How to Meet EB-5 Job Creation Requirements

WRITTEN BY

EB-5 Insider Team

A group of professionals with years of experience helping people immigrate to the US

Note: This article is for informational purposes only. We are not providing legal advice or selling securities. The articles and content on this site are of a general informational nature only and should not be relied upon for individual circumstances.

The EB-5 visa program is an investment-based immigrant visa designed to boost the U.S. economy and provide jobs for residents. It allows foreign investors to gain U.S. residency and citizenship through investment for themselves and their immediate family members. Investors must invest either $800,000 or $1,050,000 and create at least 10 full-time jobs for US workers.

While the investment is made at the start of the EB-5 visa process, the job creation or preservation must have happened before the foreign investor files Form I-526. Alternatively, they must be able to show through a business plan that the necessary job creation will occur within their two-year conditional permanent residency period. Any jobs created through an EB-5 investor’s investment must be maintained throughout the two years until they fill a Form I-829 to remove the conditions of their permanent residency.

Jobs created through EB-5 investment projects are categorized as direct, indirect, or induced. EB-5 visa applicants may be required to prove that their investment resulted in direct jobs. We’re exploring the job creation requirement for EB-5 visas and sharing how you can navigate around some of the common challenges associated with EB-5 job creation.

How is EB-5 Job Creation Calculated?

EB-5 regulations state that qualifying employees must be “a United States citizen, lawfully admitted permanent resident, or other immigrant lawfully authorized to be employed in the United States.” Additionally, the entrepreneur, their spouse, children, or any non-immigrant alien are not eligible to qualify as one of the 10 necessary employees.

The 10 jobs created through the immigrant’s investment must be full-time roles where the qualifying employee works for at least 35 hours per week. Part-time, seasonal, and temporary positions do not qualify. However, if 2 employees job share one full-time position, it will be calculated as 1 job.

How to Calculate EB-5 Job Creation

An economist will usually be involved in helping you calculate the number of jobs created by an EB-5 project. They’ll use accepted economic or statistical methodologies to calculate EB-5 job creation.

RIMS II, provided by the U.S. Department of Commerce, and IMPLAN, provided by MIG, Inc., are the most common models used to calculate job creation as they consider the relationship between industries to estimate the project’s overall economic impact. These models produce a final demand multiplier, which is applied to calculate job creation.

This report is necessary to demonstrate to the USCIS that the conditions of the EB-5 visa have been met with the creation of at least 10 jobs. Alternatively, it can be used to show that the previously submitted business plan has been followed. The I-526/I-526E petition sets out the basis for job creation and the immigrant’s chosen EB-5 investment strategy.

When an investor applies to remove the conditions of their permanent residency, they’ll file a Form I-829, which requires them to show that they have met the conditions of the EB-5 visa program, including the necessary job creation.

Types of Job Creation for EB-5 Investment Visas

Three main types of job creation apply for EB-5 investment visas: direct, indirect, and induced jobs.

Direct Jobs

Direct jobs are identifiable positions created for qualifying U.S. workers. These jobs are formed directly within the business in which the immigrant has invested their EB-5 capital. Direct jobs must be full-time positions where the individual is working at least 35 hours per week. Alternatively, a full-time position can be shared by two employees, dividing the hours between them. Such positions will count as the creation of one job. However, part-time positions cannot be accumulated together to create the equivalent of a full-time position, even if they would equal the same number of hours if combined.

Indirect Jobs

Indirect jobs are relevant for EB-5 investors who put their capital into regional centers. These jobs are actualized in commercial enterprises and businesses associated with the regional center and can still be shown to have been created from the investor’s capital. Indirect jobs will only be counted when the investment is made through a USCIS-designed regional center. These jobs are typically ones that have been created within businesses that supply services or goods to the EB-5 project, such as construction companies.

Induced Jobs

Induced jobs are those created in the wider community around the regional center because of the job creation from the EB-5 investment. For example, workers involved in EB-5 projects will spend their money within the local community, leading to the creation of induced jobs.

Project Requirements for EB-5 Job Creation

EB-5 investors will have to do their due diligence to ensure that the business or project they’re investing in will create the necessary jobs to allow them to meet the terms of their conditional residency.

Regulations state that new commercial enterprises must create no fewer than 10 full-time positions for qualifying employees. If you are starting a new business, all the jobs you create have the potential to qualify for the required 10 positions. However, if your investment is used to acquire an existing business, the jobs that already exist will not count towards the job creation requirement of your EB-5 visa.

It’s worth noting that there is an exception for troubled businesses. Investors will be able to take credit for preserving existing jobs that may have been lost without their investment. A ‘troubled business’ is one that existed for at least two years before the EB-5 investor’s injection of capital and incurred a net loss before the investor’s EB-5 petition.

Job Creation and Regional Center Projects

Job creation or preservation must occur before the EB-5 investor files their Form I-526. Alternatively, the investor must be able to prove with a business plan that jobs will be created within their two-year conditional permanent residency period. Jobs created through the EB-5 investment must be maintained throughout the investor’s two-year conditional permanent residency period until the condition is removed after their Form I-829 is approved.

Investors should do their necessary due diligence to ensure that they are committing their capital to the right project before they submit their Form I-526. When an investor submits their Form I-829 to remove the conditions of their permanent residency, they must demonstrate actual employment creation.

Regional Center projects have a lower investment threshold and allow indirect and induced jobs to be counted towards the ‘job creation’ requirement for the EB-5 visa.

Challenges of Job Creation for EB-5 Visa Requirements

Job creation is one of the most challenging aspects of the EB-5 visa process. Doing proper research and due diligence before making your investment can help you navigate these obstacles to ensure you meet the requirements for permanent residency at the end of the EB-5 visa process.

Documentation Requirements

You’ll be required to show extensive evidence for your investment, whether in a standalone business or a regional center. We recommend compiling evidence early in your process and maintaining detailed records that can be provided at each stage of your application process as proof of investment and job creation.

Navigating Economic Uncertainties

Some projects are more likely to create jobs than others. Search for projects with economic stability and diversify investments to mitigate the risks of economic uncertainty. 

USCIS Scrutiny

You’ll be subjected to the extensive USCIS review process, which will require extensive evidence of job creation. You can increase your chances of having your application approved without delay or amendments by working with an immigration lawyer and economic advisors to ensure your petition is correct.

What is the Deadline for Job Creation for EB-5 Investor Visas?

An EB-5 visa applicant’s investment must be irrevocably committed to a project before they can submit their Form I-526. If the jobs have not yet been created, a credible business plan can be used to show they will be created over the next two years. After the I-526 petition is accepted, the investor will receive their two-year conditional permanent residency. At the end of these two years, they will file a Form I-829 to remove the conditions of their permanent residency. They must demonstrate that actual employment creation has occurred with at least 10 full-time jobs created. The only exception to this is for investors who committed their capital to troubled businesses.

Proving Job Creation for EB-5 Visa Applications

It’s essential that you can supply proof of job creation because of your investment. You should meticulously document the impact of your investment on job creation, including in the local community for regional center projects, to use as evidence for your permanent residency.

Documentation such as payroll records, detailed employment reports, and tax documents can be used. Alternatively, investments in regional centers can also benefit from economic analyses to support claims of indirect and induced job creation. Any submitted documents must meet USCIS’ standards for accuracy, clarity, and relevance. The documents you provide must show that the jobs created will last at least two years.

Your regional center or immigration lawyer will help you navigate the documentation requirements to demonstrate that you have met the job creation requirements to secure your EB-5 visa.

Obtain Permanent Residency in the U.S. through Investment

The EB-5 visa is the fastest route for foreigners seeking U.S. permanent residency and citizenship through investment. You can obtain a permanent U.S. green card for yourself, your spouse, and any unmarried children under 21 years of age for an investment of $800,000. EB-5 Insider simplifies your path to U.S. residency and citizenship by streamlining the application process, helping you along each step of your application.

Start the process of applying for an EB-5 visa today, or contact our team for more information.

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