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The program is positioned in a very odd and non-helpful administrative location for the excitement of worldwide financial investment in the United States. We are offering away as well much for as well little of a financial investment.


The regional facilities, with their half-million systems, essentially damaged the more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they carry out in Australia, must be concerning producing organization entities, not passive financial investments. It must be regarding developing actual work, not specify estimations regarding the indirect creation of work, which is currently part of the legislation.


Possibly that is just one of the reasons it has actually failed year after year to reach the legislative goal of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is too loaded with middlemen, both public and exclusive. The program has even more than its share of rumors, which I will obtain into later if anyone is interested.


This is an agency that loves to say yes to applicants, yet as the table in my testament reveals, USCIS policemans have much a lot more trouble with EB-5 applications than others. I think that is something that no one has actually chatted about a lot. EB5 Regional Center Program. There are high rates of interior rejections in this program and permanently reason

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Seventh, in this program visas go to individuals who can not get them differently and to individuals whose planned financial investment is in fact much less, according to the Federal Get, than the ordinary mean total assets of all American families in 2007. Let me expand on among my monitorings.


My price quote based on the capitalists' permit applications filed 2 years after the initial financial investment-- these are the solid ones that continue to be and are accepted. This is 2009-- was that they had about $191 million validated-- that is my estimate. USCIS does not give the type of data that we could use on this.


For every $100 of boosted international financial investment that year, the EB program added one cent. Under a much a lot more wobbly analytical base, the preliminary applications of prospective immigrant investors, USCIS is informing journalists that the level of financial investment in the just-concluded year had to do with $1.2 billion. Let us accept that.

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Thank you for paying attention to me. I look ahead to your comments and concerns. [The ready statement of David North shows up as an entry 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 migration practice team.




Divine worked as Chief Advice of the United States Citizenship and Migration Providers from July 2004 until November 2006, the year in which he was Acting Supervisor, and afterwards Performing Replacement Director. He has functioned thoroughly with the EB-5 program secretive technique. He was elected, as I understand, vice president of the Organization to Spend in USA, the national market association of regional.


Divine, we are thrilled to have you below. Please go ahead, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, 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. Thank you for having me.


At many, if all 10,000 ports were made use of, it would certainly be 1 percent of the immigration every year to the United States. It is not near that yet, however it is growing and obtaining towards that. Specifically as USCIS, the firm that supervises the program, has been making the regulations clearer and the processes more rational and clear for individuals that are organizing financial investments and for the investors who are spending, even more individuals have been willing and able to place effort and money into the process to locate good jobs and create them, and after that much more capitalists have been ready to spend their money and take the threat and make use of the cash to produce the jobs that is the point of the program.

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These projects do not wait around forever, and USCIS understands that and are attempting to speed the program, speed the procedure - EB5 Regional Center Program. That does not indicate that they are relaxing their scrutiny, and, as a matter of fact, they prepare to reject applications that are not certifying. And they do so, as was stated


The regional center component of the program is not. It belongs to an appropriations expense that was enacted in 1992, and given that then that program has been prolonged 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 date of expiry in September.


The process takes a great while to develop a job and afterwards to obtain the investors approved. And they do not desire their cash flowing through until they have actually been approved. And the specter of the expiry of this Regional Center Program in September is currently discouraging the growth of jobs.

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I would such as to clarify that the Regional Center Program is not the same as the half-million-dollar point. The idea of half a million or a million is a function of the regular EB-5 legislation that becomes part of the code. It simply is a truth that the majority of the local centers that are get more info merging financial investments have actually established those instead of high unemployment or in backwoods where half- million-dollar investments are allowed, and that makes good sense.