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The program is placed in an extremely odd and non-helpful governmental location for the stimulation of international financial investment in the United States. We are offering away also much for too little of an investment.


The local facilities, with their half-million plans, essentially damaged the much more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they carry out in Australia, should have to do with developing company entities, not passive investments. It should be concerning developing genuine tasks, not specify computations about the indirect development of jobs, which is currently component of the regulations.


Maybe that is one of the reasons that it has fallen short time after time to reach the legal objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is also loaded with middlemen, both public and exclusive. The program has even more than its share of detractions, which I will obtain into later on if anybody is interested.


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

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Seventh, in this program visas most likely to people that can not obtain them differently and to individuals whose organized investment is in fact less, according to the Federal Reserve, than the typical mean total assets of all American households in 2007. Allow me broaden on one of my monitorings.


My quote based on the capitalists' permit applications submitted 2 years after the initial investment-- these are the solid ones that remain and are approved. This is 2009-- was that they had regarding $191 million confirmed-- that is my quote. USCIS does not give the sort of information that we could utilize on this.


So for every $100 of enhanced international investment that year, the EB program contributed one penny. Under a a lot more unsteady statistical base, the initial applications of prospective immigrant investors, USCIS is informing reporters that the level of financial investment in the just-concluded year was regarding $1.2 billion. Allow us accept that.

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Thanks for listening to me. I look ahead to your remarks and concerns. [The prepared declaration of David North looks like an entry for the record.] Chairman Leahy. Thanks. Our next witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's migration technique group.




Divine worked as Chief Advice of the United States Citizenship and Migration Providers from July 2004 up until November 2006, the year in which he was Acting Supervisor, and after that Acting Deputy Director. EB5 Regional Center Program He has worked extensively with the EB-5 program in private practice. He was elected, as I comprehend, vice president of the Organization to Purchase United States, the nationwide market organization of local centers.


Divine, we are happy to have you below. Please go on, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, PURCHASE THE USA (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At most, 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, but it is expanding and getting towards that. Specifically as USCIS, the firm that looks after the program, has been making the policies more clear and the procedures a lot more rational and clear for the individuals that are organizing investments and for the capitalists who are spending, even more people have been ready and able to place initiative and cash into the process to discover good tasks and develop them, and after that a lot more investors have agreed to spend their money and take the threat and make use of the cash to produce the jobs that is the factor of the program.

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These jobs do not linger permanently, and USCIS comprehends that and are attempting to speed the program, speed up the procedure - EB5 Regional Center Program. That does not imply that they are relaxing their scrutiny, and, in reality, they prepare to reject applications that are not qualifying. And they do so, as was stated


The regional center part of the program is not. It is component of an appropriations expense that was established in 1992, and ever since that program has actually been prolonged five times for 19 years. It is time for it to be long-term, and it requires to be done now and not nearer to the date of expiration in September.


The process takes an excellent while to develop a job and afterwards to obtain the capitalists accepted. And they do not desire their cash moving with till they have been authorized. And the specter of the expiry of this Regional Center Program in September is already discouraging the advancement of tasks.

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I want to clear up that the Regional Center Program is not the like the half-million-dollar thing. The concept of half a million or a million is a feature of the routine EB-5 regulation that is component of the code. It simply is a reality that a lot of the regional facilities that are merging investments have established those in places of high unemployment or in rural areas where half- million-dollar financial investments are enabled, and that makes good sense.