Job Creation 2 of 3

Question: In a case where the EB 5 business is a real estate development, which leases space to tenant businesses who then hire employees, do the following factors increase the likelihood that those tenant’s jobs can count toward satisfying the job requirements of the development’s EB 5 investors:

3. The tenant business received a loan from the development

Answer:

3. The tenant business received a loan from the development

This is acceptable with caveats.  This effectively represents the co-mingling of capital. Similar to the quid pro quo expenditure agreement referenced above, however, this will render the agency vulnerable to fraud because the tenants could form an agreement beyond the adjudicative scope of USCIS to funnel the funds back to the developer.  In addition, USCIS would need to define the constraints of the loan amounts and duration.  Otherwise, the developer could loan $0.01 to a tenant to take credit for any jobs created.  Finally, the tenant business must verify that the jobs are new jobs not transferred from elsewhere.

Taken directly from USCIS EB 5 Immigrant Investor Program Quarterly Stakeholder Engagement on May 1, 2012.