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The program is positioned in an extremely weird and non-helpful administrative location for the excitement of worldwide financial investment in the United States. Second, its range is all wrong. We are offering away excessive for also small of an investment. Further, elevating equity capital half a million dollars a tranche is, to state the least, ineffective.


The regional centers, with their half-million plans, essentially undercut the a lot more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they carry out in Australia, should have to do with creating service entities, not passive investments. It ought to have to do with creating real jobs, not clarify estimations about the indirect creation of work, which is currently part of the regulations.


Maybe that is among the reasons why it has actually stopped working every year to get to the legal objective of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is as well filled up with middlemen, both public and personal. The program has greater than its share of scandals, which I will get involved in later on if any person is interested.


This is an agency that likes to claim yes to applicants, however as the table in my testament shows, USCIS officers have a lot more trouble with EB-5 applications than others. I believe that is something that nobody has actually really spoken about much. EB5 Regional Center Program. There are high prices of interior denials in this program and forever factor

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Seventh, in this program visas most likely to individuals who could not get them differently and to individuals whose scheduled financial investment is in fact much less, according to the Federal Book, than the typical mean total assets of all American households in 2007. Let me broaden on among my observations.


My quote based on the investors' eco-friendly card applications submitted 2 years after the very first financial investment-- these are the strong ones that continue to be and are accepted. This is 2009-- was that they had regarding $191 million confirmed-- that is my price quote. USCIS does not give the kind of information that we can use on this.


So for every $100 of enhanced international investment that year, the EB program contributed one dime. Under a a lot more unsteady statistical base, the initial applications of potential immigrant investors, USCIS is telling journalists that the level of investment in the just-concluded year why not try this out had to do with $1.2 billion. Let us approve that.

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Thank you for paying attention to me. I anticipate your comments and questions. [The prepared statement 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 firm's migration technique group.




Divine offered as Chief Guidance of the USA Citizenship and Migration Providers from July 2004 till November 2006, the year in which he was Performing Director, and then Acting Replacement Supervisor. He has worked thoroughly with the EB-5 program secretive method. He was chosen, as I comprehend, vice president of the Organization to Buy USA, the nationwide market association of local centers.


Divine, we are happy to have you here. Please proceed, sir. DECLARATION OF ROBERT C. DIVINE, ATTORNEY, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE HEAD OF STATE, PURCHASE THE USA (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Legislator Grassley, and others. Thanks for having me.


At a lot of, if all 10,000 slots were used, it would certainly be 1 percent of the migration yearly to the USA. It is not near that yet, but it is growing and getting toward that. Especially as USCIS, the firm that supervises the program, has actually been making the regulations more clear and the processes a lot more sensible and clear for individuals that are arranging investments and for the investors that are spending, more individuals have wanted and able to put effort and money into the process to discover great projects and create them, and after that much more investors have been prepared to invest their cash and take the see here threat and use the cash to create the work that is the point of the program.

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These jobs do not linger for life, and USCIS recognizes that and are trying to speed up the program, speed the process - EB5 Regional Center Program. That does not indicate that they are unwinding their analysis, and, as a matter of fact, they are ready to refute applications that are not certifying. And they do so, as was pointed out


The local center part of the program is not. It belongs to an appropriations costs that was passed in 1992, and ever since that program has actually been prolonged 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 expiry in September.


The process takes a great while to develop a job and after that to get the capitalists approved. And they do not want their money this post moving through up until they have actually been approved. And the specter of the expiry of this Regional Facility Program in September is already discouraging the development of jobs.

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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 normal EB-5 regulation that is part of the code. It simply is a fact that the majority of the local centers that are merging financial investments have established those in places of high joblessness or in backwoods where half- million-dollar investments are enabled, and that makes sense.