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The program is positioned in an extremely strange and non-helpful administrative location for the stimulation of global financial investment in the United States. We are providing away also much for also tiny of an investment.


The local facilities, with their half-million schemes, basically damaged the more practical million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they perform in Australia, should be regarding creating organization entities, not easy investments. It should be about developing actual tasks, not specify estimations about the indirect development of tasks, which is now part of the regulations.


Maybe that is just one of the reasons it has actually fallen short time after time to get to the legal objective of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is too full of middlemen, both public and private. The program has even more than its share of detractions, which I will certainly enter later if anybody is interested.


This is an agency that enjoys to state yes to applicants, yet as the table in my statement reveals, USCIS policemans have a lot more trouble with EB-5 applications than others. I assume that is something that no one has actually truly discussed a lot. 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 individuals that might not get them differently and to people whose scheduled financial investment is really much less, according to the Federal Reserve, than the ordinary mean net well worth of all American households in 2007. Allow me increase on among my observations.


My estimate based upon the capitalists' environment-friendly card applications filed 2 years after the first financial investment-- these are the solid ones that stay and are accepted. This is 2009-- was that they had about $191 million verified-- that is my quote. USCIS does not offer the type of information that we might make use of on this.


So for every single $100 of boosted international investment that year, the EB program added one dime. Under a a lot more wobbly analytical base, the preliminary applications of prospective immigrant financiers, USCIS is telling reporters that the level of financial investment in the just-concluded year was about $1.2 billion. Let us accept that.

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Thank you for paying attention to me. I look forward to your comments and inquiries. [The prepared statement of David North appears as a submission for the record.] Chairman Leahy. Thanks. 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 practice group.




Divine functioned as Principal Counsel of the United States Citizenship and Migration Services from July 2004 until November 2006, the year in which he was Acting Supervisor, and then Acting Deputy Director. He has functioned extensively with the EB-5 program in personal practice. He was chosen, as I understand, vice president of the Organization to Spend anchor in U.S.A., the national market organization of local.


Divine, we are pleased to have you below. Please go in advance, sir. STATEMENT 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, Legislator Grassley, and others. Thanks for having me.


At the majority of, if all 10,000 slots were used, it would certainly be 1 percent of the migration annually to the USA. It is not near that yet, however it is growing and getting toward that. Especially as USCIS, the company that looks after the program, has actually been making the regulations more clear and the procedures extra sensible and clear for the individuals that are arranging investments and for the capitalists that are investing, more people have agreed and able to put initiative and cash right into the process to discover good projects and develop them, and afterwards extra capitalists have actually wanted to spend their cash and take the danger and use the money to produce the tasks that is the point of the program.

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These tasks do not wait about for life, and USCIS understands that and are attempting to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not mean that they are relaxing their examination, and, as a matter of fact, they prepare to reject applications that are not certifying. And they do so, as was mentioned


The regional facility component of the program is not. It is part of an appropriations bill that was enacted in 1992, and since then that program has been extended 5 times for 19 years. It is time for it to be permanent, and it needs to be done now and not nearer to the day of expiry in September.


The process takes an excellent while to develop a job and after that to get the financiers authorized. And they do not desire their cash moving via until they have been authorized. 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 wish to clarify that the Regional Facility Program is not the like the read more half-million-dollar thing. The concept of half a million or a million is a function of the regular EB-5 regulation that becomes part of the code. It just is a fact have a peek at this website that the majority of the regional centers that are pooling financial investments have actually set those instead of high unemployment or in backwoods where half- million-dollar investments are enabled, which makes sense.