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Job Creation Under the EB-5 Program

According to the United States Citizenship and Immigration Services (USCIS) along with the required capital investment of $900,000 participants of the EB-5 program must ensure that their investment creates 10 jobs for qualifying U.S. citizens. While the requirement for job creation differs based on whether the investor chooses to invest in a commercial enterprise that already has preapproval from the U.S. government or a commercial enterprise that does not have this preapproval. The inclusion of job creation requirements is another one of the many reasons why this program is pivotal for the United States.

Under the program if an investor chooses a commercial enterprise that has not been approved by the U.S. government then the commercial enterprise (or its wholly owned subsidiaries) itself will be the employer. This means that the investor must directly create 10 full time jobs for the U.S. citizens. Failure to uphold this requirement will result in the declining of the investors EB-5 petition. EB-5 consultants refer to this route as the direct route of investment. It does provide investors with the opportunity to invest in their own businesses or other commercial enterprises that they are exposed to. however, the burden lies on the investor to ensure elements such as business plans, maintaining 10 full time jobs by paying employee taxes, medical insurance etc.

Investors also have the option of investing with a commercial enterprise that has been reviewed and approved by the government. According to USCIS, these commercial enterprises can directly or indirectly create full time jobs for them to meet the program requirements. Indirect jobs are employment found outside of the commercial enterprise but are a result of the development of that particular enterprise. For example, a cafe opening up opposite the commercial enterprise due to the anticipated influx of customers because of the development is considered as indirect jobs.

Evidently, it is easier for investors to choose a commercial enterprise that has already been approved by the U.S. government. The application process becomes a little easier with the investor only having to be concerned with the personal information side of the application. As EB-5 consultants operating out of Dubai we have noticed a consistent trend in applications and applicants choosing a commercial enterprise that is already approved by the U.S. government. The investors would still go through the process of entirely checking and evaluating the commercial enterprise business plan, economic projections, and capital stack before signing and transferring their funds to the project. It does provide a better peace of mind than choosing the option of direct investment.

We are a team of U.S. licensed lawyers who specialize in the EB-5 immigrant investor program. We do not provide any financial or investment advice. Our offices are based in Downtown Dubai. Contact us today for your free consultation.

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