You know that investing in an EB-5 regional center is a great way to start your family’s journey of permanent residence in the U.S., but you are not sure if the required number of jobs will be created by your project. Your visa depends on creating at least 10 new full-time positions for workers, but how can you tell if that number is sustainable before you invest your funds?
U.S. Citizenship and Immigration Services (USCIS) knows that not all jobs created in EB-5 regional centers are a direct result of hiring new employees. In most cases, the employment quota is met with the creation of indirect jobs—positions that have been created as a result of the investor’s capital and increased visitor spending in the region. Indirect jobs may also come from continued increased revenue. If your business does well for an extended period, surrounding businesses are more likely to see an increase as well.
It can be difficult to demonstrate to the USCIS how many indirect jobs will be created by your EB-5 regional center project. USCIS requires "reasonable methodologies" to calculate future employment numbers for your business. In most cases, these are satisfied using input-output economic modeling systems.
Here are a few examples of economic input/output models approved by USCIS:
- Regional Input-Output Modeling System (RIMS II)
- Regional Economic Models, Inc. (REMI)
- Regional Dynamics Economic Analysis Model (REDYN)
- Impact Analysis for Planning (IMPLAN)
Generally, these models take existing data such as census, income, and yearly revenue in the area, and project future changes by multiplying those numbers and showing the impact across the region. Investors should realize that there are many ways jobs can be created by a single business. Neglecting to explore the full economic impact of your investment could put your visa at risk.
Jatoi & de Kirby, A.P.C. can help you determine how many jobs you are able to claim as part of your regional center project. Contact us for more information.