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The program is positioned in a really weird and non-helpful administrative location for the stimulation of international financial investment in the United States. We are offering away as well much for as well little of an investment.


The regional facilities, with their half-million plans, essentially damaged the a lot more practical million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they carry out in Australia, should be concerning creating business entities, not passive investments. It ought to have to do with producing real work, not specify calculations concerning the indirect development of tasks, which is currently part of the legislation.


Maybe that is just one of the reasons it has actually stopped working time after time to reach the legal goal of 10,000 investment visas. Fifth, the Regional Center Program is inherently awkward, and the program is as well full of middlemen, both public and exclusive. The program has greater than its share of scandals, which I will certainly enter into later on if anybody is interested.


This is a firm that enjoys to claim yes to candidates, yet as the table in my testimony shows, USCIS policemans have far more difficulty with EB-5 applications than others. I believe that is something that nobody has actually actually spoken about a lot. EB5 Regional Center Program. There are high prices of internal denials in this program and completely reason

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Seventh, in this program visas go to people who might not obtain them otherwise and to people whose planned investment is in fact much less, according to the Federal Book, than the average mean total assets of all American households in 2007. Let me expand on among my observations.


My price quote based upon the capitalists' eco-friendly card applications submitted 2 years after the initial investment-- these are the strong ones that remain and are approved. This is 2009-- was that they had concerning $191 million verified-- that is my estimate. USCIS does not give the type of information that we could utilize on this.


For every $100 of increased international investment that year, the EB program added one penny. Under a far more wobbly analytical base, the first applications of potential immigrant investors, USCIS is telling journalists that the level of investment in the just-concluded year had 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 concerns. [The ready 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 migration technique team.




Divine served as Chief Advise of the United States Citizenship and Immigration Services from July 2004 until November 2006, the year in which he was Performing Director, and after that Performing Deputy Director. He has actually functioned thoroughly with the EB-5 program secretive technique. He was elected, as I understand, vice president of the Association to Invest in U.S.A., the national market association of regional centers.


DECLARATION 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. Thank you, Mr. Chairman, Senator Grassley, and others.


At most, if all 10,000 slots were made use of, it would certainly be 1 percent of the immigration each year to the USA. It is not near that yet, however it is growing and obtaining towards that. Specifically as USCIS, the agency that supervises the program, has actually been making the policies more clear and the procedures much more rational and clear for the people that are arranging financial investments and for the capitalists that are investing, more people have wanted and able to place effort and money right into the process to locate good tasks and establish them, and afterwards more capitalists have agreed to invest their money and take the threat and make use of the money to develop the jobs that is the factor of the program.

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These jobs do not linger for life, and USCIS comprehends that and are trying to speed up the program, speed up the process - EB5 Regional Center Program. That does not imply that they are unwinding 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 facility component of the program is not. It is component of an appropriations costs that was established in 1992, and considering that then that program has been extended 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 procedure takes an excellent while to function up a project and after that to get the investors accepted. And they do not desire their money moving via up until they have been authorized. And the specter of the expiration of this Regional Facility Program in September is currently inhibiting the development of tasks.

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I would like to clarify that the Regional Facility Program is not the more info exact same as the half-million-dollar point. The concept of half a million or a million is a function of the routine EB-5 legislation that is component of the code. It simply is a fact that most of the regional centers that are pooling financial investments have actually established those instead of high unemployment or in rural locations where half- million-dollar financial investments are permitted, and that makes sense.