If I invest in a project where job creation is already done will my money have to create jobs after I invest ?
Under direct investment, if the jobs were created prior to your investment, then they cannot be credited to you. One of the requirements is to create 10 new jobs.
It is not clear from the facts if it is a direct or a Regional Center project investment. Generally speaking, your investment must be connected to creation of at least 10 full-time permanent jobs. Please consult a qualified immigration attorney to discuss your specific situation.
It depends on the documents that you executed. Normally, there is a job allocation agreement or a provision in the PPM. This is an important factor you need to look at.
If we presume that the project has sufficient jobs that can be allocated to the investors, then generally, most job allocation agreements allow for a first-in, first-out structure. The investor should consider how the jobs are identified at the I-526 stage and how the investment will be traced to these jobs at the I-829 stage. It is difficult to answer your specific question without more information, however it is important to remember that the basic premise of the EB-5 structure is that it is a job creating vehicle. There are many situations where the developer begins the project using bank financing, in anticipation that the EB-5 funds will replace such funds upon investment. Note, the USCIS New Policy Memo of May 30, 2013 seems to do away with the requirement that EB-5 be anticipated in advance using bridge financing. As a result, by the time EB-5 funds are deposited into escrow, the project is well on its way to completion and as a result, many of the jobs have been "created." Of course, there are certain parameters to this model and without more information, you cannot rely on the entirety of this answer.
Your question does not state whether this project is a traditional stand alone EB-5 petition with pooled investment or it is an investment affiliated with a regional center. If it is a stand alone EB-5 petition where there are other investors who have already put up their money to create the current jobs, you will need to find out from this commercial enterprise''s business plan to determine how many investors are allowed to fund the project. For an individual, non-regional center EB-5 petition, your investment must be used to create at least ten direct jobs after your investment; you cannot be allocated for jobs already created. In the case of a regional center investment (for which there is no mention of a business plan), the I-526 must include evidence that the investment will create full-time positions for not fewer than ten persons either directly or indirectly through "reasonable methodologies". 8 C.F.R. 216.6(c)(1)(iv) requires proof that the conditional resident investor either created "or can be expected to create within a reasonable period of time" the requisite number of employees.
The jobs created before you make the investment cannot be credited to you if this is a direct EB-5 project. You must create 10 new jobs. If it is a regional center project, under certain circumstance, such as bridge financing arrangement, the jobs created before may be credited to you.
Yes, each EB-5 investor must create 10 new jobs whether directly or indirectly depending on the type of EB-5 project you are using.
The idea is that your investment will create the jobs. If the jobs have been created using bridge financing the USCIS will now permit you to pay that off and allocate the jobs to the investor.
The investment capital must create 10 NEW jobs. Simply investing in an existing business and retaining jobs only counts if you can document that the business has been seriously "troubled" and the investment capital is saving jobs that would otherwise be lost.
Yes. Each investment must be directly tied to the creation of at least 10 full-time jobs.
Yes, it is for creating new jobs, not already existing jobs.
You can do it as an expansion with creation of additional 10 jobs.
There must be a nexus between the money invested and the jobs created. If this is a direct investment, you will need to also ensure that the entity is a qualifying commercial enterprise; this is something you should discuss with EB-5 immigration counsel in detail before making the investment.
The requirement is that the new commercial enterprise must create 10 new full-time positions for qualifying U.S. workers. If you make an investment in a project where the job creation already has been completed, then it will be difficult to show new job creation if you do not expand or create new jobs. You should consult with an experienced EB-5 attorney to see how or if this can be structured to meet the USCIS requirements.
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