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The program is put in an extremely strange and non-helpful bureaucratic place for the excitement of global financial investment in the United States. We are providing away too much for too little of a financial investment.


The local facilities, with their half-million plans, basically undercut the extra sensible million-dollar part 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 company entities, not passive investments. It needs to be concerning creating genuine jobs, not elaborate estimations regarding the indirect production of jobs, which is currently part of the legislation.


Maybe that is just one of the reasons why it has actually fallen short year after year to get to the legislative goal of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is also filled with middlemen, both public and personal. The program has more than its share of rumors, which I will get involved in later if anyone is interested.


This is an agency that loves to say yes to applicants, however as the table in my testament shows, USCIS officers have far more problem with EB-5 applications than others. I believe that is something that nobody has truly spoken about a lot. EB5 Regional Center Program. There are high prices of internal rejections in this program and completely factor

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Seventh, in this program visas go to people who could not obtain them any other method and to people whose scheduled financial investment is actually less, according to the Federal Book, than the average mean total assets of all American families in 2007. Allow me broaden on among my monitorings.


My estimate based on the financiers' copyright applications submitted 2 years after the first financial investment-- these are the solid ones that stay and are accepted. This is 2009-- was that they had regarding $191 million verified-- that is my quote. USCIS does not give the kind of information that we might make use of on this.


For every $100 of enhanced international investment that year, the EB program added one penny. Under a a lot more wobbly analytical base, the first applications of prospective immigrant capitalists, USCIS is telling 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 paying attention to me. I eagerly anticipate your comments and concerns. [The prepared statement of David North appears as a submission for the document.] Chairman Leahy. Thanks. Our following witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's migration practice team.




Divine worked as Chief Guidance of the USA Citizenship and Migration Providers from July 2004 until November 2006, the year in which he was Performing Supervisor, and after that Performing Deputy Director. He has worked extensively with the EB-5 program secretive practice. He was elected, as I comprehend, vice head of state of the Association to Purchase United States, the national industry organization of regional facilities.


Divine, we are delighted to have you here. Please go ahead, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE United States (IIUSA) Mr. Divine. Thanks, 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 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 agency that oversees the program, has been making the guidelines clearer and the procedures extra logical and clear for individuals that are organizing investments and for the capitalists that are spending, even more people have actually wanted and able to place initiative and cash into the procedure to find excellent projects and create them, and then a lot more financiers have wanted to spend their cash and take the danger and use the money to create the work that is the point of the program.

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These jobs do not linger permanently, and USCIS understands that and are attempting to speed the program, speed up the procedure - EB5 Regional Center Program. That does not suggest that they are unwinding their analysis, and, as a matter of fact, they are all set to deny applications that click here are not certifying. And they do so, as was stated


The local facility part of the program is not. It is part of an appropriations bill that was enacted in 1992, and ever since that program has 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 process takes a good while to work up a task and afterwards to obtain the financiers approved. And they do not desire their cash flowing with till they have actually been accepted. And the specter of the expiry of this Regional Facility Program in September is currently inhibiting the advancement of projects.

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I want to clear up that the Regional Facility Program is not the like the half-million-dollar thing. The idea of half a million or a million is a function of the routine EB-5 law that becomes part of the code. It just is a reality that the majority of the regional centers that are merging investments have established those instead of high joblessness or in country locations where fifty percent- million-dollar investments are permitted, which makes good sense.