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


The regional centers, with their half-million systems, basically undercut the extra sensible million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they carry out in Australia, need to have to do with developing service entities, not easy investments. It ought to be about producing genuine tasks, not specify computations concerning the indirect development of tasks, which is now component of the regulation.


Possibly that is one of the reasons it has stopped working year after year to reach the legal goal of 10,000 investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is as well loaded with middlemen, both public and personal. The program has even more than its share of scandals, which I will enter into later if anyone is interested.


This is an agency that enjoys to state yes to candidates, yet as the table in my statement shows, USCIS police officers have a lot more difficulty with EB-5 applications than others. I believe that is something that no one has really spoken about much. EB5 Regional Center Program. There are high prices of interior denials in this program and forever factor

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Seventh, in this program visas most likely to individuals who might not obtain them otherwise and to individuals whose organized investment is really less, according to the Federal Get, than the average mean total assets of all American family members in 2007. Let me increase on one of my observations.


My estimate based on the capitalists' environment-friendly card applications submitted 2 years after the very first financial investment-- these are the solid ones that continue to be and are approved. This is 2009-- was that they had about $191 million verified-- that is my quote. USCIS does not supply the sort of information that we could utilize on this.


For every $100 of raised foreign financial investment that year, the EB program added one cent. Under a a lot more unsteady analytical base, the preliminary applications of would-be immigrant capitalists, USCIS is telling 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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Thanks for listening to me. I this link look forward to your remarks and concerns. [The ready declaration 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 company's migration method group.




Divine functioned as Chief Counsel of the United States Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Performing Supervisor, and after that Performing Deputy Director. He has functioned extensively with the EB-5 program in private technique. He was chosen, as I recognize, vice president of the Association to Spend in USA, the national industry association of regional.


DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At most, if all 10,000 ports were used, it would be 1 percent of the immigration every year to the USA. It is not near that yet, yet it is growing and getting towards that. Especially as USCIS, the firm that manages the program, has been making the regulations more clear and the procedures more rational and clear for individuals that are arranging investments and for the capitalists that are investing, even webpage more people have actually been ready and able to place effort and cash into the procedure to locate great tasks and create them, and after that more capitalists have been willing to spend their money and take the danger and make use of the cash to develop the work that is the point of the program.

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These projects do not wait around permanently, and USCIS recognizes that and are attempting to speed the program, speed up the process - EB5 Regional Center Program. That does not imply 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 mentioned


The local center part of the program is not. It belongs to an appropriations bill that was established in 1992, and ever since that program has been expanded five times their website for 19 years. It is time for it to be permanent, and it needs to be done currently and not nearer to the day of expiry in September.


The procedure takes a great while to develop a task and then to get the financiers authorized. And they do not desire their cash streaming via until they have been authorized. 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 would certainly like to clear up that the Regional Center Program is not the very same as the half-million-dollar thing. The concept of half a million or a million is a feature of the regular EB-5 law that is part of the code. It simply is a fact that the majority of the regional centers that are merging investments have established those in areas of high joblessness or in country locations where fifty percent- million-dollar financial investments are allowed, which makes good sense.