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The program is placed in an extremely weird and non-helpful bureaucratic place for the excitement of global financial investment in the United States. We are giving away as well much for too tiny of an investment.

The local facilities, with their half-million plans, basically damaged the a lot more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they perform in Australia, need to have to do with producing business entities, not passive investments. It must have to do with developing real tasks, not clarify calculations regarding the indirect production of work, which is currently part of the regulation.


Possibly that is one of the reasons it has stopped working year after year to get to the legal goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is also filled with middlemen, both public and exclusive. The program has even more than its share of detractions, which I will certainly get right into later on if any person is interested.


This is an agency that likes to claim yes to candidates, but as the table in my statement reveals, USCIS officers have a lot more difficulty with EB-5 applications than others. I believe that is something that no one has actually really spoken about a lot. EB5 Regional Center Program. There are high rates of internal rejections in this program and for excellent factor

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Seventh, in this program visas go to individuals that might not get them otherwise and to people whose scheduled financial investment is actually much less, according to the Federal Book, than the ordinary mean web well worth of all American households in 2007. Let me expand on among my observations.


My estimate based upon the capitalists' permit applications submitted 2 years after the first financial investment-- these are the strong ones that continue to be and are accepted. This is 2009-- was that they had concerning $191 million validated-- that is my quote. USCIS does not supply the type of data that we can make use of on this.


For every $100 of increased foreign financial investment that year, the EB program added one dime. Under a a lot more wobbly analytical base, the preliminary applications of would-be immigrant investors, USCIS is informing journalists that the degree of investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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Thank you for paying attention to me. I anticipate your comments and inquiries. [The ready statement of David North shows up as an entry for the document.] Chairman Leahy. Thank you. Our next witness is Robert click for info Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's immigration practice group.

Divine worked as Chief Advise of the United States Citizenship and Immigration Services from July 2004 up until November 2006, the year in which he was Acting Director, and after that Performing Replacement Director. He has actually worked thoroughly with the EB-5 program in personal technique. He was elected, as I recognize, vice head of state of the Association to Invest in United States, the nationwide market association of regional.


Divine, we are happy to have you here. Please proceed, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, BUY THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At the majority of, if all 10,000 ports were utilized, it would be 1 percent of the immigration yearly to the USA. It is not near that yet, but it is growing and obtaining towards that. Especially as USCIS, the firm that supervises the program, has been making the guidelines more clear and the processes a lot more rational and clear for individuals who are arranging financial investments and for the financiers who are investing, even more individuals have agreed and able to put effort and money right into the procedure to discover great tasks and develop them, and after that a lot more capitalists have wanted to spend their money and take the threat and make use of the money to create the jobs that is the factor of the program.

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These tasks do not linger permanently, and USCIS recognizes that and are attempting to speed up the program, speed the process - EB5 Regional Center Program. That does not suggest that they are relaxing their examination, and, actually, they are prepared to deny applications that are not certifying. And they do so, as try this out was discussed

The regional facility part of the program is not. It becomes part of an appropriations expense that was enacted in 1992, and ever since that program has been prolonged 5 times for 19 years. It is time for it to be long-term, and it needs to be done currently and not nearer to the day of expiration in September.


The procedure takes an excellent while to function up a job and after that to obtain the capitalists accepted. And they do not desire their cash flowing through till they have been accepted. And the specter of the expiry of this Regional Facility Program in September is currently dissuading the advancement of jobs.

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I would love to make clear that the Regional Facility Program is not the like the half-million-dollar point. The idea of half a million or a million is a function of you can try this out the regular EB-5 legislation that belongs to the code. It just is a fact that most of the regional facilities that are pooling financial investments have actually set those instead of high joblessness or in backwoods where fifty percent- million-dollar financial investments are allowed, and that makes sense.