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The program is placed in a really strange and non-helpful administrative area for the stimulation of global investment in the United States. We are offering away too much for too small of an investment.


The regional facilities, with their half-million plans, essentially undercut the a lot more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them whatsoever, as they carry out in Australia, ought to have to do with developing organization entities, not passive investments. It should be about creating genuine tasks, not clarify estimations concerning the indirect creation of tasks, which is now component of the legislation.


Maybe that is just one of the reasons that it has actually fallen short time after time to get to the legal goal of 10,000 investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is also filled up with intermediaries, both public and private. The program has greater than its share of scandals, which I will certainly get into later on if anybody is interested.


This is a company that likes to claim yes to candidates, however as the table in my statement reveals, USCIS officers have far more problem with EB-5 applications than others. I think that is something that nobody has really spoken about much. EB5 Regional Center Program. There are high prices of internal denials in this program and completely factor

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Seventh, in this program visas go to individuals who can not get them otherwise and to people whose scheduled investment is in fact much less, according to the Federal Book, than the average mean total assets of all American family members in 2007. Allow me increase on one of my observations.


My estimate based on the investors' permit applications submitted 2 years after the very first financial investment-- these are the strong ones that stay and are approved. This is 2009-- was that they had concerning $191 million validated-- that is my quote. USCIS does not supply the sort of data that we might make use of on this.


So for each $100 of enhanced international financial investment that year, the EB program contributed one dime. Under a a lot more wobbly analytical base, the first applications of would-be immigrant capitalists, USCIS is telling reporters that the level of investment in the just-concluded year had to do with $1.2 billion. Let us approve that.

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Thank you for paying attention to me. I look onward to your comments and questions. visite site [The ready declaration of David North looks like a submission for the document.] 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 migration technique group.




Divine served as Principal Counsel of the United States Citizenship and Migration Providers from July 2004 until November 2006, the year in which he was Acting Director, and after that Acting Deputy Director. He has actually functioned extensively with the EB-5 program secretive practice. He was elected, as I understand, vice head of state of the Organization to Invest in U.S.A., the national sector association of regional.


STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At many, if all 10,000 slots were utilized, it would certainly be 1 percent of the migration yearly to the United States. It is not near that yet, but it is growing and getting toward that. Particularly as USCIS, the agency that supervises the program, has been making the rules clearer and the processes a lot more sensible and clear for the people who are organizing investments and for the capitalists that are spending, even more individuals have actually wanted and able to place effort and money right into the procedure to locate excellent projects and develop them, and afterwards much more financiers have actually agreed to invest their money and take the danger and utilize the money to produce the tasks that is the point of the program.

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These jobs do not linger permanently, and USCIS understands that and are attempting to speed the program, speed up the process - EB5 Regional Center Program. That does not indicate that they are relaxing their scrutiny, and, as a matter of fact, they are prepared to refute applications that are not qualifying. And they do so, as was mentioned


The regional facility component of the program is not. It becomes part of an appropriations bill that was passed in 1992, and given that then that program has been extended five times for 19 years. It is time for it to be irreversible, and it requires to be done currently and not nearer to the day of expiry in September.


The procedure takes an excellent while to more information function up a job and after that to obtain the capitalists accepted. And they do not want their money flowing redirected here through up until they have been authorized. 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 want to clarify 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 simply is a truth that most of the local facilities that are pooling investments have established those instead of high unemployment or in country locations where half- million-dollar financial investments are permitted, and that makes feeling.