Qualifying capital of one million and fifty thousand United States dollars, or eight hundred thousand for a qualifying targeted employment area or infrastructure project subject to the statutory adjustment beginning in January 2027, placed at risk in a new commercial enterprise that creates at least ten full-time jobs for qualifying employees, with lawful source and path of funds and the investor engaged in management or policy formulation.
Four elements, and the jobs element belongs to the investor
Capital, risk, jobs and engagement are all tested, and the last two are the ones investors most often assume somebody else is carrying. The enterprise can be run by professional managers, but the requirement that the investor participate through management or policy formulation is personal and has to be reflected in the partnership or operating documents. The jobs requirement is likewise the investor's problem rather than the promoter's, because it is the investor whose conditions are removed or not.
Hypothetical example: a subscriber to a rural cold-storage offering is assured that job creation is handled by the sponsor's economic report and needs no attention from him. The report may well be sound, but if the building is delayed and the modelled jobs never materialise, it is his petition to remove conditions that fails, and the sponsor's assurance is not evidence.