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The program is put in a really weird and non-helpful governmental area for the stimulation of global financial investment in the United States. We are providing away as well much for too tiny of an investment.


The regional centers, with their half-million systems, basically damaged the extra reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they perform in Australia, need to have to do with creating organization entities, not passive investments. It ought to be regarding creating real work, not clarify computations regarding the indirect production of jobs, which is now part of the regulations.


Possibly that is among the reasons it has failed year after year to reach the legislative goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is also loaded with middlemen, both public and personal. The program has more than its share of detractions, which I will certainly get involved in later on if anyone is interested.


This is a company that loves to say yes to applicants, yet as the table in my statement reveals, USCIS police officers have far more trouble with EB-5 applications than others. I believe that is something that nobody has truly spoken about much. EB5 Regional Center Program. There are high prices of inner rejections in this program and for good reason

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Seventh, in this program visas go to individuals that could not obtain them otherwise and to individuals whose organized financial investment is really less, according to the Federal Get, than the average mean total assets of all American households in 2007. Let me increase on among my observations.


My estimate based on the capitalists' eco-friendly card applications filed 2 years after the first financial investment-- these are the strong ones that stay and are authorized. This is 2009-- was that they had about $191 million validated-- that is my price quote. USCIS does not provide the sort of data that we might make use of on this.


So for every single $100 of raised foreign financial investment that year, the EB program contributed one cent. Under a much extra unsteady analytical base, the preliminary applications of would-be immigrant capitalists, USCIS is telling journalists that the degree of investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thank you for listening to me. I expect your comments and inquiries. [The ready statement of David North looks like a submission for the document.] 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 immigration technique team.




Divine worked as Principal Advice of the USA Citizenship and Immigration Providers from July 2004 up until November 2006, the year discover here in which he was Performing Director, and after that Performing Replacement Supervisor. He has worked extensively with the EB-5 program secretive technique. He was elected, as I recognize, vice head of state of the Organization to Invest in U.S.A., the national sector association of local.


STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, 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 yearly to the United States. It is not near that yet, however it is growing and getting toward that. Especially as USCIS, the agency that supervises the program, has been making the regulations clearer and the processes more reasonable and clear for individuals that are arranging investments and for the capitalists that are investing, even more people have actually agreed and able to put effort and cash into the procedure to discover great tasks and develop them, and afterwards much more financiers have actually agreed to spend 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 tasks do not linger permanently, and USCIS comprehends that and are attempting to speed up the program, speed the procedure - EB5 Regional Center Program. That does not suggest that they are unwinding their scrutiny, and, in fact, they prepare to refute applications that are not qualifying. And they do so, as was stated


The regional center component of the program is not. It becomes part of an appropriations Look At This expense that was established in 1992, and since then that program has been extended five times for 19 years. It is time for it to be long-term, and it needs to be done currently and not nearer to the day of expiry in September.


The process takes an excellent while to develop a task and after that to get the investors authorized. And they do not want their cash flowing with until they have actually been accepted. And the specter of the expiry of this Regional Facility Program in September is currently inhibiting the development of projects.

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I wish to go to website clear up 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 function of the normal EB-5 regulation that becomes part of the code. It just is a truth that a lot of the local centers that are merging financial investments have established those instead of high unemployment or in country areas where half- million-dollar investments are enabled, which makes feeling.