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Multiplier Effect

Also known as: Economic multiplier, indirect job creation multiplier, RIMS II multiplier

Technical · EB-5 Glossary

Definition

An economic concept used in EB-5 to calculate the total number of jobs (direct, indirect, and induced) created by an investment. Regional center projects use economic models (RIMS II from the Bureau of Economic Analysis or IMPLAN) to estimate the multiplier effect of the investment on the local economy.

Context

The multiplier effect allows regional center projects to count significantly more jobs than the actual payroll employees, enabling larger projects to support more EB-5 investors. The specific multiplier varies by industry and geographic area.

Derived|BEA RIMS II methodology; 8 CFR § 204.6(j)(4)(iii)

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