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The program is positioned in an extremely strange and non-helpful bureaucratic area for the stimulation of worldwide financial investment in the United States. We are giving away as well much for also tiny of a financial investment.


The regional centers, with their half-million plans, basically undercut the extra reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they do in Australia, need to be regarding producing company entities, not passive financial investments. It should have to do with developing actual work, not specify calculations regarding the indirect production of tasks, which is now part of the regulations.


Probably that is one of the reasons it has actually stopped working time after time to reach the legislative goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is too loaded with intermediaries, both public and exclusive. The program has greater than its share of rumors, which I will certainly obtain into later on if any person is interested.


This is a company that enjoys to say yes to applicants, but as the table in my statement shows, USCIS policemans have a lot more problem with EB-5 applications than others. I believe that is something that nobody has actually really chatted about a lot. EB5 Regional Center Program. There are high prices of inner rejections in this program and permanently factor

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Seventh, in this program visas most likely to people who might not get them any kind of various other way and to people whose planned investment is actually less, according to the Federal Get, than the ordinary mean net worth of all American households in 2007. Allow me increase on among my observations.


My quote based on the investors' permit applications filed 2 years after the very first financial investment-- these are the solid ones that stay and are authorized. This is 2009-- was that they had regarding $191 million validated-- that is my price quote. USCIS does not give the sort of information that we could utilize on this.


So for every $100 of raised international investment that year, the EB program contributed one penny. Under a far more unsteady statistical base, the first applications of would-be immigrant investors, USCIS is informing reporters that the level of financial investment in the just-concluded year was regarding $1.2 billion. Let us accept that.

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Thank you for visit homepage listening to me. I eagerly anticipate your comments and questions. [The ready statement of David North looks like an entry for the document.] Chairman Leahy. Thank you. Our next witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's immigration technique team.




Divine offered as Chief Advise of the United States Citizenship and Immigration Solutions from July 2004 till November 2006, the year in which he was Performing Director, and then Acting Deputy Supervisor. He has functioned extensively with the EB-5 program secretive method. He was elected, as I understand, vice head of state of the Association to Buy U.S.A., the national market association of local centers.


Divine, we are pleased to have you below. Please proceed, 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 utilized, it would certainly be 1 percent of the immigration each year to the United States. It is not near that yet, however it is growing and getting towards that. Specifically as USCIS, the company that looks after the program, has been making the rules more clear and the procedures more logical and clear for the people that are organizing investments and for the investors that are investing, even more people have agreed and able to put initiative and cash right into the process to discover excellent jobs and develop them, and then a lot more financiers have actually agreed to invest their money and take see post the danger and utilize the cash to develop the jobs that is the factor of the program.

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These projects do not linger for life, and USCIS understands that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That does not suggest that they are relaxing their scrutiny, and, in fact, they are all set to deny applications that are not qualifying. And they do so, as was discussed


The local center component of the program is not. It becomes part of an appropriations bill that was enacted in 1992, and considering that then that program has actually been prolonged 5 times for 19 years. It is time for it to be permanent, and it needs to be done now and click site not nearer to the day of expiry in September.


The procedure takes an excellent while to function up a project and afterwards to get the capitalists authorized. And they do not desire their cash flowing through up until they have actually been accepted. And the specter of the expiration of this Regional Facility Program in September is currently dissuading the growth of projects.

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I wish to clear up that the Regional Facility Program is not the very same as the half-million-dollar thing. The idea of half a million or a million is a feature of the normal EB-5 legislation that belongs to the code. It just is a fact that a lot of the regional centers that are merging financial investments have set those instead of high unemployment or in country areas where fifty percent- million-dollar financial investments are permitted, which makes feeling.