Will laying off employees in an EB-5 project impact I-526 processing?

At the I-526 stage, you need to show either that you have created 10 full-time, permanent jobs, or that it is more likely than not that you will do so within 2.5 years of approval. If you lay some people off, you might not have 10 at the time of approval, but if your business was already employing 10 full-time people, it is decent evidence that it is more likely than not to do so again when the current situation resolves. If you get an RFE, you will need to show that this is only a temporary setback, and your business is not materially affected. We think, but cannot guarantee, that USCIS will allow some flexibility in light of the situation that is global and out of the control for everyone.

USCIS considers the 10 positions created, not necessarily the actual living, breathing human who occupies that job (same thing as if you replaced Mr. Jones with Mr. Smith, that position was still created).

It could be an issue but hopefully, the economy will bounce back and you can rehire. This is why over 90% of cases are regional center affiliated so you can use indirect job counts.

Yes, it can and employers are better advised to keep adequate records to explain everything including the effects of coronavirus on their business operations.

No, as long as they are there when the I-829 is filed.

It will not affect your I-526 approval. You need to meet the job creation regulations in time for the I-829 filing.