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The program is put in a really strange and non-helpful governmental place for the excitement of worldwide financial investment in the United States. We are providing away too much for also small of an investment.


The regional centers, with their half-million schemes, basically undercut the extra practical million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, need to have to do with creating service entities, not passive financial investments. It should be concerning producing real tasks, not elaborate estimations concerning the indirect production of tasks, which is currently component of the regulations.


Perhaps that is just one of the reasons why it has actually stopped working time after time to get to the legislative goal of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is as well loaded with middlemen, both public and personal. The program has even more than its share of scandals, which I will certainly get involved in later on if anyone is interested.


This is a firm that enjoys to state yes to candidates, yet as the table in my statement shows, USCIS policemans have far more trouble with EB-5 applications than others. I assume that is something that no one has truly discussed a lot. EB5 Regional Center Program. There are high rates of inner rejections in this program and for good reason

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Seventh, in this program visas go to individuals who can not get them any type of other method and to individuals whose planned financial investment is really less, according to the Federal Book, than the typical mean total assets of all American households in 2007. Let me broaden on among my observations.


My quote based on the investors' permit applications filed 2 years after the first financial investment-- these are the strong ones that continue to be and are approved. This is 2009-- was that they had concerning $191 million confirmed-- that is my quote. USCIS does not give the kind of information that we can utilize on this.


So for every $100 of raised international investment that year, the EB program contributed one dime. Under a much a lot more shaky statistical base, the preliminary applications of would-be immigrant capitalists, USCIS is informing journalists that the level of financial investment in the just-concluded year was regarding $1.2 billion. Allow us approve that.

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Thank you for listening to me. I expect your comments and questions. [The ready declaration of David North looks like a submission 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 company's immigration method team.




Divine acted as Principal Counsel of the USA Citizenship and Immigration Services from July 2004 until November 2006, the year in which he was Performing Director, and then Performing Replacement Director. He has actually functioned thoroughly with the EB-5 program in exclusive practice. He was elected, as I understand, vice head of state of the Association to Buy U.S.A., the national industry association of regional facilities.


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


At many, if all 10,000 slots were used, it would be 1 percent of the immigration every year to the USA. It is not near that yet, however it is expanding and getting toward that. Particularly as USCIS, the firm that supervises the program, has been making the regulations more clear and the processes more logical and clear for individuals who are organizing investments and for the financiers that are spending, even more people have agreed and able to put effort and money into the procedure to discover excellent projects and establish them, and afterwards a lot more investors have actually wanted to spend their cash and take the danger and use the cash to produce the jobs that is the factor of the program.

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These jobs do not linger for life, and USCIS comprehends that and are attempting to speed 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 ready to deny applications that are not certifying. And they do so, as was discussed


The regional center click here part of the program is not. It belongs to an appropriations expense that was enacted in 1992, and considering that then that program has actually been extended 5 times for 19 years. It is time for it to be permanent, and it requires to be done currently and not nearer to the date of expiration in September.


The process takes a good while to work up a task and after that to get the investors approved. And they do not want their money streaming with till they have been approved. And the specter of the expiry of this Regional Center Program in September is already inhibiting the advancement of projects.

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I would love to make clear that the Regional Facility Program is not the exact same as the half-million-dollar point. The concept of half a million or a million is a function of the normal EB-5 legislation that is part of the code. It just is a reality that a lot of the regional centers that are merging financial investments have actually established those instead of high joblessness or in backwoods where fifty percent- million-dollar financial investments are enabled, and that makes good sense.