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The program is positioned in an extremely odd and non-helpful bureaucratic location for the stimulation of worldwide financial investment in the United States. We are giving away too much for also little of an investment.

The regional centers, with their half-million schemes, basically undercut the more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they perform in Australia, should be about developing service entities, not passive financial investments. It should have to do with developing actual jobs, not specify estimations concerning the indirect production of tasks, which is currently component of the regulations.


Maybe that is among the reasons that it has actually fallen short time after time to get to the legal objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is too loaded with middlemen, both public and exclusive. The program has greater than its share of scandals, which I will obtain right into later on if anybody is interested.


This is a firm that enjoys to claim yes to candidates, however as the table in my statement reveals, USCIS police officers have much extra trouble with EB-5 applications than others. I believe that is something that no one has actually truly spoken around much. EB5 Regional Center Program. There are high prices of interior rejections in this program and forever reason

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Seventh, in this program visas go to individuals who can not get them otherwise and to people whose scheduled investment is actually much less, according to the Federal Book, than the typical mean net well worth of all American family members in 2007. Let me broaden on among my monitorings.


My estimate based upon the capitalists' permit applications filed 2 years after the very first investment-- these are the solid ones that remain and are authorized. This is 2009-- was that they had regarding $191 million verified-- that is my quote. USCIS does not offer the kind of information that we could make use of on this.


So for every $100 of raised international investment that year, the EB program added one penny. Under a far more shaky statistical base, the initial applications of potential immigrant investors, USCIS is telling journalists that the level of investment in the just-concluded year was about $1.2 billion. Allow us approve that.

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Thanks for listening to me. I anticipate your remarks and questions. [The prepared statement of David North appears as an entry for the record.] 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 immigration practice group.

Divine served as Chief Guidance of the USA Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Performing Director, and then Acting Replacement Director. He has functioned extensively with the EB-5 program secretive technique. He was elected, as I recognize, vice head of state of the Organization to Buy United States, the national industry association of local facilities.


Divine, we are delighted to have you website here. Please go on, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, BUY THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At a lot of, if all 10,000 ports were utilized, it would certainly be 1 percent of the migration each year to the United States. It is not near that yet, but it is growing and obtaining towards that. Specifically as USCIS, the firm that supervises the program, has actually been making the rules clearer and the processes much more sensible and clear for the people who are arranging financial investments and for the investors who are investing, more individuals have wanted and able to put effort and money into the process to locate excellent tasks and develop them, and after that a lot more investors have wanted to invest their cash and take the threat and make use of the cash to create the jobs that is the point of the program.

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These tasks do not linger for life, and USCIS understands that and are attempting to speed up the program, speed up the procedure - EB5 Regional Center Program. That does not suggest that they are unwinding their analysis, and, actually, they are all set to deny applications that are not certifying. And they do so, as was mentioned

The local center component of the program is not. It is part of an appropriations expense that was passed in 1992, and considering that then that program has actually been prolonged 5 times for 19 years. It is time for it to be permanent, and it needs to be done currently and not nearer to the date of expiry in September.


The process takes an excellent while to work up a project and after that to get the financiers approved. And they do not desire their cash moving with till they have been approved. And the specter of the expiration of this Regional Center Program in September is currently inhibiting the development of projects.

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I want to clarify that the Regional Facility Program is not the very same as the half-million-dollar point. The concept of half a million or a million is a function of the normal EB-5 legislation that belongs to the code. It just is a reality that a lot of the regional centers that are pooling investments have established those in areas of high joblessness or in country locations where fifty percent- million-dollar financial investments are permitted, which makes good sense.