Foreign nationals who are considering the EB-5 Immigrant Investor Program should understand the role of job creation in obtaining a U.S. Green Card. One of the main requirements of the EB-5 visa is providing proof that an investor’s capital will help create and sustain at least 10 full-time jobs for U.S. workers.
This article will break down the specific job creation requirements, how job creation is calculated, and what counts as a qualifying job. It will also give examples of projects that usually meet these requirements and explain the concept of buffer jobs.
Job Creation Requirements
How Job Creation Is Calculated
What Counts as a Qualifying Job?
Understanding the Job Buffer
Work With Professionals for EB-5 Success
Job Creation Requirements
The core of the EB-5 program is its contribution to U.S. economic growth through job creation. In order to qualify for the program, investors need to show that their investment will directly or indirectly create at least 10 full-time jobs for U.S. workers. This requirement applies to both direct investments as well as the more common regional center option.
For regional center projects, indirect and induced job creation also counts, offering more flexibility for meeting the 10-job requirement. This is different from the direct EB-5 program, where investors have to create 10 direct jobs within their new commercial enterprise (NCE).
The EB-5 Reform and Integrity Act (RIA) of 2022 introduced additional regulations to improve the integrity of the program, placing new limitations on job creation. For example, the RIA limits how many indirect jobs from construction activity can be counted toward the 10-job requirement. Investors should understand these updated requirements to make sure their project qualifies for EB-5 visa approval.
How Job Creation Is Calculated
Job creation calculations depend on the type of project and the investment structure. For those investing in regional center projects, jobs can be calculated using economic models that estimate the number of direct, indirect, and induced jobs created by the project. This method offers more flexibility and lets projects in sectors like real estate and infrastructure include a broader range of jobs for the EB-5 visa requirements.
Direct jobs are those where employees are directly hired by the NCE, like staff in a restaurant developed using EB-5 funds. Indirect jobs come from economic activity generated by the project, like jobs created in the supply chain, such as drivers who deliver construction materials. And induced jobs are those created when new employees spend their wages in the local economy, which contributes to more job creation.
Importantly, direct EB-5 projects calculate job creation based only on the direct employment of workers within the NCE. Regional center projects, however, can count the other job types, which makes them a good option for investors worried about meeting the job creation requirement.
What Counts as a Qualifying Job?
A qualifying job for the EB-5 program has to meet certain requirements. Each job needs to be full-time, which means that the position requires at least 35 hours of work each week. The jobs must also be filled by U.S. citizens, lawful permanent residents, or other eligible workers who are authorized to work in the United States.
It’s important to know that jobs created for the investor’s family members or other foreign nationals don’t count toward the 10-job requirement. Seasonal or part-time positions are also not considered qualifying jobs under the EB-5 program. The program specifically focuses on creating stable and long-term employment opportunities that contribute to U.S. economic growth.
Many EB-5 projects are designed to meet or exceed these job creation requirements, especially in industries like real estate. This sector usually generates significant direct and indirect employment, which makes it easier for investors to fulfill the job creation requirement.
For example, a large-scale real estate development project may create hundreds of construction jobs, all of which can be counted as both direct and indirect jobs depending on how the project is structured.
Understanding the Job Buffer
To decrease the risk of not meeting the job creation requirement, many EB-5 projects incorporate the concept of job buffer into their economic models. A job creation buffer simply means creating additional jobs beyond the required 10, providing a cushion in case some of the expected jobs aren’t created. For example, a project might plan to create 15 jobs per investor, so even if some jobs aren’t created, the investor can still meet the EB-5 visa’s job creation requirement.
Having a buffer is especially important for larger projects or industries where job creation is less predictable. By incorporating a job buffer, project developers can reduce the risk of not meeting job creation requirements. And by choosing projects that include protective measures like this, investors can increase their chances of getting a U.S. Green Card.
Work With Professionals for EB-5 Success
Job creation is the core of the EB-5 program, and understanding how this works is crucial for foreign nationals looking to secure a U.S. Green Card through an EB-5 investment. Whether through direct jobs or indirect jobs in a regional center project, meeting the 10-job requirement is key for EB-5 visa approval.
Investors need to carefully review project documents and communicate with their immigration lawyers to make sure their chosen project’s job creation calculations meet United States Citizenship and Immigration Services (USCIS) requirements.
And for the best chances of meeting these requirements, investors should also consult with experienced professionals who understand the complexities of the EB-5 process.
If you’d like to learn more about how job creation works in the EB-5 visa process or have any questions about your specific investment, feel free to book a one-on-one call with our expert team today.
