When navigating the EB-5 program, it’s essential to understand the difference between direct and indirect jobs. This distinction is crucial for meeting the program’s job creation requirements. The EB-5 program requires that 10 full-time jobs are created.
What are Direct Jobs?
Direct jobs are positions created by the EB-5 enterprise itself. These jobs are filled by U.S. citizens or green card holders working directly for the company. For example, if an EB-5 investment is used to open a new restaurant, the staff hired to run the restaurant represent direct jobs.
What are Indirect Jobs?
Indirect jobs, on the other hand, are created as a result of the economic activity generated by the EB-5 enterprise but are not directly employed by it. These can include jobs in supporting businesses or services that emerge due to the new enterprise. For instance, if an EB-5 investment is used to build a hotel, the construction might lead to the creation of nearby restaurants, shops, or service providers that cater to hotel guests. These jobs are considered indirect because they result from the economic impact of the original EB-5 project.
An economist can produce a report to quantify these indirect jobs, demonstrating their creation as a result of the EB-5 investment.
Counting Indirect Jobs
Indirect jobs can be counted towards the EB-5 program’s requirement of creating 10 full-time jobs, but this depends on the type of investment:
- Regional Center Program: Investors in the regional center program can count both direct and indirect jobs towards the job creation requirement.
- Direct Investment Program: Investors in the direct investment program can only count direct jobs. Indirect jobs do not qualify under this program.
To better understand the job creation requirements and how indirect jobs can benefit your EB-5 application, utilize our free resources and book a consultation with our experienced team.
