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The program is placed in a very strange and non-helpful administrative area for the stimulation of worldwide investment in the United States. We are offering away also much for too small 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 all, as they do in Australia, must be concerning developing organization entities, not passive financial investments. It should have to do with producing real jobs, not clarify calculations regarding the indirect creation of work, which is currently component of the regulation.


Probably that is one of the factors why it has actually failed time after time to get to the legal objective of 10,000 investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is too loaded with intermediaries, both public and personal. The program has greater than its share of rumors, which I will enter later on if anybody is interested.


This is a company that likes to claim yes to candidates, yet as the table in my testament shows, USCIS policemans have a lot more problem with EB-5 applications than others. I assume that is something that nobody has truly spoken about much. EB5 Regional Center Program. There are high rates of internal rejections in this program and permanently factor

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Seventh, in this program visas go to people that can not get them otherwise and to people whose planned investment is in fact less, according to the Federal Book, than the ordinary mean total assets of all American families in 2007. Allow me broaden on one of my monitorings.


My quote based on the investors' permit applications filed 2 years after the very first financial investment-- these are the solid ones that continue to be and are authorized. This is 2009-- was that they had concerning $191 million confirmed-- that is my quote. USCIS does not provide the kind of data that we might utilize on this.


For every $100 of boosted foreign investment that year, the EB program added one cent. Under a a lot more shaky analytical base, the initial applications of prospective immigrant investors, USCIS is telling journalists 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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Thanks for listening to me. I look onward to your comments and concerns. [The prepared statement of David North looks like an entry for the document.] Chairman Leahy. Thanks. Our next witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the his response head of the firm's migration technique group.




Divine worked as Chief Advise of the USA Citizenship and Migration Services from July 2004 until November 2006, the year in which he was Acting Supervisor, and after that Acting Deputy Director. He has actually worked extensively with the EB-5 program in private practice. He was chosen, as I comprehend, vice president of the Association to Invest in USA, the nationwide market association of local centers.


Divine, we are happy to have you below. Please proceed, sir. STATEMENT 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, Legislator Grassley, and others. Thank you for having me.


At a lot of, if all 10,000 slots were utilized, it would be 1 percent of the migration each year to the United States. It is not near that yet, but it is growing and getting toward that. Particularly as USCIS, the company that manages the program, has actually been making the guidelines more clear and the procedures a lot more rational and clear for the individuals that are organizing financial investments and for the investors who are spending, more individuals have been ready and able to place effort and money right into the procedure to locate good tasks and create them, and then much more investors have actually wanted to spend their cash and take the risk and utilize the cash to create the tasks that is the factor of the program.

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These tasks do not linger for life, and USCIS understands that and are trying to speed the program, speed the procedure - EB5 Regional Center Program. That does not imply that they are relaxing their scrutiny, and, as a matter of fact, they are prepared to deny applications that are not qualifying. And they do so, as was stated


The regional facility component of the program is not. It belongs to an appropriations expense that was enacted in 1992, and because then that program has actually been expanded 5 times for 19 years. It is time for it to be long-term, and it requires to be done now and not nearer to the date of expiration in September.


The process takes an excellent while to develop a task and after that to recommended you read get the financiers authorized. And they do not desire their money streaming through up until special info they have been approved. And the specter of the expiration of this Regional Facility Program in September is currently preventing the development of jobs.

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I want to make clear that the Regional Center Program is not the exact same as the half-million-dollar point. The concept of half a million or a million is a function of the normal EB-5 law that belongs to the code. It just is a fact that the majority of the regional centers that are pooling investments have set those instead of high joblessness or in backwoods where half- million-dollar investments are allowed, which makes feeling.