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The program is positioned in a really odd and non-helpful administrative location for the stimulation of worldwide financial investment in the United States. We are offering away too much for also small of an investment.


The local facilities, with their half-million systems, basically undercut the extra practical million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, ought to have to do with developing service entities, not passive investments. It needs to have to do with creating actual tasks, not clarify computations concerning the indirect development of tasks, which is currently part of the legislation.


Probably that is just one of the reasons it has actually stopped working every year to get to the legislative objective of 10,000 investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is too full of intermediaries, both public and exclusive. The program has more than its share of scandals, which I will enter into later if anyone is interested.


This is a company that enjoys to claim yes to candidates, but as the table in my testament reveals, USCIS policemans have a lot a lot more difficulty with EB-5 applications than others. I think that is something that no one has actually actually talked around a lot. EB5 Regional Center Program. There are high rates of inner rejections in this program and forever factor

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Seventh, in this program visas most likely to individuals that might not obtain them differently and to people whose organized investment is really less, according to the Federal Get, than the ordinary mean total assets of all American family members in 2007. Allow me expand on one of my monitorings.


My price quote based on the investors' permit applications filed 2 years after the initial financial investment-- these are the strong ones that remain and are approved. This is 2009-- was that they had about $191 million confirmed-- that is my price quote. USCIS does not supply the kind of data that we might make use of on this.


So for every single $100 of boosted foreign financial investment that year, the EB program added one dime. Under a a lot more wobbly statistical base, the first applications of potential immigrant capitalists, USCIS is telling journalists that the degree of financial investment in the just-concluded year had to do look at here with $1.2 billion. Allow us approve that.

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Thanks for listening to me. I look onward to your comments and inquiries. [The ready statement of David North looks like an entry for the document.] Chairman Leahy. Thank you. Our next witness is Robert Divine. He is a shareholder of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the firm's migration practice group.




Divine worked as Principal Advice of the United States Citizenship and Immigration Solutions from July 2004 up until November 2006, the year in which he was Acting Supervisor, and after that Performing Replacement Director. He has actually functioned extensively with the EB-5 program secretive technique. He was elected, as I comprehend, vice head of state of the Association to Spend in U.S.A., the nationwide sector association of regional.


Divine, we are delighted to have you right here. Please proceed, sir. STATEMENT OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE United States (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Senator Grassley, and others. Thanks for having me.


At the majority of, if all 10,000 slots were made use of, it would be 1 percent of the immigration every year to the USA. It is not near that yet, yet it is growing and getting you can find out more towards that. Especially as USCIS, the firm that supervises the program, has been making the guidelines clearer and the processes a lot more rational and clear for the individuals who are arranging investments and for the financiers who are spending, more people have agreed and able to place effort and money into the procedure to find great tasks and develop them, and after that more financiers have actually been ready to spend their cash and take the danger and make use of the money to produce the work that is the point of the program.

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These tasks do not linger forever, and USCIS understands that and are trying to speed the program, speed the procedure - EB5 Regional Center Program. That does not indicate that they are unwinding their analysis, and, actually, they prepare to deny applications that are not qualifying. And they do so, as was discussed


The regional center part of the program is not. It becomes part of an appropriations bill 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 irreversible, and it requires to be done currently and not nearer to the date of expiry in September.


The process takes a good while to function up a task and after that to get the financiers accepted. And they do not want their cash moving via until they have actually been accepted. And the specter of the expiration of this Regional Center Program in September is currently inhibiting the advancement of tasks.

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I want to make clear that the Regional Center Program is not the like the half-million-dollar thing. The concept of half a million or a million is a feature of the normal EB-5 law that belongs to the code. It simply is a fact get redirected here that a lot of the local facilities that are pooling investments have actually established those in areas of high joblessness or in country areas where half- million-dollar investments are enabled, and that makes good sense.