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The program is placed in a really strange and non-helpful administrative location for the stimulation of international investment in the United States. We are offering away too much for as well little of a financial investment.


The regional facilities, with their half-million plans, essentially undercut 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, should be concerning developing service entities, not easy financial investments. It should be concerning creating real work, not clarify computations regarding the indirect creation of jobs, which is now part of the regulations.


Probably that is among the reasons why it has actually failed time after time to reach the legal objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is also filled with intermediaries, both public and exclusive. The program has greater than its share of scandals, which I will certainly enter into later if anyone is interested.


This is an agency that likes to state yes to candidates, yet as the table in my testimony shows, USCIS policemans have a lot more difficulty with EB-5 applications than others. I believe that is something that no one has really spoken about much. EB5 Regional Center Program. There are high prices of inner denials in this program and completely factor

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Seventh, in this program visas go to people that can not obtain them any kind of various other method and to individuals whose scheduled investment is in fact much less, according to the Federal Get, than the typical mean total assets of all American families in 2007. Allow me broaden on one of my monitorings.


My estimate based upon the capitalists' eco-friendly card applications filed 2 years after the very first financial investment-- these are the solid ones that remain and are accepted. This is 2009-- was that they had regarding $191 million validated-- that is my quote. USCIS does not give the kind of data that we can make use of on this.


So for each $100 of boosted international financial investment that year, the EB program added one cent. Under a much more unsteady analytical base, the first applications of prospective immigrant capitalists, USCIS is informing reporters that the level of investment in the just-concluded year was concerning $1.2 billion. Allow us approve that.

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Thank you for paying attention to me. I eagerly anticipate your comments and inquiries. [The ready statement of David North looks like an entry for the document.] Chairman Leahy. Thanks. Our next witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's immigration technique group.




Divine offered as Chief Advice of the United States Citizenship and Immigration Solutions from July 2004 till November 2006, the year in which he was Acting Supervisor, and after that Acting Replacement Director. He has functioned thoroughly with the EB-5 program in private method. He was chosen, as I understand, vice president of the Organization to Invest in USA, the nationwide industry organization of local facilities.


Divine, we are delighted to have you here. Please go in advance, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY THE USA (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At many, if all 10,000 slots were made use of, it would certainly be 1 percent of the migration yearly to the United States. It is not near that yet, however it is expanding and obtaining toward that. Specifically as USCIS, the agency that oversees the program, has been making the guidelines more clear and the procedures more sensible and clear for individuals that are arranging investments and for the investors who are spending, more people have wanted and able to place effort and cash into the process to discover excellent tasks and create them, and after that a lot more investors have been ready to invest their cash and take the risk and here utilize the cash to produce the tasks that is the point of the program.

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These projects do not linger forever, and USCIS comprehends that and are attempting to speed up the program, speed the process - EB5 Regional Center Program. That does not indicate that they are relaxing their analysis, and, as a matter of fact, they are prepared to deny applications that are not certifying. And they do so, as was stated


The regional center part of the program is not. It becomes part of an appropriations bill that was established in 1992, and considering that then that program has actually been extended 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 day of expiration in September.


The procedure takes a good while to work up a job and afterwards to get the capitalists approved. And they do not desire their money moving via until they have actually been accepted. And the specter of the expiry of this Regional Facility Program in September is currently dissuading the development of jobs.

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I would such as to clarify that the Regional Center Program is not the exact same as the half-million-dollar thing. The idea of half a million or a million is a function of the regular EB-5 law that is component of the code. It simply is a reality that a lot of the local centers that are merging financial investments have set those instead of high joblessness or in backwoods where fifty percent- million-dollar investments are permitted, and that makes good sense.