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Why is Job Creation safer with a Regional Center Project?

Regional Centers pool investments from multiple EB-5 investors, which can lead to larger-scale and more impactful projects. Another advantage is that all other sources of capital for the project are counted for job creation in addition to the EB-5 capital. This significantly boosts the job creation of a Regional Center Project and usually gives EB-5 investors a comfortable job creation cushion over the required 10 jobs.

Also, investing in a Regional Center project offers the significant benefit of being able to count induced, direct, and indirect job creation towards fulfilling the program’s job creation requirements. This approach is generally more flexible for investors compared to direct standalone EB-5 investments, where job creation is limited to direct payroll employees, evidenced by W-2 forms. In direct investments, failure to maintain at least 10 full-time employees for the two-year Conditional Residency period could jeopardize the approval of the I-829 Petition for Permanent Residency.

Likewise, Regional Centers can use USCIS-approved economic models, like RIMS II, to calculate job creation based on the economic impact of the capital spent in construction and from project revenues. This calculation encompasses direct jobs (such as construction workers), indirect jobs (workers in the supply chain for materials and services), and induced jobs (generated by the spending of wages by direct and indirect workers). Therefore, job creation in Regional Center projects tends to be more extensive and predictable, offering a distinct advantage over direct investment scenarios.