Why Have a Job Cushion? - EB5Investors.com

Why Have a Job Cushion?

Ali Brodie

by Ali Brodie

In the EB-5 preference category, for every one investor, at least 10 new jobs must be created.  A best practice for regional centers is to guarantee that each project presented to investors has some job cushion—ensuring that job projection numbers are above the bare minimum required.  From the perspective of the regional center, this is critical when marketing to sophisticated investors who are primarily interested in securing their path to a green card through the underlying regional center project.  From the perspective of the investor, failure to meet the job creation requirements may lead to denial of the Form I-829 Investor’s Petition to Remove Conditions, and loss of permanent residency.

In the regional center context, investors may benefit, as the total job creation projection can count indirect and induced jobs in addition to direct jobs.  This also provides additional job cushion in terms of the final job count number.  Depending on a variety of factors, it is generally recommended that each project have a job cushion between 10 percent and 30 percent.  Investors frequently analyze job creation projections, and arguably the greater the job creation number is above the minimum requirement (10 jobs per investor), the more at ease the investor will be in understanding that the job creation requirement will be met.  It is critical to work with experienced immigration counsel to perform due diligence on the project to verify that a substantial job cushion exists within the economic report.

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