Regional Center Economic Analysis: Using a State-wide Analysis

Question:

“Our Economic Analysis used State-wide RIMS II data to project FT direct, indirect and induced jobs when $1million is invested. We accepted lower State-wide predictions of job creation in order to be able to apply our analysis to any business which was included in the business categories included in our Analysis anywhere in the State, even though an analysis based on the exact location of the business may result in higher job projections. So, to confirm, if a business is selected that is in one business category and the State wide economic analysis predicts more than enough jobs created for the number of EB5 investors involved, is there any need for a separate economic analysis? EXAMPLE: An investor invests $1million in a restaurant and the economic analysis concludes that a restaurant in Florida will, with a $1million investment, create more than 10 direct, indirect and induced jobs, no further economic analysis is needed to be submitted with the I-526, correct?”

Answer:

• If this is a state-wide chain it would have state-wide impacts. An individual establishment would only have local impacts
• To choose the proper multipliers, you look at the area supplying the majority of inputs—restaurant is mainly labor.
• Note—state-wide impacts are usually larger than any single county or group of counties.

Taken from EB-5 Immigrant Investor Program Stakeholder Meeting California Service Center March 17, 2011