Regional center vs. direct EB-5 investment: comparing the two paths

Whichever path an investor chooses, the basic EB-5 framework is the same. The investor must:

• Invest at least $1,050,000, or $800,000 in a targeted employment area (TEA) or qualifying infrastructure project, for petitions filed on or after March 15, 2022. A scheduled adjustment applies from January 1, 2027.
• Invest in a new commercial enterprise (the business that receives the investor's capital).
• Keep the capital at risk, meaning there is a genuine possibility of loss as well as gain.
• Show the capital came from a lawful source. See source of funds.
• Show the creation of 10 full-time jobs (at least 35 hours per week) for qualifying U.S. workers.
• After approval and visa availability, obtain conditional residence for 2 years, then file Form I-829 to remove conditions.

These are general features. The details of any particular offering or business plan are what determine its fit for an individual investor.

A regional center is an entity designated by USCIS (through Form I-956) to sponsor EB-5 investment in a defined geographic area. Designation concerns the entity's participation in the program; it is not an endorsement of any project the regional center sponsors. Regional centers must also file annual statements (Form I-956G).

Many families choose this path because it does not require them to manage a business, and because counting indirect and induced jobs can make the job requirement more achievable for large projects with many investors. In exchange, the investor depends on the sponsor's decisions and disclosures, and typically pays administrative fees on top of the investment.

Because this path depends on congressional authorization, the program's legislative status is worth understanding. See Regional Center Program authorization.

In a direct investment, the investor puts capital into a new commercial enterprise and the jobs must be created by that enterprise itself. Indirect and induced jobs elsewhere in the economy do not count. For a single investor, that means the business generally needs to employ at least ten qualifying full-time workers.

This path can suit entrepreneurs who want to build or acquire and expand a business in the United States and be involved in running it. It also means the investor carries the business's operational risk directly, and the job requirement must be met through real payroll. Restructuring or buying an existing business involves additional rules; a qualified U.S. immigration attorney can explain them. Our page for entrepreneurs covers this path further.

• Do you want to be actively involved in running a U.S. business, or would you prefer a passive investment?
• Do you have relevant business experience in the industry and location you are considering?
• Could the business realistically employ ten full-time workers per investor within the required timeframe?
• Are you comfortable relying on a third-party sponsor's management, reporting and repayment plans?
• How does the Regional Center Program's authorization timeline relate to your expected filing date?
• Where do you plan to live in the United States, and does either path constrain that choice?

• Review the full EB-5 requirements and process.
• If you are considering a regional center offering, work through the due diligence questions.
• Read our page for entrepreneurs if a direct investment interests you.
• Discuss which path fits your situation with a qualified U.S. immigration attorney. You can request a consultation to be connected with qualified professionals.