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The program is put in a very strange and non-helpful administrative location for the stimulation of global investment in the United States. We are providing away too much for also tiny of an investment.

The regional centers, with their half-million systems, basically undercut the much more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them in all, as they perform in Australia, ought to have to do with creating service entities, not passive investments. It should be about producing actual work, not clarify estimations regarding the indirect production of tasks, which is now component of the legislation.


Maybe that is just one of the reasons it has fallen short time after time to reach the legal goal of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is as well full of intermediaries, both public and personal. The program has greater than its share of scandals, which I will get involved in later if anyone is interested.


This is an agency that enjoys to state yes to candidates, yet as the table in my testament shows, USCIS policemans have far more difficulty with EB-5 applications than others. I believe that is something that no one has actually really spoken about much. EB5 Regional Center Program. There are high rates of interior rejections in this program and permanently factor

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Seventh, in this program visas most likely to individuals that might not obtain them otherwise and to individuals whose organized financial investment is really much less, according to the Federal Reserve, than the typical mean total assets of all American families in 2007. Allow me increase on among my observations.


My price quote based upon the capitalists' permit applications filed 2 years after the first financial investment-- these are the strong ones that continue to be and are authorized. This is 2009-- was that they had about $191 million confirmed-- that is my quote. USCIS does not supply the sort of information that we could use on this.


For every $100 of enhanced foreign investment that year, the EB program added one cent. Under a much more shaky analytical base, the preliminary applications of would-be immigrant capitalists, USCIS is informing reporters that the level of financial investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thank you for listening to me. I anticipate your remarks and questions. [The prepared declaration of David North looks like an entry for the record.] Chairman Leahy. Thanks. Our next witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's immigration practice group.

Divine worked as Chief Counsel of the United States Citizenship and Immigration Solutions from July 2004 until November 2006, the year in which he was Performing Supervisor, and after that Performing Deputy Supervisor. He has functioned thoroughly with the EB-5 program secretive practice. He was elected, as I recognize, vice president of the Association to Purchase United States, the nationwide industry organization of regional centers.


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


At the majority of, if all 10,000 ports were utilized, it would be 1 percent of the migration yearly to the United States. It is not near that yet, however it is expanding and obtaining towards that. Specifically as USCIS, the company that manages the program, has actually been making the policies more clear and the processes much more sensible and clear for the individuals that are arranging investments and for the financiers who are spending, more people have actually wanted and able to place effort and money right into the process to discover great jobs and develop them, and after that more capitalists have actually wanted to invest their cash and take the danger and utilize the money to produce the jobs that is the point of the program.

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These jobs do not wait about permanently, and USCIS comprehends that and are trying to speed the program, speed up the procedure - EB5 Regional Center Program. That does not mean that they are unwinding their scrutiny, and, in truth, they are prepared to refute applications that are not qualifying. And they do so, as was mentioned

The regional center component of the program click here is not. It becomes part of an appropriations bill that was enacted in 1992, and considering that then that program has been expanded five times for 19 years. It is time for it to be irreversible, and it needs to be done currently and not nearer to the date of expiration in September.


The procedure takes a great while to develop a job and after that to obtain the capitalists accepted. And they do not want their cash moving via till they have actually been accepted. And the specter of the expiration of this Regional Facility Program in September is already dissuading the growth of tasks.

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I would certainly like to clarify that the Regional Facility Program is not the like the half-million-dollar thing. The concept of half a million or a million is a function of the regular EB-5 law that belongs to the code. It just is a fact that the majority of the local centers that are merging financial investments have actually established those instead of high joblessness or in rural locations where fifty percent- million-dollar investments are allowed, which makes good sense.