EB-5 Direct Investments: Definition, Benefits, & Best Investment Paths

Back January 31st, 2025 Aaron Hammon

What Is an EB-5 Direct Investment?

A direct EB-5 investment involves the investor directly funding a new commercial enterprise or restructuring an existing business. Unlike regional center investments, direct investors must actively manage the business and are solely responsible for creating and documenting at least 10 full-time jobs for U.S. workers.

This hands-on approach can be appealing to entrepreneurs who want full control over their investment and operations. However, the responsibility of overseeing day-to-day business activities and ensuring compliance with EB-5 requirements can be demanding, especially for those unfamiliar with U.S. business practices.

 

Challenges of EB-5 Direct Investments

While direct investments offer the advantage of control, they also present significant challenges that may deter many investors:

  • Active Management Requirement: Investors must be involved in day-to-day operations, which can be challenging for those unfamiliar with U.S. business practices. Active management can be particularly difficult for investors who have other professional or personal commitments.
  • Job Creation Documentation: Direct investors must create and document 10 full-time jobs for qualifying U.S. workers. This involves detailed record-keeping of all employees, proving that each job is full-time and permanent and that all employees are eligible to work in the U.S.
  • Higher Risk and Responsibility: The ultimate success of the EB-5 application relies entirely on the performance of a single business. If the business fails to create the required jobs or faces financial difficulties, both the investor’s capital and immigration status could be at risk.

What Is an EB-5 Regional Center Investment?

Regional center investments offer a more passive alternative to direct investments. With this approach, investors contribute capital to a project managed by a USCIS-approved regional center. The regional center handles project oversight, regulatory compliance, and job creation, relieving the investor of day-to-day responsibilities.

 

Benefits of Regional Centers Over Direct Investments

Regional centers address many of the challenges associated with direct investments by offering:

  • Pooled Investment Structure: By pooling funds from multiple investors, regional centers enable participation in large-scale, professionally managed projects that would otherwise be inaccessible to individual investors.
  • Simplified Job Creation Requirements: Regional centers can count indirect and induced jobs toward the 10-job requirement, making it easier to meet USCIS criteria. Direct investments, by contrast, can only count direct jobs.
  • No Active Management Required: Investors are not required to actively manage day-to-day business operations, allowing them to take a more passive role while still fulfilling EB-5 requirements.
  • Geographic and Industry Flexibility. Regional centers can sponsor projects across various locations and industries. This provides investors with more options to choose investments that align with their interests or risk tolerance.

 

Direct vs. Regional Center Investment Requirements

While both direct and regional center investments must meet the same EB-5 requirements, working with a regional center simplifies the process:

  • Minimum Investment Amount: Both direct investments and regional center investments have the same minimum investment amounts: $800,000 for projects in Target Employment Areas (TEAs) or $1,050,000 for non-TEA projects. However, regional centers often have more experience in identifying and developing projects in TEAs, potentially allowing investors to qualify for the lower investment threshold.
  • Job Creation: Regional center projects can count direct, indirect, and induced jobs, which significantly reduces the burden of job creation. Direct investments must rely solely on direct job creation.
  • Compliance and Documentation: Working with a regional center can make it significantly easier to meet compliance with EB-5 regulations and document all necessary aspects of the investment and job creation. This expertise can significantly reduce the risk of application denials or delays due to documentation issues

Why Regional Centers Are Often the Best Investment Path

Regional centers offer several key advantages that make them an attractive option for most EB-5 investors:

  • Access to High-Quality Projects: Regional centers often have access to high-quality, large-scale projects that would be out of reach for individual investors. These projects often have lower risk profiles and higher success rates due to their scale and the expertise behind them.
  • Reduced Personal Involvement: Investors can pursue their immigration goals without the need to become full-time business managers, making regional center investments ideal for those with other commitments or limited knowledge of U.S. business practices.
  • Lower Risk and Higher Success Rates: Professional management and expertise offered by regional centers often translate into lower risk for investors. Many regional centers have established track records of successful EB-5 applications and investment returns, providing greater peace of mind for investors.

 

Contact Behring Regional Center Today

While a direct investment EB-5 application could be suitable for some investors, regional centers can provide a more accessible, less risky, and more efficient path to achieving EB-5 visa goals. For investors seeking a sound investment opportunity along with a secure pathway to U.S. residency, an experienced regional center like Behring Regional Center can offer the best of both worlds. With our track record of success and expert team, we’re committed to guiding investors through every step of their EB-5 journey.

 

Ready to learn more?

Schedule a free EB-5 consultation to learn how our team of EB-5 experts can help you navigate EB-5 requirements and secure a path to U.S. permanent residency for you and your family.

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