Eb5 Regional Center Program - Questions

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First, the program is positioned in a really strange and non-helpful governmental place for the stimulation of international investment in the USA. Second, its scale is all wrong. We are giving away excessive for too tiny of a financial investment. Further, raising equity capital half a million dollars a tranche is, to say the least, ineffective.


The local facilities, with their half-million schemes, basically damaged the more sensible million-dollar component of the EB-5 program. Third, such programs, if we have them at all, as they do in Australia, need to be concerning developing service entities, not easy financial investments. It ought to have to do with creating real work, not specify calculations concerning the indirect development of jobs, which is now component of the regulation.


Probably that is among the reasons it has fallen short every year to get to the legal goal of 10,000 financial investment visas. Fifth, the Regional Facility Program is inherently awkward, and the program is also loaded with intermediaries, both public and private. The program has greater than its share of scandals, which I will certainly enter into later on if anyone is interested.


This is a firm that likes to claim yes to applicants, yet as the table in my statement shows, USCIS police officers have far more trouble with EB-5 applications than others. I think that is something that no one has truly discussed a lot. EB5 Regional Center Program. There are high rates of interior denials in this program and completely reason

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Seventh, in this program visas go to individuals that could not obtain them differently and to people whose planned financial investment is actually less, according to the Federal Book, than the typical mean internet well worth of all American family members in 2007. Let me broaden 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 strong ones that remain and are approved. This is 2009-- was that they had regarding $191 million confirmed-- that is my quote. USCIS does not supply the sort of information that we might use on this.


For every $100 of boosted foreign financial investment that year, the EB program contributed one penny. Under a far more wobbly statistical base, the initial applications of prospective immigrant capitalists, USCIS is informing journalists that the level of financial investment in the just-concluded year was concerning $1.2 billion. Let us accept that.

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Thanks for paying attention to me. I look ahead to your remarks and questions. [The prepared declaration of David North looks like an entry 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 company's immigration method team.




Divine offered as Principal Guidance of the United States Citizenship and Migration Solutions from July 2004 until November 2006, the year in which he was Acting Director, and after that Performing Deputy Director. He has actually functioned extensively with the EB-5 program in exclusive method. He was elected, as I recognize, vice head of state of the Organization to Invest in USA, the national sector organization of regional.


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


At many, if all 10,000 ports were used, blog it would certainly be 1 percent of the immigration each year to the USA. It is not near that yet, but it is growing and getting toward that. Specifically as USCIS, the firm that supervises the program, has been making the regulations more clear and the procedures much more sensible and clear for the people that are organizing financial moved here investments and for the investors who are spending, more individuals have wanted and able to place effort and money right into the process to locate great tasks and develop them, and then more financiers have actually wanted to invest their money and take the risk and use the cash to create the tasks that is the factor of the program.

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These jobs do not linger for life, and USCIS understands that and are trying to speed up the program, speed the process - EB5 Regional Center Program. That does not indicate that they are relaxing their scrutiny, and, in fact, they prepare to refute applications that are not certifying. And they do so, as was pointed out


The regional facility component of the program is not. It becomes part of an appropriations bill that was passed in 1992, and considering that then that program has been extended five times for 19 years. It is time for it to be long-term, and it requires to be done now and not nearer to the date of expiration in September.


The procedure visit this website takes a good while to develop a job and after that to get the capitalists approved. And they do not desire their cash moving through until they have actually been authorized. And the specter of the expiration of this Regional Facility Program in September is already inhibiting the advancement of tasks.

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I want to clarify that the Regional Facility Program is not the same as the half-million-dollar point. The idea of half a million or a million is a feature of the normal EB-5 law that becomes part of the code. It just is a truth that the majority of the regional facilities that are pooling financial investments have actually established those instead of high unemployment or in country locations where fifty percent- million-dollar investments are enabled, and that makes good sense.