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The program is put in a really odd and non-helpful bureaucratic place for the excitement of global investment in the United States. We are providing away also much for also small of an investment.


The regional facilities, with their half-million plans, basically undercut the a lot more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, must have to do with creating organization entities, not passive financial investments. It needs to have to do with creating actual jobs, not clarify computations regarding the indirect production of tasks, which is now part of the regulation.


Possibly that is one of the reasons that it has failed every year to reach the legal objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is too loaded with middlemen, both public and personal. The program has greater than its share of detractions, which I will certainly get involved in later if any person is interested.


This is a company that loves to claim yes to applicants, but as the table in my statement reveals, USCIS police officers have a lot more trouble with EB-5 applications than others. I think that is something that nobody has truly spoken about a lot. EB5 Regional Center Program. There are high prices of inner rejections in this program and forever factor

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Seventh, in this program visas go to individuals that can not get them differently and to individuals whose scheduled financial investment is in fact much less, according to the Federal Reserve, than the average mean total assets of all American family members in 2007. Allow me expand on one of my observations.


My quote based upon the financiers' eco-friendly card applications submitted 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 regarding $191 million confirmed-- that is my price quote. USCIS does not supply the sort of information that we could make use of on this.


So for every $100 of increased international investment that year, the EB program added one cent. Under a a lot more unsteady statistical base, the initial applications of potential immigrant investors, USCIS is telling journalists that the degree of financial investment in the just-concluded year had to do with $1.2 billion. Let us approve that.

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Thanks for click site paying attention to me. I eagerly anticipate your comments and questions. [The ready declaration of David North appears as a submission for the record.] Chairman Leahy. Thank you. Our next witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's migration practice team.




Divine functioned as Chief Advice of the USA Citizenship and Immigration Solutions from July 2004 until November 2006, the year in which he was Acting Director, and after that Acting Replacement Supervisor. He has actually worked extensively with the EB-5 program secretive practice. He was chosen, as I understand, vice head of state of the Association to Invest in USA, the national industry organization of local.


Divine, we are happy to have you here. Please go ahead, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, PURCHASE THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At a lot of, if all 10,000 slots were made use of, it would be 1 percent of the immigration each year to the USA. It is not near that yet, but it is growing and obtaining toward that. Particularly as USCIS, the firm that looks after the program, has been making the regulations more clear and the procedures a lot more logical and clear for individuals who are organizing investments and for the financiers who are investing, more individuals have been willing and able to place effort and cash into the procedure to locate great projects and establish them, and afterwards more capitalists have wanted to invest their money and take the threat click for source and make use of the money to create the jobs that is the point of the program.

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These projects do not wait around for life, and USCIS comprehends that and are attempting to speed the program, speed up the process - EB5 Regional Center Program. That does not suggest that they are unwinding their analysis, and, in truth, they prepare to deny applications that are not certifying. And they do so, as was mentioned


The regional center part of the program is not. It belongs to an appropriations bill that was established in 1992, and given that then that program has been expanded five times for 19 years. It is time for it to be irreversible, and it needs to be done currently and not nearer to the day of expiration in September.


The process takes an excellent while to resource develop a task and after that to get the financiers accepted. And they do not want their cash flowing through until they have been approved. And the specter of the expiry of this Regional Facility Program in September is currently inhibiting the growth of tasks.

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I would certainly like to make clear that the Regional Facility Program is not the very same as the half-million-dollar point. The idea of half a million or a million is a feature of the regular EB-5 regulation that is component of the code. It just is a truth that most of the regional centers that are merging financial investments have established those in locations of high joblessness or in rural locations where fifty percent- million-dollar financial investments are enabled, and that makes sense.