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The program is put in a very odd and non-helpful bureaucratic area for the excitement of global investment in the United States. We are giving away also much for too tiny of a financial investment.


The regional centers, with their half-million schemes, essentially undercut the a lot more reasonable million-dollar part of the EB-5 program. Third, such programs, if we have them at all, as they perform in Australia, need to have to do with developing service entities, not passive investments. It needs to have to do with producing actual tasks, not elaborate estimations about the indirect production of work, which is currently component of the regulation.


Probably that is just one of the factors why it has actually stopped working year after year to get to the legal goal of 10,000 financial investment visas. Fifth, the Regional Center Program is naturally awkward, and the program is also full of intermediaries, both public and exclusive. The program has greater than its share of detractions, which I will certainly enter later if any person is interested.


This is a firm that enjoys to claim yes to candidates, however as the table in my testimony reveals, USCIS police officers have far more difficulty with EB-5 applications than others. I assume that is something that no one has actually really spoken about much. EB5 Regional Center Program. There are high prices of inner rejections in this program and permanently factor

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Seventh, in this program visas go to individuals who could not get them otherwise and to people whose planned financial investment is actually less, according to the Federal Reserve, than the average mean internet well worth of all American households in 2007. Allow me broaden on among my monitorings.


My quote based on the financiers' eco-friendly card applications filed 2 years after the initial investment-- these are the solid ones that continue to be and are approved. This is 2009-- was that they had regarding $191 million validated-- that is my quote. USCIS does not offer the kind of data that we could make use of on this.


So for every $100 of boosted foreign investment that year, the EB program contributed one cent. Under a much extra wobbly analytical base, the first applications of would-be immigrant capitalists, USCIS is telling reporters that the degree of investment in the just-concluded year had to do with $1.2 billion. Allow us accept that.

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Thank you for listening to me. I eagerly anticipate your remarks and inquiries. [The prepared declaration of David North shows up as a submission for the record.] 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 company's migration practice group.




Divine served as Principal Guidance of the United States Citizenship and Immigration Providers from July 2004 until November 2006, the year in which he was Acting Supervisor, and afterwards Acting Deputy Director. He has functioned thoroughly with the EB-5 program in exclusive technique. He was chosen, as I recognize, vice head of state of the Organization to Invest in USA, the nationwide sector organization of regional centers.


Divine, we are pleased to have you right here. Please go on, sir. STATEMENT 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. Thanks, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At many, if all 10,000 slots were utilized, it would certainly be 1 percent of the immigration every year to the USA. It is not near that yet, however it is growing and getting towards that. Particularly as USCIS, the agency that oversees the program, has been making the rules clearer and the procedures extra sensible and clear for individuals who are arranging financial investments and for the investors who are spending, even more individuals have actually agreed and able to put initiative and cash right into the procedure to discover good jobs and establish them, and after that much more investors have actually wanted to invest their cash and take the risk and use the cash to develop the jobs that is the factor of the program.

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These tasks do not linger forever, and USCIS recognizes that and are attempting to speed the program, speed the process - EB5 Regional Center Program. That does not mean that they are unwinding their examination, and, as a matter of fact, they prepare to reject applications that are not qualifying. And they do so, as was discussed


The regional center component of the program is not. It becomes part of an appropriations costs that was enacted in 1992, and because then that program has been extended 5 times for 19 years. It is time for it to be permanent, and it requires to here be done now and not nearer to the day of expiration in September.


The process takes a great while to function up a job and afterwards to obtain the capitalists authorized. And they do not desire their money flowing through up until they have been accepted. And the specter of the expiry of this Regional Center Program in September is currently dissuading the advancement of tasks.

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I would love to clear up 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 normal EB-5 legislation that is part of the code. It simply is a truth that the majority of the regional centers that are pooling investments have established those in locations of high unemployment or in backwoods where fifty percent- million-dollar investments are enabled, which makes sense.