The regional center will establish an investment fund for the various EB-5 investors that have selected it, and these investors then purchase equity in the investment fund. At that point, the fund will purchase equity in a project (a hotel construction project, for example) or loan funds to the project.
The project can use its equity or loan funds to create jobs indirectly — by hiring new employees, for example. These jobs will be credited to the investors job-creation requirement for EB-5 immigration purposes. An “induced job”, created in the community at large when employees of the project spend their income in the community, also counts toward the 10-job requirement.
Although these investments are typically conservative, there is no guaranteed return on investment, and the investment could fail. Indeed, a failsafe investment would not qualify the investor for EB-5 immigration status, since all invested capital must be “at risk.”