When making an EB-5 investment, it’s crucial to ensure that you receive not only a conditional residency approval, but a permanent 10-year green card. First, it’s important to know what input model and jobs the economist has relied upon for EB-5 purposes in the economic report – i.e. construction expenditure, revenues, guest expenditures, tenant occupancy, etc. Construction expenditures jobs are less worrisome, the project simply needs to show that the expenditures took place. On the other hand, operational and tenant occupancy jobs are the riskiest.
Additionally, you want to ensure there is a “job cushion” – this ensures that the estimated number of jobs created are above the minimum required. For example, if a project requires 1,500 jobs to be created but it will create 3,000 jobs – that’s a 50% job cushion. EB-5 investors should try to find projects with a job cushion of 30% or above.
Learn more about the EB5 process here.
