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The program is put in an extremely weird and non-helpful governmental location for the stimulation of global investment in the United States. We are offering away as well much for as well little of an investment.


The local centers, with their half-million plans, essentially undercut the extra sensible million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they perform in Australia, ought to be about developing organization entities, not passive financial investments. It needs to be regarding developing real jobs, not elaborate computations regarding the indirect development of tasks, which is currently part of the regulations.


Probably that is one of the reasons it has stopped working time after time to get to the legislative objective 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 enter later on if any person is interested.


This is a company that likes to claim yes to candidates, but as the table in my testimony shows, USCIS officers have far more problem with EB-5 applications than others. I assume that is something that nobody has actually really discussed much. EB5 Regional Center Program. There are high rates of inner denials in this program and completely factor

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Seventh, in this program visas go to individuals who could not get them differently and to individuals whose organized investment is really much less, according to the Federal Get, than the typical mean total assets of all American households in 2007. Let me increase on one of my monitorings.


My estimate based upon the investors' environment-friendly card applications submitted 2 years after the initial investment-- these are the strong ones that remain and are accepted. This is 2009-- was that they had about $191 million verified-- that is my estimate. USCIS does not supply the type of information that we can utilize on this.


So for each $100 of increased international investment that year, the EB program added one penny. Under a far more wobbly statistical base, the preliminary applications of would-be immigrant capitalists, USCIS is informing reporters that the level of investment in the just-concluded year was regarding $1.2 billion. Allow us approve that.

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Thank you for listening to me. I look ahead to your remarks and questions. [The prepared statement of David North shows up as an entry for the record.] 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 company's migration technique team.




Divine functioned as Chief Advice of the USA Citizenship and Migration Providers from July 2004 up until November 2006, the year in which he was Performing Director, and after that Performing Replacement Director. resource He has worked thoroughly with the EB-5 program in personal technique. He was elected, as I recognize, vice head of state of the Association to Buy USA, the national market organization of local facilities.


STATEMENT OF ROBERT news C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE U.S.A. (IIUSA) Mr. Divine. Thank you, Mr. Chairman, Senator Grassley, and others.


At most, if all 10,000 slots were utilized, it would certainly be 1 percent of the immigration each year to the United States. It is not near that yet, yet it is growing and getting toward that. Specifically as USCIS, the agency that supervises the program, has been making the guidelines more clear and the procedures a lot more rational and clear for the people that are organizing investments and for the financiers that are investing, more people have been prepared and able to put initiative and money into the procedure to discover good tasks and develop them, and afterwards extra investors have been ready to invest their money and take the risk and make use of the cash to create the work that is the factor of the program.

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These jobs do not linger forever, and USCIS comprehends that and are trying to speed the program, speed up the procedure - EB5 Regional Center Program. That does not suggest that they are unwinding their scrutiny, and, in fact, they are ready to refute applications that are not certifying. And they do so, as was discussed


The local center component of the program is not. It belongs to an appropriations costs that was enacted in 1992, and considering that then that program has been prolonged five times for 19 years. It is time for it to be permanent, and it requires to be done currently and not nearer to the date of expiration in September.


The browse this site process takes a great while to develop a job and afterwards to get the financiers authorized. And they do not desire their cash moving via till they have actually been authorized. And the specter of the expiration of this Regional Center Program in September is already preventing the development of projects.

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I wish to clarify 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 function of the routine EB-5 law that belongs to the code. It just is a fact that many of the regional centers that are merging financial investments have actually established those in places of high joblessness or in backwoods where fifty percent- million-dollar financial investments are enabled, which makes sense.