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The program is placed in a very odd and non-helpful governmental area for the excitement of global investment in the United States. We are giving away too much for as well tiny of an investment.


The regional facilities, with their half-million schemes, essentially damaged the a lot more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them in any way, as they perform in Australia, must be regarding creating business entities, not easy investments. It ought to have to do with developing genuine work, not elaborate computations concerning the indirect development of tasks, which is currently part of the legislation.


Perhaps that is among the reasons that it has failed year after year to get to the legal goal of 10,000 financial investment visas. Fifth, the Regional Center Program is inherently clumsy, and the program is as well loaded with intermediaries, both public and exclusive. The program has greater than its share of scandals, which I will enter later on if anybody is interested.


This is a company that loves to say yes to applicants, however as the table in my testimony reveals, USCIS police officers have a lot more trouble with EB-5 applications than others. I believe that is something that no one has actually actually spoken about much. EB5 Regional Center Program. There are high prices of inner rejections in this program and for excellent reason

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Seventh, in this program visas go to people that can not obtain them differently and to people whose planned financial investment is in fact less, according to the Federal Book, than the ordinary mean internet worth of all American families in 2007. Let me broaden on one of my observations.


My estimate based upon the financiers' permit applications filed 2 years after the first investment-- these are the solid ones that continue to be and are accepted. This is 2009-- was that they had about $191 million confirmed-- that is my estimate. USCIS does not supply the type of information that we might use on this.


So for every single $100 of boosted foreign financial investment that year, the EB program contributed one cent. Under a a lot more shaky statistical base, the initial applications of potential immigrant financiers, USCIS is telling journalists that the degree of investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thank you for paying attention to me. I anticipate your comments and concerns. [The ready statement of David North looks like an entry for the record.] 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 practice team.




Divine acted as Chief Advise of the United States Citizenship and Immigration Solutions from July 2004 till November 2006, the year in which he was Acting Director, and afterwards Performing Deputy Director. He has functioned extensively with the EB-5 program in personal technique. He was elected, see it here as I recognize, vice president of the Organization to Purchase U.S.A., the nationwide industry association of regional centers.


Divine, we are pleased to have you right here. Please go in advance, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, BUY THE United States (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At many, if all 10,000 slots were utilized, it would be 1 percent of the immigration each year to the United States. It is not near that yet, but it is growing and getting towards that. Especially as USCIS, the company that oversees the program, has actually been making the guidelines more clear and the procedures much more sensible and clear for the individuals that are arranging financial investments and for the investors that are spending, more individuals have agreed and able to place effort and money into the procedure to find good jobs and develop them, and after that a lot more financiers have actually wanted to spend their money and take the risk and utilize the cash to visit this site right here create the tasks that is the factor of the program.

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These projects do not linger forever, and USCIS comprehends that and are attempting to speed the program, speed up the procedure - 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 pointed out


The local center part of the program is not. It belongs to an appropriations costs that was established in 1992, and ever since that program has been expanded five times for 19 years. It is time for it to be permanent, and it needs to be done currently and not nearer to the day of expiration in September.


The procedure takes an excellent while to develop a job and afterwards to obtain the investors approved. And they do not want their money flowing through until they have actually been authorized. And the specter of the expiration of this Regional Facility Program in September is already dissuading the growth of jobs.

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I would like pop over here to clear up that the Regional Center Program is not the very same as the half-million-dollar point. The concept of half a million or a million is a feature of the routine EB-5 regulation that belongs to the code. It just is a reality that a lot of the local centers that are merging investments have actually established those in places of high joblessness or in rural areas where fifty percent- million-dollar financial investments are enabled, which makes good sense.