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The program is put in an extremely strange and non-helpful administrative place for the excitement of international financial investment in the United States. We are giving away also much for too little of an investment.


The regional centers, with their half-million schemes, essentially undercut the extra sensible million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they perform in Australia, need to be concerning developing service entities, not easy financial investments. It ought to be about creating real tasks, not specify estimations concerning the indirect creation of work, which is currently component of the legislation.


Maybe that is one of the reasons why it has stopped working every year to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is as well loaded with middlemen, both public and private. The program has even more than its share of scandals, which I will get involved in later if any person is interested.


This is an agency that likes to state yes to candidates, but as the table in my testament shows, USCIS policemans have a lot more difficulty with EB-5 applications than others. I think that is something that nobody has truly spoken about much. EB5 Regional Center Program. There are high prices of interior rejections in this program and forever factor

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Seventh, in this program visas most likely to individuals that could not obtain them differently and to people whose scheduled investment is really less, according to the Federal Reserve, than the ordinary mean total assets of all American households in 2007. Allow me increase on one of my monitorings.


My price quote based on the financiers' permit applications submitted 2 years after the first financial investment-- these are the solid ones that remain and are approved. This is 2009-- was that they had about $191 million verified-- that is my estimate. USCIS does not provide the sort of information that we could make use of on this.


For every $100 of raised international investment that year, the EB program added one cent. Under a a lot more wobbly analytical base, the initial applications of would-be immigrant capitalists, USCIS is informing journalists that the degree of financial investment in the just-concluded year was regarding $1.2 billion. Allow us approve that.

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Thank you for listening to me. I look forward to your remarks and inquiries. [The ready statement of David North looks like an entry for the document.] 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 technique team.




Divine served as Chief Counsel of the USA Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Performing Director, and afterwards Performing Replacement Director. He has worked thoroughly with click here the EB-5 program secretive practice. He was chosen, as I recognize, vice president of the Association to Spend in United States, the nationwide market organization of local facilities.


Divine, we are thrilled to have you below. Please go ahead, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE U.S.A. (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At the majority of, if all 10,000 ports were made use of, it would certainly be 1 percent of the migration every year to the United States. It is not near that yet, yet it is growing and obtaining towards that. Particularly as USCIS, the firm that looks after the program, has been making the guidelines clearer and the processes more sensible and clear for individuals who are organizing financial investments and for the investors that are investing, even more individuals have actually agreed and able to put effort and money right into the procedure to discover good tasks and establish them, and afterwards more financiers have actually wanted to invest their money and take the danger and utilize the cash to produce the tasks that is the point of the program.

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These projects do not wait around for life, and USCIS recognizes that and are attempting to speed the program, speed the procedure - EB5 Regional Center Program. That does not mean that they are relaxing their scrutiny, and, actually, they prepare to refute applications that are not certifying. And they do so, as was pointed out


The regional center component of the program is not. It becomes part of an appropriations expense that was passed in 1992, and because then that program has actually been prolonged five times for 19 years. It is time for it to be long-term, and it needs to be done now and not nearer to the day of expiration in September.


The procedure takes an excellent while to develop a job and afterwards to get the financiers accepted. And they do not desire their cash streaming with till they have been authorized. And the specter of the expiry of this Regional Center Program in September is already dissuading the development of jobs.

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I wish to make clear that the Regional Facility Program is not the like the half-million-dollar thing. The concept of half a million or a million is a feature of the routine EB-5 law that belongs to the code. It simply is a fact that the majority of the regional facilities that are pooling investments have actually established those instead of high joblessness or in rural locations where half- million-dollar investments are enabled, which makes feeling.