Job Creation

Job creation is the lynchpin of the EB-5 program and is among the key elements we analyze in selecting an EB-5 project.   In fact, our Regional Center requires that EB-5 projects demonstrate that at least 12 or more jobs will be created for each immigrant investor.  As a Regional Center we have the tremendous advantage of being able to count not only direct jobs but also indirect jobs created in related industries as a result of the investment made by the immigrant investors.  To calculate indirect job creation, we rely on the RIMS II input-output employment modeling system.  We rely on both the direct-effect and final-demand employment multipliers to calculate the number of new jobs created.  The direct-effect employment multiplier calculates the number of indirect jobs resulting from the creation of each new, direct job.  The final-demand employment multipliers calculate the number of indirect jobs resulting from the total spending associated with the EB-5 project.  These employment multipliers are otherwise referred to as the Direct Hire Methodology and the Expenditure Model, both of which can be relied upon to determine the total new indirect jobs created.

When relying on the Direct Hire Methodology, we require detailed job creation forecasts and budgets specifying the employment needs.  The direct jobs must be new full-time positions working a minimum of 35 hours per week.  This data is carefully analyzed before moving forward with any EB-5 financing.   We closely monitor EB-5 financings relying on this methodology and require that all employment expenses, payroll, tax, hours worked and I-9 employment records be provided and updated regularly to evidence the direct job creation which forms the basis for indirect job creation.

The Expenditure Model requires that commercial enterprises or EB-5 projects submit to us detailed expense reporting, annual operating budgets, forecasts, audited financial statements, tax returns, among other financial reports determined on a project-to-project basis.  Because it is the expenditures that are used to calculate the economic impact in a specific industry and which lead to the indirect job creation, we monitor this data regularly.

We work with experienced EB-5 economists to review this data and prepare comprehensive economic impact studies for each of our EB-5 projects.  Among the requirements of our EB-5 financings is that commercial enterprises and EB-5 projects acknowledge and understand the direct and indirect job creation requirements and agree to meet them as an obligation to the EB-5 financing.