Job Creation

Question: Professional Employer Organizations (PEOs) are often used by small businesses.  They provide that the business hires, fires and controls the business’s employees, but the PEO technically employs the employees and leases them to the business.  This allows small businesses to save money on employee costs such as workers’ compensation and offer employee benefits more affordable, such as health insurance.  Do these employees count as employees of the business for purposes of EB5 job creation verification and compliance?

Answer:  The PEO concept may possibly be acceptable within the EB5 context in certain instances.  However, as the scope and nature of PEO contractual relationships vary greatly, the approvability of such an arrangement for EB5 purposes would have to be decided on a case-bycase basis through a review of the specific evidence of record.

Taken directly from USCIS EB5 Immigrant Investor Program Quarterly Stakeholder Engagement on May 1, 2012.