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The program is positioned in a really strange and non-helpful governmental place for the stimulation of worldwide investment in the United States. We are giving away also much for too tiny of an investment.


The regional centers, with their half-million plans, basically damaged the more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they do in Australia, need to be concerning producing business entities, not easy investments. It must be regarding developing real work, not specify estimations about the indirect creation of tasks, which is currently part of the legislation.


Possibly that is among the reasons it has actually failed time after time to reach the legislative objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is too loaded with middlemen, both public and personal. The program has even more than its share of scandals, which I will certainly get into later if anyone is interested.


This is a company that loves to state yes to candidates, but as the table in my testament reveals, USCIS officers have a lot more problem with EB-5 applications than others. I think that is something that nobody has actually truly spoken around much. EB5 Regional Center Program. There are high rates of inner rejections in this program and forever reason

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Seventh, in this program visas go to people who might not get them otherwise and to individuals whose scheduled financial investment is really less, according to the Federal Reserve, than the typical mean total assets of all American family members in 2007. Let me expand on among my observations.


My price quote based upon the capitalists' permit applications submitted 2 years after the initial financial investment-- these are the strong ones that continue to be and are accepted. This is 2009-- was that they had regarding $191 million confirmed-- that is my quote. USCIS does not offer the kind of data that we could utilize on this.


So for every single $100 of boosted foreign financial investment that year, the EB program contributed one penny. Under a a lot more shaky statistical base, the first applications of potential immigrant financiers, USCIS is telling reporters that the level of financial investment in the just-concluded year was about $1.2 billion. Allow us accept that.

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Thank you for listening to me. I anticipate your comments and questions. [The ready declaration of David North shows up as an entry for the document.] Chairman Leahy. Thanks. 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 migration technique team.




Divine worked as Principal Counsel of the United States Citizenship and Migration Providers from July 2004 up until November 2006, the year in which he was Acting Supervisor, and after that Acting Replacement Director. He has actually worked extensively with the EB-5 program in exclusive method. He was elected, as I recognize, vice president of the Organization to Invest in USA, the nationwide industry association of local.


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


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 getting toward that. Particularly as USCIS, the agency that looks after the program, has actually been making the policies clearer description and the procedures much more sensible and clear for the individuals that are organizing investments and for the financiers that are investing, more people have been eager and able to put initiative and money right into the process to find excellent tasks and establish them, and then much more financiers have agreed to invest their cash and take the danger and utilize the money to create the jobs that is the factor of the program.

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These jobs do not wait about forever, and USCIS comprehends that and are trying to speed up the program, speed the procedure - EB5 Regional Center Program. That does not imply that they are unwinding their scrutiny, and, actually, they are prepared to deny applications that are not certifying. And they do so, as was discussed


The local facility component of the program is not. It belongs to an appropriations costs that was enacted in 1992, and considering that then that program has actually been expanded 5 times for 19 years. It is time for it to be irreversible, and it needs to be done now and not nearer to the day of expiration in September.


The process takes an excellent while to work up a job and after that to obtain the capitalists accepted. And they do not desire their cash moving via until they have been authorized. And the specter of the expiry of this Regional Facility Program in September is already preventing the growth of projects.

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I would love to make clear that the Regional Facility Program is not the same as the half-million-dollar thing. The idea of half a million or a million is a function of the routine EB-5 law that becomes part of the code. It just is a truth that the majority of the local facilities that are merging investments have actually established those in find places of high joblessness or in country areas where fifty percent- million-dollar investments are enabled, which makes good sense.