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The program is placed in a very weird and non-helpful governmental location for the stimulation of international financial investment in the United States. We are providing away also much for too small of a financial investment.


The regional centers, with their half-million schemes, essentially undercut the a lot more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they perform in Australia, ought to be regarding developing service entities, not easy financial investments. It needs to have to do with developing actual tasks, not elaborate calculations concerning the indirect production of jobs, which is now component of the legislation.


Probably that is among the reasons that it has stopped working time after time to reach the legal objective of 10,000 investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is as well full of intermediaries, both public and private. The program has even more than its share of detractions, which I will certainly get involved in later if anyone is interested.


This is a company that enjoys to state yes to candidates, but as the table in my statement reveals, USCIS police officers have far more problem with EB-5 applications than others. I assume that is something that no one has actually truly discussed much. EB5 Regional Center Program. There are high rates of internal denials in this program and forever reason

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Seventh, in this program visas go to people who might not get them differently and to individuals whose scheduled financial investment is really much less, according to the Federal Get, than the typical mean total assets of all American households in 2007. Allow me increase on one of my monitorings.


My price quote based upon the investors' eco-friendly card applications filed 2 years after the very first financial investment-- these are the strong ones that stay and are authorized. This is 2009-- was that they had regarding $191 million confirmed-- that is my price quote. USCIS does not provide the kind of information that we can use on this.


For every $100 of raised foreign financial investment that year, the EB program contributed one cent. Under a a lot more shaky statistical base, the preliminary applications of prospective immigrant investors, USCIS is informing reporters that the level of investment in the just-concluded year had see this page to do with $1.2 billion. Let us accept that.

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Thank you for listening to me. I eagerly anticipate your comments and inquiries. [The ready declaration of David North looks like an entry for the document.] Chairman Leahy. Thank you. Our next witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's migration method group.




Divine served as Principal Counsel of the United States Citizenship and Immigration Solutions from July 2004 up until November 2006, the year in which he was Performing Supervisor, and afterwards Acting Replacement Director. He has functioned extensively with the EB-5 program secretive method. He was chosen, as I comprehend, vice head of state of the Association to Spend in USA, the national market organization of local facilities.


STATEMENT 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 many, if all 10,000 slots were utilized, it would be 1 percent of the immigration each year to the United States. It is not near that yet, but it is expanding and getting toward that. Especially as USCIS, the firm that manages the program, has actually been making the guidelines clearer and the procedures more rational and clear for individuals who are arranging financial investments and for the investors that are investing, more individuals have agreed and able to place effort and cash right into the procedure to discover excellent jobs and develop them, and afterwards extra capitalists have actually wanted to invest their money and take the threat and make use of the cash to produce the tasks that is the point of the program.

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These jobs do not wait around for life, and USCIS recognizes that and are trying to speed the program, speed up the process EB5 Regional Center Program - EB5 Regional Center Program. That does not mean that they are relaxing their examination, and, as a matter of fact, they prepare to reject applications that are not qualifying. And they do so, as was pointed out


The local center component of the program is not. It is component of an appropriations costs that was enacted in 1992, and given that then that program has try this been prolonged 5 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 expiry in September.


The process takes a great while to develop a job and after that to get the capitalists accepted. And they do not want their cash streaming via up until they have actually been accepted. And the specter of the expiry of this Regional Facility Program in September is already inhibiting the development of jobs.

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I would love to clarify that the Regional Center Program is not the like the half-million-dollar thing. The concept of half a million or a million is a feature of the normal EB-5 regulation that becomes part of the code. It just is a fact that the majority of the regional centers that are merging investments have actually established those instead of high joblessness or in backwoods where fifty percent- million-dollar financial investments are allowed, which makes good sense.