Question:
How will indirect job creation work for my project? I am looking at an EB-5 project that has received I-924 approval (actual project with exemplar I-526 petition). I was told that this project only uses indirect job creation, because the construction is less than 24 months. According to the I-924 document, this project can create 17 indirect jobs per EB-5 applicant, which seems very secure to get an I-829 approval when the time comes. 1) What concerns do you have with this job creation based on the limited information? 2) This project is financed by both the government and EB-5 investors. How much capital expenditure will be used for the EB-5 job creation calculation? Will only the portion injected by EB-5 investors be used? 3) How will the timing of the capital injection impact the job creation? For example, the project will be completed in the coming July, but the fund won't be released to constructor from an escrow account until the EB-5 investor gets I-526 approval, which will be later than the construction completion date.
Answers:
Lots of good questions! Here we go…
1. Some economists consider all jobs created by regional center projects to be indirect, especially with a loan model (as the NCE doesn’t actually hire anyone) and when construction is less than 24 months. That is, operations jobs won’t exist for long enough when the I-829 is filed and the construction jobs are done. Therefore, all indirect employment creation.
2. Any economic model’s inputs need a basis in an expenditure, which can be EB-5 funded or non-EB-5 funded. However, we would consult with a qualified economist to confirm.
3. Generally, the jobs must be created before filing the I-829. We would need more detail and the involvement of an EB-5 economist to develop a proper and approvable strategy.
You definitely ask thought provoking questions which can be answered by your experienced EB-5 attorney. With the assistance of the EB-5 attorney and an experienced EB-5 economist you will be able to develop a strategy and acceptable construction timeline to show how the required jibs will be created indirectly.