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The program is placed in a very strange and non-helpful governmental area for the excitement of global financial investment in the United States. We are offering away too much for also little of an investment.


The regional centers, with their half-million systems, basically undercut the much more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, must have to do with developing company entities, not easy investments. It must have to do with creating actual jobs, not clarify computations concerning the indirect creation of jobs, which is now component of the regulation.


Possibly that is just one of the reasons why it has actually failed year after year to get to the legal objective of 10,000 investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is too loaded with middlemen, both public and personal. The program has greater than its share of scandals, which I will enter into later on if any person is interested.


This is an agency that likes to state yes to candidates, yet as the table in my statement shows, USCIS policemans have far more problem with EB-5 applications than others. I think that is something that no one has actually really talked around 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 that might not get them otherwise and to people whose scheduled investment is in fact less, according to the Federal Get, than the typical mean total assets of all American families in 2007. Allow me increase on one of my monitorings.


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


So for each $100 of enhanced international financial investment that year, the EB program contributed one penny. Under a much a lot more unsteady statistical base, the preliminary applications of potential immigrant financiers, USCIS is informing reporters that the level of financial investment in the just-concluded look at here year was concerning $1.2 billion. Let us approve that.

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Thank you for paying attention to me. I expect your comments and concerns. [The prepared statement of David North looks like a submission for the record.] Chairman Leahy. Thank you. Our following witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's immigration practice group.




Divine worked as Principal Advise of the United States Citizenship and Migration Services from July 2004 till November 2006, the year in which he was Acting Supervisor, and then Performing Deputy Director. He has actually worked extensively with the EB-5 program secretive technique. He was elected, as I comprehend, vice president of the Association to Buy U.S.A., the national industry association of local centers.


DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others.


At a lot of, if all 10,000 ports were made use of, it would be 1 percent of the immigration every year to the United States. It is not near that yet, but it is expanding and obtaining towards that. Especially as USCIS, the firm that oversees the program, has actually been making the rules more clear and the procedures more rational and clear for the people that are arranging financial investments and for the capitalists that are investing, even more individuals have actually agreed and able to put initiative and money into the process to find good projects and develop them, and afterwards more investors have been prepared to invest their money and take the risk and use the money to create the work that is the point of the program.

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These view publisher site projects do not linger forever, and USCIS recognizes that and are trying to speed up the program, speed up check the process - EB5 Regional Center Program. That does not suggest that they are relaxing their analysis, and, as a matter of fact, they are ready to reject applications that are not qualifying. And they do so, as was stated


The local facility part of the program is not. It becomes part of an appropriations bill that was established in 1992, and considering that then that program has actually been extended five times for 19 years. It is time for it to be long-term, and it requires to be done currently and not nearer to the day of expiry in September.


The procedure takes an excellent while to develop a project and afterwards to obtain the capitalists accepted. And they do not desire their cash streaming with till they have actually been accepted. And the specter of the expiry of this Regional Facility Program in September is currently discouraging the development of tasks.

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I would such as 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 normal EB-5 legislation that belongs to the code. It simply is a truth that the majority of the local centers that are pooling financial investments have actually established those instead of high unemployment or in backwoods where half- million-dollar investments are allowed, which makes good sense.