A question we come across often while meeting potential clients and agents around the world is “can an EB-5 investor claim jobs that were already created prior to their investment?” and the short is yes! However, there are a few important factors to consider such as what type of jobs were created, the job creation calculation model that was used, and if it was contemplated in the business plan with pre-approval from USCIS.
For example, in the case of Four Seasons New Orleans project, we are relying on construction expenditure jobs which is the safest form of job creation. In the context of the EB-5 program, “construction expenditure jobs” refer to the jobs created as a result of the expenditures made during the construction phase of an EB-5 project. During the construction phase of an EB-5 project, various expenses are incurred, such as materials, labor, equipment, and services. Construction expenditure jobs refer to the jobs that are created as a result of these expenditures.
Additionally, the project’s business plan contemplated that EB-5 money could be used to pay direct project expenses or pay down more expensive capital which covered these expenses and that creates a “job nexus.” A “job nexus” refers to the connection between the investor’s funds and the creation of jobs. Therefore, since there is a “job nexus,” the jobs that were already created can be allocated to investors even though they were created prior to their investment. For more info, please contact us at info@pathwayseb5.com.
