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The program is put in a really strange and non-helpful bureaucratic location for the excitement of worldwide financial investment in the United States. We are providing away as well much for too tiny of a financial investment.


The regional centers, with their half-million schemes, essentially damaged the much more reasonable million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they do in Australia, ought to have to do with producing organization entities, not passive financial investments. It must be concerning producing genuine work, not elaborate calculations about the indirect creation of work, which is currently part of the regulation.


Possibly that is among the reasons why it has fallen short time after time to get to the legal objective of 10,000 investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is as well full of intermediaries, both public and exclusive. The program has more than its share of scandals, which I will enter later if anybody is interested.


This is a company that likes to claim yes to applicants, but as the table in my testimony reveals, USCIS police officers have a lot more trouble with EB-5 applications than others. I think that is something that nobody has truly discussed much. EB5 Regional Center Program. There are high prices of inner rejections in this program and completely reason

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Seventh, in this program visas go to individuals that could not get them differently and to people whose planned investment is really much less, according to the Federal Reserve, than the average mean total assets of all American households in 2007. Let me expand on one of my monitorings.


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


For every $100 of increased international investment that year, the EB program added one penny. Under a much a lot more shaky statistical base, the initial applications of potential immigrant investors, USCIS is informing journalists that the level of investment in the just-concluded year was regarding $1.2 billion. Allow us accept that.

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Thanks for paying attention to me. I eagerly anticipate your remarks and questions. [The prepared statement of David North appears as an entry for the document.] 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 firm's immigration technique team.




Divine acted as Principal Guidance of the USA Citizenship and Immigration Solutions from July 2004 till November 2006, the year in which he was Acting Supervisor, and afterwards Performing Deputy Supervisor. He has actually functioned thoroughly with the EB-5 program in personal technique. He you could look here was elected, as I comprehend, vice head of state of the Organization to Buy United States, the national industry association of regional centers.


Divine, we are delighted to have you here. Please proceed, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE U.S.A. (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At many, if all 10,000 ports were used, it would certainly be 1 percent of the migration annually to the United States. It is not near that yet, but it is growing and getting toward that. Especially as USCIS, the firm that looks after the program, has actually been making the regulations more clear and the procedures a lot more reasonable and clear for individuals that are arranging investments and for the financiers who are spending, even more people have agreed and able to place effort and cash right into the process to find good projects and create them, and afterwards extra investors have been eager to spend their cash and take the risk and make use of the cash to develop the tasks that is the point of the program.

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These jobs do not linger for life, and USCIS understands that and are trying to speed the program, speed up the procedure - EB5 Regional Center Program. That does not indicate that they are relaxing their scrutiny, and, in fact, they are ready to refute applications that are not qualifying. And they do so, as was mentioned


The regional anonymous center part of the program is not. It becomes part of an appropriations costs that was enacted in 1992, and ever since that program has been prolonged 5 times for 19 years. It is time for it to be irreversible, and it requires to be done currently and not nearer to the date of expiration in September.


The process takes a great while to function up a job and then to get the investors accepted. And pop over to this site they do not desire their cash streaming through until they have actually been authorized. And the specter of the expiration of this Regional Center Program in September is currently discouraging the development of tasks.

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I would such as to clear up 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 normal EB-5 law that is component of the code. It just is a truth that the majority of the local facilities that are pooling financial investments have actually established those in areas of high joblessness or in backwoods where half- million-dollar financial investments are allowed, which makes sense.