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About Eb5 Regional Center Program

First, the program is put in an extremely strange and non-helpful bureaucratic area for the stimulation of worldwide financial investment in the USA. Second, its scale is all wrong. We are distributing excessive for as well little of a financial investment. Further, elevating financial backing half a million dollars a tranche is, to say the least, inefficient.


The local facilities, with their half-million plans, basically damaged the extra sensible million-dollar component of the EB-5 program. Third, such programs, if we have them in any way, as they carry out in Australia, need to be concerning creating service entities, not easy investments. It should be about producing genuine work, not specify estimations about the indirect development of work, which is currently part of the regulations.


Possibly that is one of the reasons that it has failed year after year to reach the legal objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is as well full of middlemen, both public and personal. The program has more than its share of detractions, which I will certainly get involved in later if any person is interested.


This is a firm that enjoys to state yes to candidates, but as the table in my statement shows, USCIS police 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 rates of internal denials in this program and permanently reason

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Seventh, in this program visas go to individuals that might not get them differently and to people whose planned investment is actually much less, according to the Federal Get, than the ordinary mean total assets of all American households in 2007. Allow me expand on one of my monitorings.


My estimate based upon the capitalists' eco-friendly card applications filed 2 years after the first financial investment-- these are the solid ones that remain and are accepted. This is 2009-- was that they had concerning $191 million verified-- that is my estimate. USCIS does not give the type of data that we can utilize on this.


For every $100 of raised foreign financial investment that year, the EB program contributed one dime. Under a far more wobbly analytical base, the initial applications of potential immigrant financiers, USCIS is informing reporters that the level of find this financial investment in the just-concluded year had to do with $1.2 billion. Let us approve that.

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Thank you for listening to me. I eagerly anticipate your remarks and concerns. [The ready declaration of David North appears as a submission for the record.] 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 immigration method team.




Divine acted as Chief Advise of the United States Citizenship and Migration Providers from July 2004 till November 2006, the year in which he was Acting Supervisor, and then Performing Replacement Supervisor. He has functioned extensively with the EB-5 program in personal practice. He was chosen, as I understand, vice president of the Organization to Invest in U.S.A., the nationwide market organization of regional.


STATEMENT OF ROBERT C. DIVINE, ATTORNEY, 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, Legislator Grassley, and others.


At most, if all 10,000 slots were utilized, it would certainly be 1 percent of the migration annually to the United States. It is not near click for more that yet, yet it is expanding and getting towards that. Specifically as USCIS, the agency that manages the program, has actually been making the policies clearer and the processes much more sensible and clear for individuals that are arranging financial investments and for the capitalists that are spending, even more individuals have actually been ready and able to place initiative and cash right into the procedure to locate excellent tasks and develop them, and after that much more investors have wanted to invest their money and take the risk and make use of the cash to develop the tasks that is the point of the program.

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These projects do not linger forever, and USCIS recognizes that and are attempting to speed the program, speed up the process - EB5 Regional Center Program. That does not suggest that they are relaxing their examination, and, actually, they are all set to deny applications that are not qualifying. And they do so, as was stated


The regional center part of the program is not. It becomes part of an appropriations bill that was enacted in 1992, and given 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 process takes a good while to work up a task and after that to obtain the investors approved. And they do not advice desire their cash streaming via up until they have actually been accepted. And the specter of the expiry of this Regional Facility Program in September is currently discouraging the advancement of tasks.

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I would love to clarify that the Regional Center Program is not the like the half-million-dollar point. The concept of half a million or a million is a function of the normal EB-5 law that becomes part of the code. It simply is a reality that a lot of the regional centers that are merging financial investments have actually set those in areas of high unemployment or in backwoods where fifty percent- million-dollar investments are enabled, which makes good sense.