries. [The ready declaration of David North shows up as an entry for the document.] Chairman Leahy. Thanks. Our next witness is Robert Divine. He is here an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's migration technique team.




Divine acted as Principal Advice of the United States Citizenship and Immigration Solutions from July 2004 up 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 practice. He was elected, as I comprehend, vice head of state of the Organization to Invest in United States, the national market organization of regional.


Divine, we are delighted to have you right here. Please go on, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY 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 migration every year to the United States. It is not near that yet, however it is growing and getting toward that. Specifically as USCIS, the firm that supervises the program, has actually been making the guidelines more clear and the processes more logical and clear for the people who are organizing financial investments and for the investors that are spending, more individuals have actually wanted and able to place initiative and money into the process to find great projects and establish them, and after that much more capitalists have agreed to invest their money and take the threat and utilize the cash to develop the jobs that is the point of the program.

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These jobs do not linger permanently, and USCIS comprehends that and are trying to speed the program, speed up the process - EB5 Regional Center Program. That does not mean that they are unwinding their scrutiny, and, actually, they are prepared to refute applications that are not certifying. And they do so, as was mentioned


The local center component of the program is not. It is component of an appropriations bill 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 irreversible, and it requires to be done now and not nearer to the day of expiry in September.


The procedure takes an excellent while to develop a job and after that to obtain the investors authorized. And they do not desire their money streaming via until they have been approved. And the specter of the expiry of this Regional Center Program in September is currently inhibiting the growth of tasks.

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I want to clarify that the Regional Facility Program is not the like the half-million-dollar thing. The concept of half a million or a million is a feature of the regular EB-5 legislation that becomes part of the code. It simply is a reality that the majority of the regional facilities that are pooling investments have established those in locations of high unemployment or in country locations where fifty percent- million-dollar financial investments are permitted, which makes good sense.