Sandra Dyche serves as the managing principal of CapSpan, a financing, project sourcing, and investment management firm based in New York City involved with high-quality EB-5 projects nationwide. Here she answers questions on the type of job production required to participate in the U.S. Citizenship and Immigration Services (USCIS) EB-5 program.
Q: What is the Federal EB-5 program?
Sandra Dyche: The EB-5 program is designed to spur economic activity in the United States by encouraging foreign investment from investors who wish to procure a U.S. green card in short order. This immigrant investor must invest at least $1,000,000 or $500,000 if the investment is made in rural or high unemployment area, in a new business venture that will create a minimum of 10 full-time positions for qualified employees. These jobs can be produced either directly or indirectly.
Q: What is the difference between direct jobs and indirect jobs?
Sandra Dyche: Direct jobs are full-time employment positions of qualified employees that amount to at least 35 hours per week by the new commercial enterprise. A qualified employee is a U.S. citizen or any immigrant permitted by law to work in the Unites States, such as a permanent resident. Direct jobs that are temporary, transient, intermittent or seasonal in nature cannot be considered full-time jobs per EB-5 regulations. The only exceptions are jobs of this type that are expected to last for at least two years.
Q: What is an indirect job?
Sandra Dyche: An indirect job is one that exists outside the new business venture but is created as a byproduct of the project’s existence. For example, an indirect job can include one held by an employee of a materials supplier or service provider used by the new business venture. Indirect job creation must be certified by the use of reasonable and established economic methodologies that prove the investment of capital and creation of direct jobs will result in the required amount of indirect jobs as well.
Sandra Dyche was a co-founder and principal of New York City Regional Center, which has been certified as the top-performing EB-5 Regional Center in the U.S. There she led in converting foreign capital into real estate ventures on a large scale in cooperation with NYC municipal agencies and other leading real estate developers.