Can an investment that does not create jobs qualify for the EB-5 Program?

Job creation is a fundamental aspect of the EB5 program. Every EB5 applicant’s investment must lead to the creation of at least 10 full-time, permanent job positions. If an investment doesn’t create enough jobs, the investor cannot obtain permanent residency and must try again. As such, proper due diligence on EB5 projects is crucial for prospective investors. This can be done with the help of an experienced EB5 immigration attorney. By evaluating the immigration risk of a project before making their decision, an applicant can avoid projects that may jeopardize their investment’s success and waste time and money.

When conducting due diligence on an EB5 project, it is important to consider the projected job creation and job creation timeline. How many jobs is the project expected to create? A project that aims to create no more than 10 jobs per investor risks falling short of the employment requirement. However, those with a large job cushion — more jobs than what is necessary — are safer options. EB5 jobs must also be created within a certain timeframe, and direct jobs must be sustained for at least two years. As such, investors should look for projects with feasible job creation estimates that can be sustained for the required timespan.

There are two methods of investment for EB5 investors to choose from: investing directly in the EB5 program or through a regional center. Regional center investments are the more popular option because of their ability to count indirect jobs — jobs that result from the project’s economic impact — toward employment generation. This makes it much easier to satisfy job creation requirements. Investors who opt for regional center investment must also conduct due diligence on the regional center that is sponsoring the project. Evaluating the regional center’s track record and administrative team is necessary to avoid fraud and ensure an investment will succeed under the regional center’s management.