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And I have been proud to fulfill them and pleased to invite them. Chairman Leahy. Additionally, as my last concern, in a few of the testimony today there has actually been an idea that, certainly, just with all the hundreds of billions, trillions of bucks prepared to spend, you should just go elsewhere.


Stenger. I would inform you that in this environment the capability to raise capital for things we are doing would have-- it is impossible to do so in a way that would enable us as effectively and as rapidly produce things we have done. You can borrow money if you have got half down.


I can have borrowed half of that if I had the $12 million in cash money to install. Everybody understands that, yes, banks have cash to financing as long as you have actually got half of it in your pocket before you ask for the various other half. That is not how organization functions these days.

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Senator Grassley. Senator Grassley. I desire to confess that we only have anecdotal info, yet I would certainly like to ask you to what degree you have to go or do go to make sure that the facilities make sure that the financial investments do not produce work for individuals below illegally.


Mr. Stenger. Senator, I am a hands-on proprietor of a company, and I am on-property every single day. We have actually worked with-- as I stated, at the Top we had 550 building and construction workers on our project. The marching orders that I offered to my group is that we are to hire neighborhood firms in virtually every instance to do all of the construction.


They are made up of 10, 15, 20, 30 staff members. They are profiting directly from the investment. I know the employees, I recognize their family members, and we have been able to use-- via these last 3 years of dreadful economic chaos, we have been able to employ nearly every building worker in our area and the bordering counties.

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residents. They stay in the area. Their family members exist. They are purchased the neighborhoods, and they are all united state workers. Legislator Grassley. You do not have to make use of e-verify, but I want to understand whether or not you do. Mr. Stenger. We do. Senator Grassley. You do.


Thanks. Mr. North, along the exact same lines of the inquiry I asked him, has your research study revealed examples various other-- and I only gave one example, so I desire to confess that and be accountable about it-- of centers hiring undocumented people? Mr. North. That kind of data is really hard to get from USCIS, and I should claim that what we do recognize about many of the inner points regarding that agency regarding this program is concerned associates with cases in which the staff has actually said no to an application of some kind and after that the local center or the specific entrepreneur has mosted likely to the Administrative Appeals Workplace-- which is component of the agency-- and there we obtain documents, we obtain a hearing police officer telling us click here what is taking place in that certain situation.




This is a bad application." There is an amount of negative applications out there, but just when that process gets before an administrative law court do we see much in the way of information. Currently, there was one situation that you stated, and let me just specify on that particular a bit.

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Mr - EB5 Regional Center Program. North. The milk ranch had actually asserted 17 workers, and they got into it, and the court located that 16 of them were illegals.


Okay. I am going to ask separate concerns of each of the 3 of you, however it handles this problem. As I claimed in my opening statement, I am concerned concerning the potential technicality that allows financiers to withdraw their financial investment in local centers after getting their permit.


Divine, are you knowledgeable about any type of instances in which an investor withdrew the investment and left promptly after getting a permit? And if you are, or if you believe it is an issue, do you believe that it is a loophole that should be shut? Mr. Divine. I would certainly state that a lot of the investors, if you inquired what are their objectives, they would say, "I wish to get a copyright, and I want to keep it.


If I place my cash in a resort development-- Senator Grassley. Can I presume then that you are stating that there does not require to be any type of adjustments made in that regard? Mr. Divine. I do not believe so. Senator Grassley. Okay. Allow me ask Mr. Stenger, is it usual for a capitalist in your experience to withdraw his or her investment immediately after receiving a permit? Mr.

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Legislator, no. Our programs call for that the investor be invested for a minimum of 5 years and be paid back only if the service remains in a position to do so at the end of that time. So we have the benefit of the funding to develop business, get it running, make it effective, ensure that the jobs will certainly be created and kept, and then only if the company achieves success will certainly there be a departure technique for the investor.