eb5exclusive

Some EB-5 investors do not take the EB-5 job creation requirement into consideration when choosing an approved EB-5 Project to invest in. This question is not asked as frequently as it should be by potential EB-5 Investors.

EB-5 Visa stands for “Employment Based Visa”; it is required by the USCIS that the approved EB-5 project create 10 new jobs per investor. At the time of your EB-5 Visa application, the EB-5 project will need to provide the USCIS with proof of job creation, these projects have different methods of calculating the 10 jobs per investor, and this method needs to be approved by USCIS.

So let’s say you have applied through an EB-5 Regional Center whose program strategy requires 200 investors to succeed, this will require 2,000 new jobs to be created. Let’s say this project is based on developing residential property. In this case the investment was fully subscribed and the building completed however, since the original planning stage the economic climate has changed and fewer tenants have moved in consequently creating fewer jobs. What does this mean for you?

If the above scenario applies to you, your EB-5 visa application will be denied, you will be put in removal proceedings and the full investment of $500,000 or $1,000,000 will not be refunded. This is why it is crucial you take precautionary steps and conduct thorough research prior to making your EB-5 Investment.

The Exclusive Visas team can provide you with due diligence and research analysis reports on approved EB-5 projects that will include most areas of concern. To request these reports please contact Fred Burgess or Joe Sloboda via email at info@exclusivevisas.com or use the “online request form”.

The two major EB-5 visa requirements are investing USD 1,000,000 (or USD 500,000 in Targeted Employment Area) in an approved EB-5 investment project and creating or sustaining 10 full-time jobs using that investment.

In this article let us concentrate on EB-5 job creation guidelines, paying specific attention to indirect EB-5 job creation.

The EB-5 investor visa program requires EB-5 investment funds to create or sustain 10 full-time jobs for US citizens, lawful permanent residents or other immigrants legally authorized to be employed in the United States.

An important advantage of investing in a project with EB-5 Regional Center designation is the “indirect” nature of the EB-5 job creation, which is less difficult to achieve than the “direct” creation of 10 new jobs. In this case, the EB-5 requirement to create at least 10 new full-time jobs can be satisfied by showing that as a result of the EB-5 investment and the activities of the new enterprise at least 10 jobs will be created directly or indirectly in the region through an employment creation multiplier effect. To make it clear, these Jobs do not have to be directly related to the EB-5 project and can, for example, include certain construction jobs during the construction phases of the project, or jobs created at other businesses as a result of the EB-5 project being developed.

 The jobs must be proven to exist at time of EB-5 visa application or there must be proof that the required jobs will be created before the end of the two-year period of Conditional Permanent Residence.

Both EB-5 Regional Centers and EB-5 investors can take advantage of “indirect” EB-5 job creation to make it easier to meet the EB-5 visa requirements. However, it is not always safe to rely strictly on indirect job creation. Therefore, we recommend EB-5 investors to look for EB-5 Regional Center projects that provide a combination of direct and indirect EB-5 job creation.

For information about which of the currently active Regional Center projects utilize both direct and indirect job creation to satisfy the investor’s EB-5 requirements, please contact Fred Burgess or Joe Sloboda via email at info@exclusivevisas.com or by submitting our “online request form.”

According to a recent announcement by Dallas Mayor Tom Leppert, a $15 million call center in the city that is expected to employ 300 people will soon open using funding from the city's EB-5 regional center.

The Dallas Morning News reports that while an exact location for the facility has not yet been chosen, the Encore Enterprises call center will receive investments from 30 foreign nationals through the EB-5 visa program.

Through this program, foreigners can obtain U.S. green card eligibility by making an investment of $1 million (or $500,000 in some areas) in an American company or project that either creates or maintains at least 10 full-time jobs.

The U.S. Citizenship and Immigration Services (USCIS) defines an EB-5 regional center as "any economic unit, public or private, which is involved with the promotion of economic growth, improved regional productivity, job creation, and increased domestic capital investment."

Leppert and city council member Ron Natinsky have reportedly been attempting to promote the EB-5 regional center in order to bring in more investment money.

According to a news release, other future projects utilizing such funding could potentially include a "well-known restaurant chain."
 

The new owners of the Colgate plant in Clarksville, Indiana, are optimistic that they can add a significant number of new jobs through the redevelopment of the property, WDRB Fox 41 reports.

First, however, these owners plan to look all over the world for investors, in order to make the dream of new jobs a reality. According to the news provider, the Boston Development Group, which now owns the nearly 60 acres and the plant buildings, is seeking between 200 and 300 people around the world to invest a total of at least $100 million to create new homes and businesses.

"The foreigners' funds are used for the job creation and increased development," Katherine Johnson, CEO of the Midwest Center for Foreign Investment (MCFI), told the news provider.

Isabel Henke, an investor recruiter at MCFI, added that "they look at us as the most viable way to invest in jobs for Americans in order to apply for the EB-5 visa and to be able to stay in the U.S."

Through the federal EB-5 visa program, foreign nationals can obtain U.S. green card eligibility by making an investment of $1 million (or $500,000 in some areas) in an American company or project that either creates or maintains at least 10 full-time jobs.

According to the U.S. Citizenship and Immigration Services (USCIS), the MCFI is an approved EB-5 regional center. The USCIS defines such regional centers as "any economic unit, public or private, which is involved with the promotion of economic growth, improved regional productivity, job creation, and increased domestic capital investment."

Some of the industries that the MCFI focuses on include agriculture, green energy, bioscience, hospitality tourism and retail, according to the USCIS.

According to Johnson, the MCFI CEO, one investor from India has already been recruited for the redevelopment project.

Clarksville officials are reportedly hoping that the redevelopment of the site will pave the way for a mix of homes and businesses, a significant shift from the plant that has manufactured soap and toothpaste over the last 80 years, according to the news source.

In the three years since the plant closed, there have been a number of proposals that have ultimately fallen through, so Town Board president Greg Isgrigg said he is relieved with the property's new potential redevelopment.

"Even though it's been a short period of time, usually factories sit for a long time," Isgrigg told the news provider. "So we're very thankful for Katherine [Johnson] and her group to come and bring this back to life."
 

CaerVision, a Maryland-based company that specializes in internet video systems for healthcare offices, could soon expand to employ 100 people in the Crown American building in Johnstown, Pennsylvania, the Tribune-Democrat reports.

Local officials believe that their partnership with company CEO Jack Zhang could ultimately increase jobs and foreign investment in the area, according to the news provider.

"We believe that CaerVision expanding here is just the tip of the iceberg," said Linda Thomson, Johnstown Area Regional Industries (JARI) president.

Zhang, a native of China, reportedly founded the company in 2006. Soon after the company was founded, CaerVision contacted JARI, largely thanks to the federal EB-5 visa program, Thomson said.

"Johnstown happens to be a place that is eligible for accepting foreign investment, and then the investor gets a visa," Thomson said, referring to the EB-5 program.

Through the program, foreign nationals can obtain U.S. green card eligibility by making an investment of $1 million (or in some areas $500,000) in an American company or project that either creates or maintains at least 10 full-time jobs.

Local officials reportedly did everything they could to attract CaerVision, including a trip to China by Thomson in the fall of 2009 to meet with potential investors and members of the company's supply chain, the news source said.

"For the past three years, we have been developing this relationship and looking for ways to help them grow here," Thomson told the Tribune-Democrat.

Zhang added that the company has already maintained a presence in Johnstown for more than a year. He said while there are already a few employees, he expects that number to increase to up to 100 "in the near future."

The goal of the company is reportedly to "transform" the offices of physicians by implementing digital media systems, according to Zhang. Waiting room monitors display important information based on each doctor's preference and practice area, and this information is automatically updated via the internet, according to the news provider.

The expansion of the company in the Johnstown area may also lead to an increase in foreign investment in the community. Just a few months ago, Zhang invited Thomson to a meeting of some of China's top business leaders in Rockville, Maryland, the news source said.

"That’s the kind of exposure we’re getting," Thomson said. "Building these relationships is good for our region."