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Preeti Sinha

If I cannot guarantee job creation how can I give investors confidence about the likelihood of job creation?

Answers

Philip Cohen
January 27, 2016 10:26 AM  Philip Cohen

Likelihood of job creation can be enhanced by considering certain strategies, such as:
-using bridge loans to speed up expenditures into the project so that the project can effectively create indirect jobs sooner (where expenditures were used by the economist to generate their indirect job calculations)
-taking all measures possible to get a project underway as soon as possible
-arranging for backup financing: in an event where all the required EB-5 capital may not be able to be raised, investors will have added confidence in projects that have arranged for alternative/backup financing to replace EB-5 capital. Again, this will help to satisfy the expenditure requirements in an economic impact model in order to generate the corresponding number of indirect jobs.
-Carefully working with your economist to determine which inputs will be used in the economic model: E.g. If expenditures were used as the inputs to the economic model, then this is much easier to achieve (and therefore to create the corresponding indirect jobs) because all the project has to do is make the expenditures used as described. Job creation may be perceived as more risky, however, in situations where inputs may be harder to achieve, for example using project revenues, until the revenue numbers used in the model have been achieved.

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