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The program is put in a very weird and non-helpful administrative area for the excitement of international financial investment in the United States. We are offering away also much for also tiny of an investment.


The regional centers, with their half-million schemes, essentially undercut the extra sensible million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, must have to do with developing company entities, not passive financial investments. It ought to have to do with producing actual tasks, not clarify computations concerning the indirect production of jobs, which is now part of the regulation.


Probably that is among the reasons that it has actually failed every year to get to the legal goal of 10,000 investment visas. Fifth, the Regional Facility Program is naturally awkward, and the program is as well loaded with intermediaries, both public and private. The program has greater than its share of scandals, which I will enter into later if anyone is interested.


This is an agency that loves to claim yes to candidates, however as the table in my testament shows, USCIS police officers have a lot more difficulty with EB-5 applications than others. I think that is something that nobody has really spoken about a lot. EB5 Regional Center Program. There are high prices of internal denials in this program and completely reason

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Seventh, in this program visas most likely to individuals that could not get them any type of other way and to individuals whose organized financial investment is actually less, according to the Federal Get, than the typical mean internet well worth of all American family members in 2007. Allow me increase on one of my monitorings.


My estimate based upon the financiers' eco-friendly card applications filed 2 years after the first investment-- these are the solid ones that continue to be and are authorized. This is 2009-- was that they had concerning $191 million validated-- that is my quote. USCIS does not provide the sort of information that we might make use of on this.


For every $100 of raised international financial investment that year, the EB program added one cent. Under a far more shaky statistical base, the preliminary applications of would-be immigrant financiers, USCIS is telling reporters that the degree of financial investment in the just-concluded year had to do with $1.2 billion. Let us approve that.

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Thanks for listening to me. I eagerly anticipate your comments and concerns. [The ready statement of David North looks like a submission for the document.] 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 company's migration technique group.




Divine offered as Principal Counsel of the United States Citizenship and Migration Solutions from July 2004 up until November 2006, the year in which he was Acting Director, and afterwards Acting Deputy Supervisor. He has actually worked extensively with the EB-5 program secretive technique. He was elected, as I recognize, vice president of the Organization to Purchase USA, the national sector association of regional facilities.


Divine, we are happy to have you here. Please proceed, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, BUY THE USA (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thank you for having me.


At a lot of, if all 10,000 ports were used, it would be 1 percent of the migration yearly to the United States. It is not near that yet, but it is growing and obtaining towards that. Particularly as USCIS, the company that looks after the program, has been making the regulations clearer and the procedures more reasonable and clear for the individuals that are arranging investments and for the financiers that are investing, even more people have actually been willing and able to put effort and money right into the process to find excellent tasks and develop them, and here afterwards a lot more investors have actually agreed to spend their cash and take the risk and utilize the cash to develop the work that is the point of the program.

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These projects do not wait around for life, and USCIS recognizes that and are trying to speed up the program, speed up the process - EB5 Regional Center Program. That does not mean that they are relaxing their examination, and, as a matter of fact, they are prepared to refute applications that are not qualifying. And they do so, as was stated


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


The process takes a great while to develop a task and afterwards to get the capitalists accepted. And they do not want their money streaming with till they have actually been authorized. And the specter of the expiry of this Regional Facility Program in September is already dissuading the advancement of projects.

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I would certainly such as to clear up that the Regional Center 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 law that belongs to the code. It just is a truth that a lot of the regional facilities that are merging financial investments have set those in areas of high joblessness or in country areas where half- million-dollar investments are enabled, which makes good sense.