How are jobs allocated to investors in an EB-5 project? - EB5Investors.com

How are jobs allocated to investors in an EB-5 project?

I am a potential EB-5 investor and I am curious about how job creation is allocated to investors. Suppose that 70 percent of the capital stack of the regional center project comes from bank loans and 30 percent comes from 100 EB-5 investors. In the economic model, it is claimed that the project could create 2,000 jobs in total (direct, indirect and induced). How are these 2,000 jobs allocated? Can the 100 EB-5 investors take credit for the total 2,000 jobs, or only the portion that is accountable to the financial contribution they make to the project (in this case, 30 percent of the 2,000 jobs)?

Answers

A Olusanjo Omoniyi

A Olusanjo Omoniyi

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The general job requirement for each EB-5 investment is that each investment must result in the creation of at least 10 jobs. As a result, look at the job requirements for 100 EB-5 investors without picking apart their contribution to the capital stack. To avoid confusion, a straight up argument and presumption is that 100 EB-5 investors are expected to produce 10 jobs per investor, which will just be 1,000 jobs. A projection of 2,000 jobs in the regional center modelling will simply convey the message that the project will be worth investing, as the applicable EB-5 job requirement can be easily met. Advisably, for future references, there is no need for modeling analysis, which may sound reductionist in nature. Instead, try to project a holistic analysis which seems to suggest that the sum of all parts in a project is greater than the individual parts. As in this scenario, your hypothesis will support the conclusion that the project can support 100 investors and it is worth pursuing.

Dale Schwartz

Dale Schwartz

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The EB-5 operating entity is allowed to list the persons hired and allocate them to each individual investor.

Julia Roussinova

Julia Roussinova

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EB-5 investors are entitled to and receive 100 percent of the job allocation under current law. Non-EB-5 sources do not receive job allocation, as they do not need it.

Salvatore Picataggio

Salvatore Picataggio

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Economic reports usually take into account the entire capital stack, even if there are other non-EB-5 sources of funds.

Charles Foster

Charles Foster

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The 100 EB-5 investors can take credit for the total of 2,000 jobs, even though they only provided 30 percent of the financing.

Bernard P Wolfsdorf

Bernard P Wolfsdorf

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Under current rules, EB-5 investors can take credit for all the jobs created. There has been talk about changing that, but until we see the final regulations, this is the present rule.

Lynne Feldman

Lynne Feldman

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My understanding is that the EB-5 investors can take credit for all new jobs created. None need to be allocated to other non-EB-5 investors.

Belma Demirovic Chinchoy

Belma Demirovic Chinchoy

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Under the current law and regs, EB-5 investors can take credit for all jobs created. Within the EB-5 investors pool, the jobs are generally allocated based on either the start date of CPR status or I-829 filing. Read the PPM to find out how this particular project handles job allocation.

Fredrick W Voigtmann

Fredrick W Voigtmann

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The EB-5 investors may take credit for 100 percent of the job creation.

Jinhee Wilde

Jinhee Wilde

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100 percent of the jobs are allocated to the EB-5 investors. The senior loan institution does not need the job-creation allocation, as it is not in the EB-5 process.

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