One of the ways foreign investors can gain permanent residency in the US is if they satisfy the requirements of the EB-5 visa program. One of these requirements is that investors start their own business or invest in an existing business or enterprise. In both instances, new job creation is one of the requirements.
One of the original purposes of the EB-5 visa program was to stimulate the US economy through additional capital investment in US business and in the creation of new jobs for US workers.
To meet this requirement, a new business or an investment in an existing business or enterprise must create a minimum of 10 new full-time jobs for qualify US workers within two years, although under certain circumstances the jobs can be created within a reasonable time after the initial two year period. The clock starts ticking when the immigrant investor applies for admission to the US as a conditional permanent resident.
The requirement is that either direct or indirect jobs must be created or preserved as a result of the investment.
Direct versus Indirect Jobs
Direct jobs are defined as actual identifiable jobs for qualified US workers located within the commercial enterprise into which the EB-5 investor has invested his or her capital.
Indirect jobs are defined as jobs that have been shown to be created collaterally or as a result of capital invested in a commercial enterprise affiliated with a regional center by the EB-5 investor. The foreign investor can only use the indirect job calculation if the investment is affiliated with an approved regional center.
One exception to the full-time job requirement is the creation of a job sharing arrangement. This is when two or more qualifying workers share a full-time position. The two employees sharing the job must be permanent and share the associated benefits normally related to the full-time position.