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The EB-5 Immigrant Investor Program requires that each investor’s capital investment results in the creation of at least 10 full-time jobs for U.S. workers. These jobs must be created within two years of the investor’s admission to the United States as a Conditional Permanent Resident.
Types of Job Creation
1. Direct Job Creation
Definition: Jobs that are created directly by the commercial enterprise in which the investment is made. These are positions that are filled by employees of the business that received the EB-5 investment.
Calculation: Direct jobs are typically calculated based on the payroll records and employee documentation of the new commercial enterprise (NCE).
2. Indirect Job Creation
Definition: Jobs that are created collaterally or as a result of the capital investment in the commercial enterprise affiliated with a regional center. Indirect jobs may be created in businesses that supply goods or services to the NCE or by other economic activities in the surrounding community.
Calculation: Indirect jobs are usually estimated using economic models (such as RIMS II or IMPLAN) to demonstrate how the investment leads to job creation in the broader economy.
Verification of Job Creation
1. Documentation
Investors and enterprises must provide comprehensive documentation to verify job creation. This includes business plans, payroll records, tax documents, and economic impact studies.
2. Compliance Reviews
USCIS conducts compliance reviews and site visits to ensure that the jobs claimed to be created by the investment are legitimate and meet the program’s requirements.
3. Economic Reports
For indirect job creation, economic reports prepared by qualified economists or regional centers are used to justify job creation estimates.
The accurate calculation and verification of job creation are crucial to the success of an EB-5 application, ensuring that the investment truly benefits the U.S. economy by creating sustainable employment opportunities.
