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Job creation is one of the main requirements of the Direct EB-5 program. Each EB-5 investor must be associated with the creation of at least 10 qualifying full-time jobs for U.S. workers.
For Direct EB-5, these are direct jobs within the qualifying business structure. In practical business terms, investors should expect to see a staffing plan built around employees of the business, commonly reflected through W-2 employment.
The number “10” sounds simple. What matters is whether the business has a realistic need for those employees and a plan to create and maintain the qualifying positions as required under EB-5 rules.
How Many Jobs Does Direct EB-5 Require?
A Direct EB-5 investment must create at least 10 qualifying full-time jobs for each EB-5 investor.
That means job creation becomes part of the business planning from the beginning. The company needs to consider how many employees it will require, which positions it expects to create and when those employees will be hired.
For businesses with more than one EB-5 investor, the overall job-creation plan also needs to support the number of investors relying on those jobs.
If you are new to the program, our guide to Direct EB-5 requirements explains how job creation fits alongside the investment amount, source of funds, investor role and other requirements.
What Kind of Jobs Count for Direct EB-5?
For a standalone Direct EB-5 investment, the qualifying jobs must come from direct employment by the new commercial enterprise. USCIS requires at least 10 full-time positions for qualifying employees for each investor.
In everyday business terms, this generally means looking at the W-2 staffing of the business rather than counting outside contractors or vendors toward the Direct EB-5 job requirement.
A qualifying full-time position generally requires at least 35 hours of work per week.
Certain individuals cannot count toward the requirement, including the EB-5 investor and the investor’s spouse and children.
Read more about job creation in our article: Direct EB-5 Job Creation.
Do All 10 Employees Need to Be Hired at the Beginning?
The business does not necessarily need all 10 qualifying employees on payroll when the investor begins the EB-5 process.
When some or all of the jobs will be created later, the business plan becomes important. It should show the positions the company expects to create and how the hiring schedule relates to the company’s operations and growth.
This is also where the type of business matters.
A restaurant, healthcare facility, manufacturing company and professional-service business have very different staffing needs. The hiring plan should make sense for the business being presented.
How Important is the Business Behind the Jobs
Creating 10 jobs on paper is not the goal. The business needs employees because it needs people to operate.
That is why we look at job creation alongside the operating business itself.
A staffing plan should make sense for the company’s size, business model and stage of development. The capital available to the company should also support the operating and hiring plan.
For an investor, this provides useful context when reviewing a Direct EB-5 opportunity. You are not only looking for the number 10. You are looking at whether the business has a reasonable basis for employing the people included in its plan.
Learn More About Direct EB-5
Job creation is one part of a larger Direct EB-5 structure. The investment amount, business, investor role, source of funds and operating plan also need to meet the program’s requirements.
For a broader explanation, visit TADE Consulting’s Direct EB-5 guide, where you can learn more about how Direct EB-5 works and TADE’s current Direct EB-5 opportunities.
Direct EB-5 Job Creation FAQ
Each Direct EB-5 investor must be associated with at least 10 qualifying full-time jobs for U.S. workers.
Qualifying employees directly employed by the new commercial enterprise can count toward the Direct EB-5 job-creation requirement when the positions meet the applicable EB-5 requirements.
Direct EB-5 focuses on qualifying direct employment by the new commercial enterprise. Businesses should not assume that independent contractors or outside vendors can be counted toward the 10 qualifying positions.
A qualifying full-time position generally requires at least 35 hours per week.
No. The EB-5 investor and the investor’s spouse and children do not count toward the required 10 qualifying jobs.
Read More About Direct EB-5
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