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


The local centers, with their half-million systems, essentially undercut the much more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they carry out in Australia, should have to do with producing service entities, not easy investments. It must have to do with producing real work, not elaborate computations regarding the indirect development of tasks, which is now component of the regulation.


Perhaps that is one of the reasons why it has actually fallen short every year to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is as well loaded with middlemen, both public and private. The program has greater than its share of scandals, which I will enter later if any person is interested.


This is an agency that enjoys to state yes to candidates, but as the table in my statement reveals, USCIS police officers have far more problem with EB-5 applications than others. I believe that is something that nobody has truly talked about a lot. EB5 Regional Center Program. There are high prices of interior denials in this program and completely reason

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Seventh, in this program visas most likely to people that can not obtain them otherwise and to people whose planned investment is in fact much less, according to the Federal Book, than the typical mean total assets of all American households in 2007. Let me expand on among my monitorings.


My price quote based upon the capitalists' permit applications filed 2 years after the first financial investment-- these are the strong ones that stay and are accepted. This is 2009-- was that they had regarding $191 million verified-- that is my estimate. USCIS does not offer the sort of information that we could make use of on this.


For every $100 of raised international financial investment that year, the EB program contributed one cent. Under a a lot more wobbly analytical base, the initial applications of prospective immigrant investors, USCIS is telling reporters that the level of investment in the just-concluded year was concerning $1.2 billion. Let us approve that.

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Thanks for listening to me. I look ahead to your comments and inquiries. [The ready statement of David North looks like an entry for the record.] Chairman Leahy. Thank you. Our following witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's immigration practice group.




Divine worked as Chief Advice of the USA Citizenship and Migration Services from July 2004 up until November 2006, the year in which he was Performing Director, and then Acting Replacement Director. He has actually functioned thoroughly with the EB-5 program secretive practice. He was elected, as I understand, vice head of state of the Organization to Spend in U.S.A., the national market association of local.


Divine, we are happy to have you right here. Please proceed, sir. STATEMENT OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD check OF STATE, INVEST IN THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At the majority of, if all 10,000 ports were used, it would be 1 percent of the immigration annually to the United States. It is not near that yet, however it is expanding and getting toward that. Particularly as USCIS, the agency that looks after the program, has actually been making the regulations clearer and the processes more rational and clear for the individuals who are arranging financial investments and for the investors who are investing, more individuals have been eager and able to put initiative and cash right into the procedure to locate excellent projects and establish them, and after that more investors have actually wanted to invest their cash and take the risk and use the money to create the work that is the factor of the program.

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These jobs do not wait about permanently, and USCIS recognizes that and are trying to speed the program, speed the look at these guys process - EB5 Regional Center Program. That does not imply that they are unwinding their examination, and, actually, they prepare to deny applications that are not certifying. And they do so, as was discussed


The local facility component of the program is not. It belongs to an appropriations costs that was passed in 1992, and given that then that program has actually been prolonged five times for 19 years. It is time for it to be permanent, and it requires to be done currently and not nearer to the day of expiration in September.


The process takes an excellent while to function up a job and afterwards to obtain the investors approved. And they do not desire their money flowing via till they have been authorized. And the specter of the expiration of this Regional Center Program in September is currently inhibiting the development Get More Info of projects.

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I want to clear up 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 normal EB-5 regulation that belongs to the code. It simply is a reality that many of the local facilities that are merging financial investments have set those in places of high unemployment or in backwoods where fifty percent- million-dollar investments are allowed, and that makes sense.