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The program is positioned in a really weird and non-helpful administrative place for the excitement of international investment in the United States. We are offering away also much for as well little of a financial investment.


The regional facilities, with their half-million systems, essentially undercut the much more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they carry out in Australia, must be about creating business entities, not passive financial investments. It needs to be regarding developing genuine jobs, not elaborate estimations concerning the indirect creation of tasks, which is currently component of the legislation.


Probably that is one of the reasons it has actually fallen short every year to reach the legal goal of 10,000 investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is also full of middlemen, both public and personal. The program has even more than its share of detractions, which I will get involved in later if any person is interested.


This is an agency that enjoys to claim yes to candidates, however as the table in my testimony reveals, USCIS policemans have a lot more problem with EB-5 applications than others. I believe that is something that nobody has actually discussed much. EB5 Regional Center Program. There are high prices of inner rejections in this program and completely reason

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Seventh, in this program visas go to individuals that could not obtain them differently and to individuals whose planned financial investment is really much less, according to the Federal Reserve, than the average mean total assets of all American family members in 2007. Allow me expand on one of my monitorings.


My quote based on the financiers' permit applications filed 2 years after the very first financial investment-- these are the strong ones that stay and are accepted. This is 2009-- was that they had concerning $191 million verified-- that is my price quote. USCIS does not supply the sort of data that we can use on this.


So for each $100 of increased international financial investment that year, the EB program contributed one dime. Under a much extra unsteady statistical base, the initial applications of would-be immigrant investors, USCIS is telling reporters that the degree of investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thanks for paying attention to me. I anticipate your comments and concerns. [The prepared declaration of David North appears as a submission for the record.] 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 firm's immigration method group.




Divine offered as Principal Advice of the United States Citizenship and Immigration Providers from July 2004 up until November 2006, the year in which he was Performing Director, and afterwards Performing Deputy Supervisor. He has actually functioned thoroughly with the EB-5 program in private practice. He was elected, as I comprehend, vice president of the Association to Spend in U.S.A., the national market association of regional.


Divine, we are delighted to have you right here. Please go on, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At most, if all 10,000 slots were used, it would be 1 percent of the immigration annually to the United States. It is not near that yet, but it is expanding and getting towards that. Especially as USCIS, the firm that manages the program, has been making the rules clearer and the procedures extra reasonable and clear here for individuals that are organizing financial investments and for the financiers that are spending, more individuals have actually been ready and able to put initiative and money into the procedure to discover great jobs and establish them, and after that much more investors have been eager to invest their money and take the threat and utilize the cash to develop the tasks that is the point of the program.

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These projects do not linger forever, and USCIS understands that and are trying to speed up the program, speed the process - EB5 Regional Center Program. That does not suggest that they are unwinding their examination, and, as a matter of fact, they are prepared to reject applications that are not qualifying. And they do so, as was pointed out


The regional center part of the program is not. It becomes part of an appropriations expense that was established in 1992, and since then that program has actually been extended five 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 expiry in September.


The process takes a good while to develop a project and then to get the financiers authorized. And they do not want their cash flowing with till they have been accepted. And the specter of the expiration of this Regional Facility Program in September is currently discouraging the growth of jobs.

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I would certainly such as to clarify 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 feature of the routine EB-5 legislation that is component of the code. It just is a reality that a lot of the regional centers that are merging financial investments have actually established those instead of high joblessness or in backwoods where half- million-dollar investments are enabled, and that makes good sense.