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The program is placed in an extremely weird and non-helpful governmental area for the stimulation of global investment in the United States. We are offering away as well much for as well little of a financial investment.


The regional centers, with their half-million schemes, basically undercut the more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, should be concerning producing organization entities, not passive financial investments. It must have to do with creating genuine jobs, not elaborate estimations concerning the indirect development of tasks, which is currently component of the legislation.


Perhaps that is one of the factors why it has actually stopped working year after year to get to the legislative goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is as well loaded with intermediaries, 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 company that enjoys to state yes to applicants, however as the table in my statement shows, USCIS officers have far more difficulty with EB-5 applications than others. I think that is something that nobody has actually actually spoken about much. EB5 Regional Center Program. There are high rates of inner denials in this program and for good reason

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Seventh, in this program visas go to people who can not get them any kind of various other means and to individuals whose organized financial investment is actually much less, according to the Federal Reserve, than the typical mean total assets of all American family members in 2007. Allow me expand on among my monitorings.


My price quote based on the investors' copyright applications filed 2 years after the initial financial investment-- these are the solid ones that remain and are approved. This is 2009-- was that they had about $191 million confirmed-- that is my estimate. USCIS does not give the sort of information that we might use on this.


For every $100 of boosted international investment that year, the EB program contributed one penny. Under a far more wobbly analytical base, the preliminary applications of potential immigrant investors, USCIS is telling reporters that the level of investment in the just-concluded year was regarding $1.2 billion. Let us approve that.

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Thanks for listening to me. I expect your comments and concerns. [The ready declaration of David North looks like a submission for the record.] 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 migration practice group.




Divine acted as Principal Advice of the United States Citizenship and Migration Services from July 2004 till November 2006, the year in which he was Performing Director, and then Performing Deputy Supervisor. He has worked extensively with the EB-5 program secretive method. click reference He was chosen, as I comprehend, vice president of the Organization to Invest in U.S.A., the nationwide sector association of local.


DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, INVEST IN THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At many, if all 10,000 slots were used, it would be 1 percent of the migration annually to the United States. It is not near that yet, yet it is expanding and obtaining toward that. Specifically as USCIS, the company that looks after the program, has been making the rules clearer and the procedures a lot more rational and clear for the individuals who are arranging financial investments and for the capitalists who are spending, even more individuals have agreed and able to place initiative and money right into the process to discover good projects and create them, and after that extra investors have actually wanted to invest their money and take the threat and use the cash to create the work that is the point of the program.

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These tasks do not linger permanently, and USCIS comprehends that and are trying to speed up the program, speed up the process - EB5 Regional Center Program. That does not suggest that they are unwinding their scrutiny, and, as a matter of fact, they prepare to refute applications that are not qualifying. And they do so, as was discussed


The local center component of the program is not. It belongs to an appropriations costs that was established in 1992, and ever since that program has actually been extended five times for 19 years. It is time for it to be permanent, and it requires to be done now and not nearer to the view website date of expiry in September.


The process takes an excellent while to work up a task and after that to obtain the capitalists authorized. And they do not want their cash flowing through up until they have actually been authorized. And the specter of the expiration of this Regional Facility Program in September is already discouraging the advancement of jobs.

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I wish to make clear that the Regional Facility Program is not the like the half-million-dollar point. The idea of half a million or a million is a function of the routine EB-5 legislation that becomes part of the code. It just is a reality that the majority of the regional facilities that are pooling financial investments have actually established those in areas of high joblessness or in country locations where fifty percent- million-dollar investments are check that allowed, and that makes good sense.