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The program is positioned in a very odd and non-helpful governmental place for the excitement of international investment in the United States. We are offering away too much for too little of a financial investment.


The regional centers, with their half-million schemes, essentially damaged the more practical million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they perform in Australia, must have to do with producing business entities, not passive investments. It must be about developing genuine tasks, not elaborate computations about the indirect development of work, which is currently part of the regulation.


Possibly that is among the reasons that it has fallen short every year to get to the legal goal of 10,000 investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is also filled up with intermediaries, both public and exclusive. The program has more than its share of detractions, which I will certainly enter later if anybody is interested.


This is a company that loves to claim yes to candidates, however as the table in my statement shows, USCIS officers have much a lot more problem with EB-5 applications than others. I assume that is something that nobody has actually really discussed a lot. EB5 Regional Center Program. There are high prices of internal denials in this program and for good reason

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Seventh, in this program visas go to individuals who could not obtain them otherwise and to people whose planned financial investment is actually much less, according to the Federal Get, than the average mean total assets of all American households in 2007. Allow me increase on one of my monitorings.


My price quote based upon the investors' permit applications filed 2 years after the very first investment-- these are the strong ones that stay and are approved. This is 2009-- was that they had concerning $191 million confirmed-- that is my estimate. USCIS does not supply the kind of information that we could make use of on this.


So for every $100 of boosted foreign investment that year, the EB program contributed one dime. Under a much a lot more wobbly statistical base, the first applications of would-be immigrant capitalists, USCIS is informing journalists that the degree of financial investment in the just-concluded year was concerning $1.2 billion. Allow us accept that.

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Thank you for paying attention to me. I look forward to your comments and inquiries. [The ready statement of David North looks like a submission 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 firm's immigration method team.




Divine acted as Principal Guidance of the USA Citizenship and Migration Providers from July 2004 until November 2006, the year in which he was Performing Supervisor, and afterwards Performing Replacement Director. He has worked thoroughly with the EB-5 program secretive method. He was chosen, as I understand, vice head of state of the Organization to Invest in United States, the nationwide market association of regional centers.


Divine, we are thrilled to have you here. Please proceed, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY THE USA (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 migration yearly to the USA. It is not near that yet, however it is expanding and obtaining toward that. Especially as USCIS, the agency that looks after the program, has been making the guidelines more clear and the processes extra rational and clear for the individuals who are arranging financial investments and for the investors that are spending, more people have agreed and able to place effort and money into the procedure to locate great tasks and create them, and after that a lot more financiers have wanted to invest their cash and take the risk and make use of the cash to create the tasks that is the point of the program.

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These projects do not wait around permanently, and USCIS recognizes that and are trying to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not get more info mean that they are unwinding their examination, and, as a matter of fact, they prepare to refute applications that are not certifying. And they do so, as was pointed out


The local center part of the program is not. It belongs to an appropriations expense that was established in 1992, and since then that program has actually 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 date of expiry in September.


The process takes an excellent while to develop a job and then to obtain the capitalists authorized. And they do not want their money moving via until they have been accepted. And the specter of the expiry of this Regional Facility Program in September is currently dissuading the growth of jobs.

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I want to make clear that the Regional Center Program is not the same as the half-million-dollar thing. The concept of half a million or a million is a function of the regular EB-5 law that belongs to the code. It just is a truth that a lot of the regional facilities that are pooling investments have actually established those in places of high unemployment or in backwoods where fifty percent- million-dollar investments are allowed, which makes good sense.