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The program is put in a really odd and non-helpful governmental area for the excitement of international investment in the United States. We are giving away also much for too small of a financial investment.


The local centers, with their half-million systems, essentially undercut the a lot more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they perform in Australia, must have to do with developing company entities, not passive investments. It ought to have to do with developing real jobs, not elaborate estimations regarding the indirect creation of jobs, which is now component of the regulations.


Possibly that is just one of the reasons it has stopped working time after time to get to the legislative objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently clumsy, and the program is also loaded with middlemen, both public and private. The program has even more than its share of scandals, which I will get involved in later on if any person is interested.


This is an agency that loves to state yes to applicants, however as the table in my statement reveals, USCIS policemans have much extra trouble with EB-5 applications than others. I believe that is something that no one has actually truly spoken about much. EB5 Regional Center Program. There are high prices of inner rejections in this program and forever reason

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Seventh, in this program visas go to people that might not get them differently and to individuals whose planned investment is actually less, according to the Federal Reserve, than the typical mean total assets of all American family members in 2007. Let me expand on among my observations.


My estimate based upon the investors' environment-friendly card applications filed 2 years after the initial investment-- these are the solid ones that stay and are authorized. This is 2009-- was that they had about $191 million verified-- that is my quote. USCIS does not supply the sort of information that we could make use of on this.


So for every $100 of enhanced foreign financial investment that year, the EB program added one penny. Under a much a lot more wobbly analytical base, the initial applications of potential immigrant capitalists, USCIS is informing reporters that the level 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 listening to me. I eagerly anticipate your remarks and questions. [The ready declaration of David click for more North shows up as a submission for the record.] Chairman Leahy. Thanks. Our next witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's migration method group.




Divine served as Chief Counsel of the USA Citizenship and Migration Services from July 2004 until November 2006, the year in which he was Performing Director, and then Performing Replacement Director. He has functioned extensively with the EB-5 program in personal method. He was chosen, as I comprehend, vice head of state of the Organization to Buy USA, the national industry association of regional centers.


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


At a lot of, if all 10,000 slots were utilized, it would be 1 percent of the migration every year to the USA. It is not near that yet, but it is growing and obtaining towards that. Specifically as USCIS, the firm that manages the program, has actually been making the regulations more clear and the processes much more rational and clear for individuals who are organizing investments and for the capitalists that are spending, even more people have actually wanted and able to place initiative and money right into the process to discover excellent jobs and develop them, and after that more capitalists have agreed to spend their cash look these up and take the risk and make use of the cash to create the tasks that is the factor of the program.

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These projects do not wait about forever, and USCIS understands that and are trying to speed up the program, speed the process - EB5 Regional Center Program. That does not mean that they are relaxing their analysis, and, actually, they prepare to refute applications that are not certifying. And they do so, as was discussed


The regional facility component of the program is not. It is part of an appropriations expense that was established in 1992, and ever since that program has been prolonged 5 times for 19 years. It is time for it to be permanent, and it needs to be done now and not nearer to the day of expiration in September.


The procedure takes a good while to develop a project and afterwards to obtain the investors authorized. And they do not want their cash streaming through up until they have been accepted. And the specter of the expiry of this Regional Center Program in September is currently dissuading the advancement of projects.

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I wish to clarify that the Regional Center Program is not the like the half-million-dollar thing. The concept of half a million or a million is a feature of the normal EB-5 law that is component of the code. It just this hyperlink is a reality that most of the regional facilities that are pooling financial investments have actually established those in areas of high joblessness or in country locations where half- million-dollar investments are enabled, which makes good sense.