The programme
Affiliated job-creating entity
Also called affiliated JCE, affiliated job creating entity.
A job-creating entity in the regional center program that is controlled, managed or owned by any of the people involved with the regional center or the new commercial enterprise, those people being the ones who hold substantive authority, directly or indirectly, over the investors' money.
What it decides
The label decides which duties follow the money once it leaves the new commercial enterprise. Capital transferred to an affiliated job-creating entity must be held in a separate account until it is deployed into the capital investment project it was intended for, and within 30 days of that deployment the affiliated entity must give the fund administrator written notice that a construction consultant, or another individual authorized by the Secretary, has verified the money went into the project. A job-creating entity that is not affiliated carries neither duty, which is what makes the classification worth arguing about. The regional center annual statement on Form I-956G must describe pending material litigation and bankruptcy proceedings involving an affiliated job-creating entity, along with any resolved in the preceding fiscal year, and must account for the fees collected from investors through it. Affiliation also shuts one door to foreign state money: an investment fund or vehicle owned wholly or partly by a bona fide foreign sovereign wealth fund, or by a foreign state-owned enterprise permitted to do business in the United States, may be involved in the ownership, though never the administration, of a job-creating entity, but only one that is not affiliated. An affiliated job-creating entity also counts among the parties associated with a regional center for securities compliance, and it must keep a written agreement with every direct or third-party promoter acting on its behalf.
Related terms
- Commercial enterpriseA commercial enterprise is any for-profit activity formed for the ongoing conduct of lawful business, in any entity form, publicly or privately owned, and not a noncommercial activity such as owning and operating a personal residence. For petitions filed on or after 15 March 2022 the term that governs is new commercial enterprise, which the statute defines more narrowly: a for-profit organization formed in the United States that receives, or is established to receive, EB-5 capital.
- Job-creating entityA job-creating entity, or JCE, is the United States business in a regional center EB-5 deal that receives the investment capital, either straight from the investors or through the new commercial enterprise, and is responsible for creating the ten full-time jobs each investor's petition must count.
- New commercial enterpriseA new commercial enterprise, usually shortened to NCE, is the for-profit entity formed in the United States that receives the EB-5 investor's capital and gives the investor an equity stake in return, and it is the enterprise the petition is built around.
- Regional centerA regional center is an economic unit, public or private, that USCIS has designated to sponsor pooled EB-5 investment within a defined, contiguous and limited geographic area, and it is the only route on which a petition may count indirect and induced jobs.
- Form I-956GForm I-956G, Regional Center Annual Statement, is the yearly filing every designated regional center must submit to support its continued eligibility for designation, accounting for investor capital, project progress, fees collected from investors and required compliance certifications.
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