EB5 Job Creation Requirements
If you invest in a regional center located within a TEA, jobs created indirectly by your EB-5 investment count towards the required 10 jobs. Indirect jobs include employees of companies that produce goods, material, and services used by the regional center in which you invest. For example, if you invest in a hotel that has gained regional center status, and a nearby airport opens an additional shuttle branch as a result, jobs created will count towards your EB5 job creation requirements.
Jobs can be created indirectly when the regional center in which you invest lends money to other companies, which in turn create jobs. Jobs can also be created indirectly by businesses who rent space from the regional center in which you invest.
Induced jobs may also count towards your quota. Induced jobs result when workers who are employed either as a direct or indirect result of your investment spend their wages. The number of induced jobs your investment creates is calculated using an econometric model. An econometric model uses statistics to examine economic phenomenon. This calculation involves many complex processes, which your immigration lawyer will be able to explain.
If you make your EB-5 investment in a regional center, independent contractor positions that last for at least two years are count towards your EB5 job creation requirements. If you invest outside of a regional center, independent contractor positions do not count.
Keep in mind that for indirect jobs to count towards your EB5 job creation requirements, they must be created in the same region where the regional center is located. This is a change enacted by USCIS in 2009. If jobs are created outside of the region, they will not be counted with the 10 jobs you must create to receive your conditional EB-5 green card. Your immigration lawyer can help you examine your EB5 job creation requirements regarding regional center location to ensure the jobs you create count towards your quota.
If you invest $500,000 in a regional center located within a TEA, and your EB5 investment indirectly creates jobs outside of the TEA, as may occur if the regional center gives loans to other businesses, these jobs do not count towards your quota, even if they occur as a result of your EB-5 investment.
USCIS generally assumes that indirect jobs created by your EB5 regional center investment are full-time. However, you must be able to document that jobs you create directly are full-time in order to qualify for your conditional EB5 green card.
Calculation of Indirect Jobs Created through Regional Center Investment
If you create jobs indirectly, USCIS and the regional center in which you invest will determine whether or not you have met your quota by plugging the number of jobs directly created into an econometric model that will determine the number of jobs indirectly created as a result. Models commonly used and often accepted by USCIS include RIMS II, IMPLAN, and REDYN. An experienced immigration lawyer will understand these models and how to apply them to your EB-5 investment project.
USCIS and your chosen regional center may also determine whether you have met your job-creation quota by plugging your EB-5 investment amount into an econometric model to deduce how many jobs were created by loans made from your invested funds.
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