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The program is placed in an extremely odd and non-helpful administrative location for the excitement of international investment in the United States. We are giving away too much for too little of an investment.


The regional facilities, with their half-million systems, essentially damaged the more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they perform in Australia, need to have to do with developing company entities, not passive investments. It must have to do with developing real work, not clarify estimations about the indirect creation of jobs, which is now component of the legislation.


Maybe that is just one of the factors why 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 as well full of intermediaries, both public and private. The program has greater than its share of scandals, which I will get right into later if anyone is interested.


This is a firm that enjoys to say yes to candidates, yet as the table in my testament shows, USCIS police officers have a lot a lot more trouble with EB-5 applications than others. I assume that is something that no one has actually really spoken about a lot. EB5 Regional Center Program. There are high rates of interior rejections in this program and for good reason

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Seventh, in this program visas most likely to individuals who might not obtain them any type of various other means and to individuals whose scheduled financial investment is in fact much less, according to the Federal Get, than the average mean web worth of all American families in 2007. Allow me broaden on among my observations.


My quote based upon the capitalists' permit applications filed 2 years after the very first investment-- these are the strong ones that continue to be and are accepted. This is 2009-- was that they had about $191 million verified-- that is my estimate. USCIS does not give the kind of data that we might utilize on this.


So for every single $100 of raised international financial investment that year, the EB program contributed one dime. Under a much extra unsteady analytical base, the initial applications of potential immigrant investors, USCIS is informing reporters that the degree of financial investment in the just-concluded year had to do with $1.2 billion. Let us accept that.

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Thank you for paying attention to me. I eagerly anticipate your comments and questions. [The prepared statement of David North looks like an entry for the record.] Chairman Leahy. Thank you. Our next witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's migration method group.




Divine functioned as Principal Counsel of the United States Citizenship and Immigration Services from July 2004 up until November 2006, the year in which he was Acting Supervisor, and after that Performing Deputy Supervisor. He has worked thoroughly with the EB-5 program secretive technique. He was chosen, as I comprehend, vice president of the Association to Buy USA, the national sector association of regional centers.


STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others.


At a lot of, if all 10,000 ports were made use of, it would be 1 percent of the immigration every year to the USA. It is not near that yet, yet it is expanding and obtaining towards that. Specifically as USCIS, the agency that manages the program, has been making the regulations clearer and the procedures a lot more logical and clear for individuals who are organizing investments and for the capitalists who are spending, even more people have wanted and able to place initiative and money into the process to find great tasks and establish them, and after that much more investors have actually wanted to spend their cash and take the risk and use the cash to develop the jobs that is the factor of the program.

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These projects do not wait about forever, and USCIS understands that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That does not indicate that they are unwinding their examination, and, as a matter of fact, they prepare to deny applications that are not certifying. And they do so, as was discussed


The local facility part of the program is not. It becomes part of an appropriations costs that was passed in 1992, and ever since that program has been expanded 5 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 date of expiration in September.


The process takes a great while to develop a job and after that to obtain the financiers authorized. And they do not desire their money streaming with up until they have been accepted. And the specter of the expiry of this Regional Facility Program in September is already preventing the growth of tasks.

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I would such as to clear up that the Regional Facility Program is get more info not the like the half-million-dollar thing. The idea of half a million or a million is a feature of the normal EB-5 law that becomes part of the code. It just is a fact that a lot of the regional centers that are merging financial investments have actually set those instead of high joblessness or in backwoods where half- million-dollar investments are permitted, and that makes sense.