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The program is put in a very strange and non-helpful governmental location for the excitement of international investment in the United States. We are giving away too much for too small of an investment.


The regional facilities, with their half-million schemes, basically undercut the a lot more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, need to have to do with creating service entities, not easy investments. It needs to be about developing real work, not clarify estimations about the indirect production of tasks, which is now part of the regulations.


Possibly that is among the factors why it has actually fallen short year after year to get to the legal goal of 10,000 investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is also full of middlemen, both public and exclusive. The program has greater than its share of scandals, which I will enter later on if anybody is interested.


This is a firm that likes to claim yes to applicants, however as the table in my testament shows, USCIS policemans have a lot more trouble with EB-5 applications than others. I assume that is something that no one has really spoken about much. EB5 Regional Center Program. There are high rates of interior rejections in this program and forever factor

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Seventh, in this program visas most likely to people that can not obtain them otherwise and to individuals whose scheduled financial investment is actually less, according to the Federal Get, than the typical mean net well worth of all American family members in 2007. Let me expand on among my monitorings.


My quote based on the capitalists' permit applications submitted 2 years after the first investment-- these are the solid ones that stay and are accepted. This is 2009-- was that they had about $191 million confirmed-- that is my estimate. USCIS does not offer the type of information that we could make use of on this.


For every $100 of raised international investment that year, the EB program added one cent. Under a much more unsteady analytical base, the preliminary applications of prospective immigrant capitalists, USCIS is informing journalists that the degree of financial investment in the just-concluded year was regarding $1.2 billion. Let us approve that.

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Thanks for paying attention to me. I anticipate your comments and concerns. [The ready declaration of David North looks like a submission for the document.] Chairman Leahy. Thank you. Our next witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's immigration method team.




Divine served as Chief Advice of the USA Citizenship and Immigration Providers from July 2004 up until November 2006, the year in which he was Acting Supervisor, and after that Acting Replacement Director. He has actually worked extensively with the EB-5 program in personal practice. He was elected, as I recognize, vice president of the Organization to Invest in U.S.A., the national industry association of local.


Divine, we are thrilled to have you here. Please proceed, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, BUY THE USA (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At most, if all 10,000 slots were used, it would be 1 percent of the migration yearly to the United States. It is not near that yet, but it is growing and getting towards that. Especially as USCIS, the firm that supervises the program, has actually been making the guidelines more clear and the processes a lot more sensible and clear for individuals that are arranging financial investments and for the capitalists who are investing, more people have wanted and able to place initiative and money into the process to discover excellent tasks and establish them, and after that more capitalists webpage have actually wanted to invest their money and take the danger and utilize the money to create the tasks that is the point of the program.

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These jobs do not wait around forever, and USCIS recognizes that and are attempting to speed the program, speed the procedure - EB5 Regional Center Program. That does not mean that they are relaxing their analysis, and, actually, they are prepared to reject applications that are not certifying. And they do so, as was pointed out


The regional center part of the program is not. It is component of an appropriations costs that was passed in 1992, and given that then that program has been extended five times for 19 years. It is websites time for it to be irreversible, and it requires to be done currently and not nearer to the date of expiration in September.


The process takes a good while to function up a task and after that to get the investors accepted. And they do not desire their cash streaming via up until they have been accepted. And the specter of the expiry of this Regional Center Program in September is already preventing the development of projects.

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I would love to make clear that the Regional Center Program is not the same as the half-million-dollar point. The idea 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 reality that most of the regional facilities that are pooling financial investments have actually established those instead of high unemployment here are the findings or in backwoods where half- million-dollar investments are enabled, and that makes good sense.