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The program is positioned in an extremely weird and non-helpful administrative area for the stimulation of global financial investment in the United States. We are providing away as well much for too little of a financial investment.


The regional facilities, with their half-million schemes, essentially undercut the more practical million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, ought to have to do with developing organization entities, not passive financial investments. It should have to do with creating actual jobs, not elaborate calculations about the indirect production of work, which is now component of the regulation.


Maybe that is just one of the reasons that it has actually fallen short every year to get to the legal objective of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is too loaded with middlemen, both public and private. The program has greater than its share of detractions, which I will certainly enter later on if anybody is interested.


This is a company that likes to say yes to candidates, however as the table in my testimony shows, USCIS officers have far more difficulty with EB-5 applications than others. I believe that is something that no one has actually discussed much. EB5 Regional Center Program. There are high prices of internal denials in this program and forever reason

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Seventh, in this program visas most likely to people that could not get them otherwise and to individuals whose organized financial investment is really much less, according to the Federal Reserve, than the ordinary mean web well worth of all American family members in 2007. Allow me broaden on one of my monitorings.


My price quote based on the capitalists' permit applications submitted 2 years after the first investment-- these are the strong ones that continue to be and are authorized. This is 2009-- was that they had about $191 million validated-- that is my quote. USCIS does not supply the kind of data that we could utilize on this.


For every $100 of raised foreign investment that year, the EB program added one dime. Under a much more unsteady statistical base, the preliminary applications of prospective immigrant investors, USCIS is informing journalists that the degree of financial investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thank you for paying attention to me. I expect your comments and inquiries. [The ready declaration of David North looks like a submission for the record.] Chairman Leahy. Thank you. Our following witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's migration technique group.




Divine acted as Chief Counsel of the United my review here States Citizenship and Migration Providers from July 2004 until November 2006, the year in which he was Acting Supervisor, and afterwards Acting Replacement Supervisor. He has worked extensively with the EB-5 program secretive technique. He was elected, as I comprehend, vice head of state of the Organization to Buy USA, the national market organization of local centers.


STATEMENT 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, Senator Grassley, and others.


At a lot of, if all 10,000 ports were used, it would be 1 percent of the immigration every year to the USA. It is not near that yet, but it is expanding and obtaining toward that. Especially as USCIS, the company that oversees the program, has actually been making the regulations more clear and the procedures a lot more rational and clear for individuals that are arranging financial investments and for the capitalists that are spending, even more people have been prepared and able to put effort and cash right into the procedure to find good projects and create them, and afterwards a lot more financiers have agreed to spend their cash and take the risk and use the cash to produce the work that is the point of the program.

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These projects do not wait about permanently, and USCIS understands that and are attempting to speed the program, speed the process - EB5 Regional Center Program. That does not imply that they are unwinding their scrutiny, and, as a matter of fact, they prepare to reject applications that are not qualifying. And they do so, as was pointed out


The regional center part of the program is not. It is part of an appropriations bill that was enacted in 1992, and ever since that program has actually been expanded 5 times for 19 years. websites It is time for it to be irreversible, 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 task and after that to obtain the capitalists accepted. And they do not desire try these out their cash moving via till they have actually been authorized. And the specter of the expiration of this Regional Center Program in September is currently dissuading the development of projects.

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I would love to clarify that the Regional Center Program is not the very same as the half-million-dollar thing. The idea of half a million or a million is a function of the normal EB-5 law that becomes part of the code. It simply is a reality that the majority of the local centers that are merging financial investments have set those in locations of high unemployment or in backwoods where fifty percent- million-dollar investments are allowed, which makes feeling.