EB-5 visa investors are required to file an initial I-526 petition where, among other items, they set forth a business plan that shows how the EB-5 project will create or preserve at least 10 full-time jobs for Americans. After a successful initial petition the individual will receive conditional green card. But the immigrant-investor must also file an I-829 petition to remove those conditions and convert the card to a permanent green card. One of the things that must be shown in the I-829 petition is that a sufficient number of full-time jobs were created. Proving this fact is essential because the immigration benefit of the EB-5 program is dependent upon showing proof. Immigrant-investors who fail to meticulously plan and consider the methods that can be used to prove this requirement have a higher chance of running into difficulties with their petition. Therefore EB-5 investors should be aware of the various methods of proving job creation requirements and they should discuss their plans with an experienced and meticulous Tampa immigration attorney.
The Tenant-Occupancy Model of Counting EB-5 Job Creation
The tenant-occupancy model of assessing the number of jobs created involves a calculation based on assumptions of the number of employees that tenants will be able to employ. Typically this calculation is performed on the basis of the square footage of the space and the type of commercial venture the tenant intends to use the space to pursue. The economist will consider whether this space is intended for use as a retail store, a warehouse, an office, or for other purposes. Using this information, an economist can determine the direct and indirect jobs that will be created by the direct and indirect impacts of the business. Direct impacts include direct hiring by the actual project. Indirect impacts include those jobs indirectly created due to the project or company’s need for good s and services. It is also important to note that only EB-5 projects within a regional center can include indirect job creation. Furthermore, it is essential for immigrant-investors to know that since issuing a February 2012 Request For Evidence (RFE) and a series of operational guidance letters throughout 2012, USCIS has closely scrutinized new applications using this model. The agency also announced in 2012 that construction-related investment does not create jobs in businesses that will come to occupy the space after construction is completed.
Proving Job Creation Through the Job Creating Entity Method
Other projects may count jobs created by using this job creating entity accounting method. The regional center may create job directly in or transfer EB-5 investor funds, loans, and working capital to a “job creating entity.” The directly created jobs are tracked because the job creating entity has direct control over the hiring in the business. This is a potentially significant advantage over the tenant-occupancy model which does not include direct jobs. Furthermore, based on the level of investment into the job creating entity, an economist can calculate the number of induced jobs and jobs that were created indirectly.
The Expenditure-based Model for Assessing EB-5 Jobs Created
Other EB-5 projects may use an expenditure-based model to calculate job creation numbers. This type of model only calculates the indirect jobs created by the EB-5 project. Under the expenditure model an economist would multiply the total expenditures by the multiplier contained in the model. Types of regional centers that are likely to use this model include those centers engaged in making loans to builders and developers. These developers would then use the loans from the regional center along with other sources of capital to complete large and potentially infrastructure-grade projects. In some cases the funds may be used to build a corporate headquarters or a water treatment plant.
Miami Investor Visa Attorneys Provide EB-5 Advice
Working with an experienced immigration attorney, such as the EB-5 lawyers of Colombo & Hurd, can increase the chances of a successful EB-5 petition and decrease the likelihood that your petition will have foreseeable mistakes or issues. To schedule a confidential legal consultation with an immigration lawyer call our firm at 800-659-7142 or contact us online today.