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The program is put in a very odd and non-helpful administrative location for the stimulation of global investment in the United States. We are providing away as well much for as well little of a financial investment.

The regional centers, with their half-million schemes, essentially undercut the extra reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, ought to be about producing organization entities, not passive investments. It ought to have to do with developing real tasks, not specify estimations regarding the indirect creation of tasks, which is currently component of the regulation.


Maybe that is one of the reasons why it has actually failed time after time to get to the legal objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is too full of intermediaries, both public and personal. The program has greater than its share of rumors, which I will enter into later on if anyone is interested.


This is a company that loves to state yes to candidates, yet as the table in my statement reveals, USCIS policemans have a lot more trouble with EB-5 applications than others. I think that is something that no one has truly discussed much. EB5 Regional Center Program. There are high prices of internal rejections in this program and permanently reason

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Seventh, in this program visas go to people that can not obtain them differently and to people whose organized financial investment is in fact less, according to the Federal Reserve, than the ordinary mean total assets of all American families in 2007. Allow me expand on one of my monitorings.


My price quote based upon the capitalists' copyright applications submitted 2 years after the very first financial investment-- these are the solid ones that stay and are accepted. This is 2009-- was that they had concerning $191 million confirmed-- that is my estimate. USCIS does not supply the kind of information that we might utilize on this.


So for every $100 of boosted international financial investment that year, the EB program contributed one dime. Under a a lot more wobbly analytical base, the initial applications of prospective immigrant financiers, USCIS is telling journalists that the level of investment in the just-concluded year had to do with $1.2 billion. Let us accept here that.

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Thank you for listening to me. I look ahead to your comments and questions. [The prepared statement of David North looks like an entry for the record.] Chairman Leahy. Thanks. Our following witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's immigration technique team.

Divine worked as Principal Advice of the United States Citizenship and Migration Solutions from July 2004 up until November 2006, the year in which he was Acting Supervisor, and after that Performing Deputy Supervisor. He has worked thoroughly with the EB-5 program secretive practice. He was chosen, as I comprehend, vice head of state of the Organization to Purchase USA, the national sector organization of local centers.


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


At many, if all 10,000 slots were utilized, it would certainly be 1 percent of the immigration yearly to the USA. It is not near that yet, yet it is growing and getting towards that. Especially as USCIS, the firm that oversees the program, has actually been making the regulations more clear and the processes much more sensible and clear for the individuals that are arranging financial investments and for the capitalists that are investing, even more individuals have actually agreed and able to put effort and money into the process to discover great jobs and develop them, and afterwards a lot more capitalists have wanted to invest their cash and take the risk 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 linger forever, and USCIS recognizes that and are attempting to speed the program, speed the procedure - EB5 Regional Center Program. That does not indicate that they are relaxing their scrutiny, and, actually, they prepare to reject applications that are not qualifying. And they do so, as was stated

The local facility part of the program is not. It is part of an appropriations bill 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 requires to be done now and not nearer to the date of expiry in September.


The procedure takes an excellent while to work up a task and after that to obtain the investors approved. And they do not want their cash moving through up until they have actually been accepted. And the specter of the expiry of this Regional Center Program in September is already preventing the advancement of jobs.

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I would love to make clear that the Regional Facility Program is not the same as the half-million-dollar thing. The concept of half a million or a million is a function of the routine EB-5 law that belongs to the code. It just is a truth that a lot of the local centers that are merging financial investments have actually set those instead of high unemployment or in rural locations where fifty percent- million-dollar investments are enabled, and that makes feeling.