Employment risk is one of the two major risks in U.S. investment immigration. Worldway immigration experts believe that to carefully manage employment risk in EB-5 projects, one should analyze several key aspects, such as whether the employment report was authored by an authoritative economist, and whether the methodology and employment data meet the requirements of the USCIS. Among these, it is crucial to clarify the specific significance of the data in the EB-5 project's employment report.
How should one interpret the specific data in the employment report for a U.S. EB-5 investment immigration project? Worldway will provide a detailed analysis using the DLJ Four Seasons Hotel and Resort project as a case study:
![[Expert Insight] How to Interpret Employment Reports for U.S. EB-5 Investment Immigration Projects](https://www.worldwayhk.com/KindEditor/attached/image/20151023/20151023163345_4134.png)
The image above is taken from the employment report for the DLJ Four Seasons Hotel and Resort project. This report was authored by the renowned U.S. economist Michael Evans. The expenditure-based model used has been recognized by the USCIS, and under this methodology, the project's ability to create 3,268 jobs has also been approved and accepted by the USCIS.
From the specific data provided in the employment report, we can see:
1) The first row shows 2,229.5 jobs created by hard construction costs.
2) The second row shows 320.3 jobs created by architectural design and engineering-related service expenditures (soft construction costs); the vast majority of these jobs are generated during the construction process.
3) The third row shows 81.9 jobs created by the purchase of hotel furniture and equipment; this part only calculates indirect and induced jobs.
4) The fourth row shows 637.2 jobs generated by the operation of the project after completion.
In summary, according to the employment report, the DLJ Four Seasons Hotel and Resort project can create a total of 3,268 full-time jobs, which is far higher than the 2,300 jobs required by the USCIS, achieving an employment multiplier of 1.42. It is particularly worth noting that the first two items—hard construction costs and architectural design and engineering-related service expenditures—create a total of 2,559.8 jobs, and these jobs are all created during the construction process. This means that as long as the project construction is completed, these jobs are created and the USCIS requirements are already met. As can be seen from the table, this project does not calculate jobs created by hotel guest spending, which appears more conservative.
[Conclusion] The DLJ Four Seasons Hotel and Resort project has sufficient job creation, and the jobs generated by construction alone already meet the requirements of the USCIS. In other words, as long as the project is successfully completed, the jobs required by EB-5 investors will have been fulfilled. Currently, the project's strong developer, DLJ, has already used its own funds to start construction in May 2014 and has signed a completion guarantee; job creation has already begun, significantly reducing the risk for EB-5 investors when obtaining permanent green cards through I-829 approval. Of course, the DLJ Four Seasons Hotel and Resort project also has many other advantages, such as a full set of application documents already receiving USCIS I-526 exemplar approval, a powerful developer, management by the DLJ multi-billion dollar real estate fund, and low investment and repayment risks.
[Special Note] EB-5 project employment report materials are professional and complex, and are closely related to the actual situation of the project. Each project's employment report is different and must be treated according to specific circumstances. For more details on precautions for interpreting employment reports and the job creation of the DLJ Four Seasons Hotel and Resort project, please inquire at: 400-138-2929