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How are jobs maintained if an EB-5 project is completed before the end of the two-year conditional permanent residency?

I want to invest in a late-stage regional center project which is building a campus for a college. The construction will be completed within a year and the college will start to enroll students next year. However, I am worried that since the project will end in the middle of my conditional permanent residency period, I might not meet the job maintaining requirements. Should I invest in this project? Why or why not?

Answers

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    Julia Roussinova

    Immigration Attorney
    Answered on

    A regional center project will need to demonstrate through a job impact report or analysis based on an approved economic model that at least 10 permanent jobs will be created for each EB-5 investor in the project. Review project documentation with an experienced investment advisor or attorney before you invest.

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    You need to study the jobs report but if your funds will be deployed into an active job-creating project, then you should be safe. They can even be used to take out interim financing if that was contemplated such that job creation can be attributed.

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    Marko Issever

    EB-5 Broker Dealer
    Answered on

    Generally, this should not be an issue. The assumed to-be-created jobs have to be credited to the EB-5 investors if the documentation was prepared correctly by the regional center. If you are dealing with a reputable regional center and the developer behind the project is experienced, chances are quite good that they will spend the funds they claimed that they would spend in the economic model and build out the project. It appears like the project is going very well, so the only issue here is whether they will spend the amount of funds they claimed they would spend in the economic model used. If that is the case, then all those assumed to-be-created jobs will be deemed to have been created. This is the beauty of the regional center model as opposed to the direct investment method, where only full-time, direct jobs can be counted.

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    Charles Foster

    Immigration Attorney
    Answered on

    As long as the investment was made and the jobs were created over the requisite period of time, you may even still qualify to have both your EB-5 petitions on Form I-526 and your petition to remove conditions on Form I-829 to be approved.

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    Stephen Berman

    Immigration Attorney
    Answered on

    I believe you are correct that it will not work. The jobs would be merely short-term, not permanent.

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    Vaughan de Kirby

    Immigration Attorney
    Answered on

    The regional center must show via an economic model that your investment resulted in the creation of 10 jobs. This does not necessarily preclude the project from being completed by or before your I-526 approval. You should sit down with an investment immigration attorney or a registered broker-dealer to properly review the project before you invest.

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    Lynne Feldman

    Immigration Attorney
    Answered on

    You need to ask the project these questions about their permanent jobs.

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    Belma Chinchoy

    Immigration Attorney
    Answered on

    Maintenance of jobs is not an issue here. RC-based jobs are usually calculated based on construction expenditures and maintenance of jobs is not a relevant issue.

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    A Olusanjo Omoniyi

    Immigration Attorney
    Answered on

    In most cases job creation does not tend to be a problem if there is an adequate planning. Talk to the developer of your project. Also, this type of project is usually undertaken by the regional center and if that is the case, the regional center can certainly ensure that job requirements are met regardless of whether an investor is among the first set or the last batch. Thus, make sure you request for all necessary information from the relevant party in your investment plan. Advisably, make sure your attorney is involved in the discussions and negotiations regarding this issue.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    I would have to see the actual documents to advise on the immigration aspects of the project, but through a regional center, the economic model counts direct and indirect jobs. Construction jobs are all indirect. The business plan and economic model should be able to explain the methodology used for job creation, and again, upon looking at it I could determine if it was prepared properly. That said, investments must be at-risk, and risk of job-creation shortfalls is one of those risks you have to be able to accept.

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