What Happens if EB-5 Jobs are NOT Created?
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 email@example.com or use the “online request form”.