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Job Classifications for EB-5 Investment

by Hamid R. Kashani, Attorney at Law
Nov 07, 2018 (last modified Feb 25, 2019)

A noncitizen seeking an EB-5 investment must invest either $500,000 or $1,000,000 (depending on the investment location) and create 10 jobs.  How those jobs are counted depends on the kind of investment.

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For investors, who seek EB-5 visa through direct investment, only direct jobs are counted toward the number of jobs that the investment must create.  “Direct jobs are those jobs that establish an employer-employee relationship between the newly established commercial enterprise and the persons that they employ.”  D. Neufeld, Acting Assoc. Director, USCIS Domestic Operations, Memorandum, HQ 70/6.2, AD 09-38, at 2 (Dec. 11, 2009).

Regional centers, however, are allowed to count not only direct jobs but also the indirect and induced jobs towards the total number of jobs that they are required to create on behalf of their investors.

Indirect jobs are the jobs held by persons who work outside the newly established commercial enterprise. For example, indirect jobs include employees of the producers of materials, equipment, and services that are used by the commercial enterprise.  There is also a sub-set of indirect jobs that are calculated using economic models that are known as induced jobs. Induced jobs are those jobs created when direct and indirect employees go out and spend their increased incomes on consumer goods and services.

D. Neufeld, Acting Assoc. Director, USCIS Domestic Operations, Memorandum, HQ 70/6.2, AD 09-38, at 2 (Dec. 11, 2009).

From a practical standpoint, it would be challenging for an investor to start a business, lease space and equipment, purchase inventory, set aside funds for operating expenses, and pay salaries for 10 full time employees on a $500,000 investment.  Regional centers, however, have the advantage of counting indirect and induced jobs towards the number of jobs they create.

Related Topics:

EB-5 Regional Center Investment

EB-5 Direct Investment

 

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