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The program is put in a really odd and non-helpful bureaucratic area for the stimulation of worldwide financial investment in the United States. We are giving away as well much for too little of an investment.


The regional centers, with their half-million systems, 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, need to have to do with creating business entities, not easy financial investments. It must be concerning creating real tasks, not elaborate calculations regarding the indirect development of work, which is now part of the regulations.


Maybe that is one of the factors why it has actually failed year after year to reach the legal objective of 10,000 investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is also full of intermediaries, both public and private. The program has even more than its share of scandals, which I will certainly enter later on if anybody is interested.


This is a company that loves to say yes to candidates, yet as the table in my testimony reveals, USCIS police officers have far more problem with EB-5 applications than others. I think that is something that no one has actually truly chatted around a lot. EB5 Regional Center Program. There are high prices of internal denials in this program and permanently factor

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Seventh, in this program visas most likely to individuals that could not obtain them otherwise and to people whose planned financial investment is really less, according to the Federal Book, than the average mean net well worth of all American family members in 2007. Allow me broaden on one of my monitorings.


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


For every $100 of increased international investment that year, the EB program added one cent. Under a a lot more shaky analytical base, the first applications of would-be immigrant capitalists, USCIS is telling reporters that the degree of investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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Thank you for listening to me. I expect your comments and concerns. [The prepared declaration 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 head of the firm's migration technique team.




Divine functioned as Principal Advice of the United States Citizenship and Migration Providers from July 2004 up until November 2006, the year in which he was Performing Director, and afterwards Acting Replacement Supervisor. He has functioned extensively with the EB-5 program in exclusive method. He was elected, as I understand, vice head of state of the Association to Invest in United States, the nationwide industry organization of local.


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


At a lot of, if all 10,000 ports were used, it would certainly be 1 percent of the migration yearly to the USA. It is not near that yet, however it is expanding and getting towards that. Particularly as USCIS, the company that oversees the program, has been making the policies clearer and the procedures much more sensible and clear for individuals who are arranging financial investments and for the capitalists who are investing, more individuals have wanted and able to put effort and cash into the procedure to find great jobs and create them, and after that extra investors have been prepared to invest their money and take the danger and make use of the cash to develop the jobs that is the point of the program.

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These jobs do not wait around forever, and USCIS understands that visit this site and are attempting to speed up the program, speed the process - EB5 Regional Center Program. That does not indicate that they are unwinding their analysis, and, as a matter of fact, they prepare to reject applications that are not qualifying. And they do so, as was pointed out


The regional facility part of the program is not. It becomes part of an appropriations bill that was established in 1992, and ever since that program has actually been prolonged five times for 19 years. It link is time for it to be irreversible, and it requires to be done currently and not nearer to the date of expiry in September.


The process takes a good while to work up a project and afterwards to obtain the capitalists approved. And they do not desire their money flowing via until they have been accepted. And the specter of the expiry of this Regional Facility Program in September is currently discouraging the view publisher site development of tasks.

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I wish to clarify that the Regional Center Program is not the very 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 belongs to the code. It just is a fact that most of the regional facilities that are merging investments have set those in areas of high joblessness or in country locations where fifty percent- million-dollar financial investments are permitted, and that makes good sense.