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The program is positioned in a very strange and non-helpful governmental place for the stimulation of worldwide investment in the United States. We are giving away as well much for also tiny of a financial investment.


The local centers, with their half-million systems, basically damaged the much more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they do in Australia, need to be concerning creating business entities, not passive financial investments. It should have to do with producing real tasks, not clarify computations about the indirect creation of work, which is currently part of the legislation.


Maybe that is one of the factors why it has failed time after time to get to the legal goal of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is as well full of middlemen, both public and private. The program has greater than its share of scandals, which I will get involved in later if anybody is interested.


This is a company that enjoys to state yes to candidates, however as the table in my testament reveals, USCIS policemans have far more trouble with EB-5 applications than others. I believe that is something that no one has actually spoken about much. EB5 Regional Center Program. There are high rates of interior rejections in this program and for good reason

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Seventh, in this program visas most likely to people that could not get them any type of other way and to individuals whose organized investment is actually much less, according to the Federal Get, than the average mean total assets of all American families in 2007. Allow me broaden on among my monitorings.


My price quote based upon the financiers' eco-friendly card applications submitted 2 years after the first investment-- these are the solid ones that remain and are authorized. This is 2009-- was that they had regarding $191 million verified-- that is my estimate. USCIS does not provide the kind of data that we can utilize on this.


So for every single $100 of increased international investment that year, the EB program contributed one dime. Under a far more shaky statistical base, the initial applications of would-be immigrant capitalists, USCIS is informing reporters that the level 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 anticipate your comments and questions. [The ready declaration of David North shows up as 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 firm's migration practice group.




Divine offered as Principal Guidance of the USA Citizenship and Immigration Providers from July 2004 till November 2006, the year in which he was Performing Director, and afterwards Performing Replacement Supervisor. He has actually worked extensively with the EB-5 program secretive practice. He was elected, as I recognize, vice president of the Organization to Purchase USA, the national market organization of regional centers.


DECLARATION OF ROBERT C. DIVINE, LAWYER, 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 the majority of, if all 10,000 ports were used, it would certainly be 1 percent of the immigration annually to the United States. It is not near that yet, yet it is growing and obtaining toward that. Especially as USCIS, the firm that looks after the program, has been making the rules more clear and the processes more rational and clear for individuals that are arranging investments and for the capitalists who are investing, even more individuals have agreed and able to put initiative and cash into the process to locate good tasks and establish them, and afterwards extra financiers have agreed to invest their money and take the risk and utilize the cash to produce the work that is the point of the program.

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These jobs do not wait around for life, and USCIS understands that and are attempting to speed the program, speed the process - EB5 Regional Center Program. That does not suggest that they are unwinding their scrutiny, and, as a matter of fact, they are all set to reject applications that are not qualifying. And they do so, as was pointed out


The local facility part of the program is not. It is component of an appropriations costs that was passed in 1992, and given that then that program has actually been extended 5 times for 19 years. It is time for it to be long-term, and it requires to be done now and not nearer to the date of expiry in September.


The procedure takes a good while to develop a job and then to get the capitalists approved. And they do not want their money moving via till they have actually been approved. And the specter of the expiry of this Regional Center Program in September click here is currently dissuading the advancement of jobs.

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I would love to make clear 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 feature of the normal EB-5 legislation that becomes part of the code. It just is a truth that the majority of the local centers that are pooling investments have actually set those in places of high unemployment or in backwoods where fifty percent- million-dollar investments are enabled, and that makes good sense.