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The program is positioned in an extremely odd and non-helpful bureaucratic location for the stimulation of global financial investment in the United States. We are offering away also much for also tiny of an investment.


The regional centers, with their half-million systems, basically damaged the more practical million-dollar part of the EB-5 program. Third, such programs, if we have them in all, as they perform in Australia, should have to do with creating organization entities, not passive investments. It should be about creating actual jobs, not elaborate estimations concerning the indirect development of tasks, which is currently part of the legislation.


Perhaps that is among the reasons that it has fallen short time after time to reach the legal goal of 10,000 investment visas. Fifth, the Regional Center Program is naturally clumsy, and the program is too full of intermediaries, both public and exclusive. The program has greater than its share of scandals, which I will certainly get involved in later on if anyone is interested.


This is an agency that likes to state yes to applicants, yet as the table in my statement reveals, USCIS officers have a lot a lot more problem with EB-5 applications than others. I think that is something that nobody has actually really discussed much. EB5 Regional Center Program. There are high rates of internal rejections in this program and completely factor

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Seventh, in this program visas most likely to individuals who could not get them differently and to people whose planned investment is really less, according to the Federal Reserve, than the average mean internet worth of all American family members in 2007. Let me expand on one of my observations.


My estimate based on the investors' permit applications filed 2 years after the first financial investment-- these are the solid ones that stay and are accepted. This is 2009-- was that they had about $191 million verified-- that is my quote. USCIS does not offer the kind of information that we might utilize on this.


For every $100 of enhanced foreign financial investment that year, the EB program contributed one cent. Under a far more shaky analytical base, the first applications of potential immigrant investors, USCIS is informing journalists that the degree of investment in the just-concluded year was concerning $1.2 billion. Let us approve that.

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Thanks for listening to me. I look ahead to your comments and questions. [The ready statement of David North looks like an entry for the document.] Chairman Leahy. Thanks. 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 migration practice group.




Divine worked as Chief Counsel of the try these out USA Citizenship and Immigration Services from July 2004 up until November 2006, the year in which he was Performing Supervisor, and then Performing Replacement Supervisor. He has worked thoroughly with the EB-5 program in private method. He was chosen, as I recognize, vice president of the Association to Buy U.S.A., the national market association of local facilities.


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


At many, if all 10,000 slots were made use of, it would certainly be 1 percent of the immigration each year to the United States. It is not near that yet, yet it is browse around this site expanding and obtaining towards that. Especially as USCIS, the company that supervises the program, has been making the guidelines clearer and the processes much more reasonable and clear for individuals that are arranging investments and for the financiers that are spending, more people have been willing and able to put effort and money into the process to find good projects and develop them, and after that extra investors have actually wanted to invest their cash and take the threat and make use of the cash to develop the jobs that is the point of the program.

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These projects do not linger for life, and USCIS comprehends that and are trying to speed up the program, speed the process - EB5 Regional Center Program. That does not mean that they are relaxing their scrutiny, and, in truth, they are prepared to reject applications that are not qualifying. And they do so, as was stated


The local center part of the program is not. It becomes part of an appropriations expense that was established in 1992, and ever since that program has been extended five times for 19 years. It is time for it to be long-term, and it requires to be done currently and not nearer to the day of expiry in September.


The process takes a good while to function up a job and afterwards to obtain the financiers approved. And they do not want their money streaming with up until they have actually been authorized. And the specter of the expiry of this Regional Facility Program in September is already preventing the advancement of jobs.

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I want to clear up that the Regional Center Program is not the same as the half-million-dollar point. The concept of half a million or a million is a function of the regular EB-5 legislation that belongs to the code. It simply is a truth that the majority of the local facilities that are pooling financial investments have set this content those in places of high joblessness or in country areas where fifty percent- million-dollar investments are enabled, and that makes feeling.