Does EB-5 capital get credit for all jobs created by a project, or just for the portion of project cost from EB-5 capital allocated on a pro-rata basis. For example, if a project (within a TEA) costs $50 million to construct, and it takes in $5 million of EB-5 capital, does it need to create 1,000 direct and indirect jobs for the I-829s to be approved?
Answers
Ed Beshara
Immigration attorneysThe required number of jobs to be created is based upon the number of investors. That is, the general rule is that 10 full time workers have to be created per investor. In a regional center project, indirect jobs can be created. In the example you give, we only need to show that based upon an expenditure of $5 million (or 10 investors), the required number of jobs will be created.
Julia Roussinova
Immigration attorneysJob creation is counted for the entire project. Each EB-5 capital contribution by each investor must lead to the creation of at least 10 full-time jobs (35 hours a week or more). In a regional center-based project, both direct and indirect and induced jobs are counted.
Ying Lu
Immigration attorneysIf you only need $5 million from EB-5 funds, assuming each investor invests $ 500,000, you will need 10 investors. That will be 100 jobs. In direct EB-5 cases, those 100 jobs must be direct jobs; in regional center cases, both direct and indirect jobs count.
Michael A Harris, Esq
Immigration attorneysTo better understand what portion of a capital stack to be counted toward your project it is best to have an experienced EB-5 economist review and study the project. The entire capital stack can be considered, although the economist will determine which portion of the expenditures will qualify. For example, certain soft costs are not permitted by the USCIS, as well as other factors that inexperienced economist can determine. Otherwise the USCIS requirement is that each investor capital contribution needs to lead to the creation of at least 10 direct jobs unless the project is associated with a regional center, in which case indirect and induced jobs can be the only consideration necessary if you would like.
Fredrick W Voigtmann
Immigration attorneysEB-5 investors may get credit for the job creation of the entire project, even though there may be a significant portion of funds from non-EB-5 sources. To answer your question, the jobs required to be created depends upon the number of EB-5 investors in the project.
Salvatore Picataggio
Immigration attorneysTen jobs need to be created per EB-5 investor. That is, $5 million of EB-5 capital would come from (if in a TEA) 10 investors, and therefore at least 100 jobs would need to be created.
Mahsa Aliaskari
Immigration attorneysThe job creation and allocation is for the entire project and not just for the portion funded through EB-5 funds.
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