The United States has always been a popular destination for businessmen and professionals looking to realize their American dream by establishing a company. The EB-5 Immigrant Investor Program is one of the most effective ways to achieve this goal. It allows investors and their immediate families to obtain a U.S. Green Card and become lawful permanent residents.
Choosing the right investment option is critical. Investors can either make a Direct EB-5 Investment or invest through a Regional Center. Here’s why Direct EB-5 Investment is often the preferred choice for those seeking faster approval, more control, and higher returns.
What is EB-5 Direct Investment?
A Direct EB-5 Investment requires an investor to invest in a real operating business that creates at least 10 full-time jobs for U.S. workers. Unlike Regional Center investments, direct investment allows the investor to actively manage the business and withdraw their investment if needed.
Key points of Direct EB-5 Investment:
- Faster I-526 approval than Regional Center projects
- Flexibility to start a new business or invest in an existing one
- Full control over day-to-day operations
- Responsibility for creating and maintaining jobs
Top Benefits of an EB-5 Direct Investment
1. Shorter Timelines to Start Your Business
Direct EB-5 investments allow investors to begin operations almost immediately. Unlike Regional Center projects that involve lengthy administrative processes, economic reports, and pre-approvals, a Direct Investment can move faster to develop, market, and fund the business.
2. Lower Administrative Fees
Regional Center investments require administrative, legal, and filing fees in addition to the investment amount. Direct EB-5 investment allows investors to save on these costs and allocate the entire capital toward the business.
3. Greater Control Over the Business
Direct EB-5 investors manage the company themselves, giving them full authority over operations, strategies, and growth. Regional Center investors have very limited influence, usually only voting on major decisions.
4. Higher Return on Investment (ROI)
Direct investments offer unlimited earning potential, similar to owning a startup or entrepreneurial venture. Regional Center projects tend to generate lower returns due to shared ownership and limited control.
EB-5 Direct Investment vs Regional Center Investment
| Advantages | Direct EB-5 Investment | Regional Center EB-5 Investment |
|---|---|---|
| Type of Investment | Direct | Indirect |
| Source of Funds | Investor provides proof of funds | Investor provides proof of funds |
| Job Creation | 10 direct jobs | Direct/Indirect jobs based on formulas |
| Ownership | Investor owns equity | Investor gives a loan for 5 years |
| Management | Full control by investor | Managed by Regional Center |
| Control | Complete control | Minimal control |
| Experience Required | Must have relevant experience | No experience required |
| Timeline | 12–18 months | 18–24 months |
| ROI | Higher, due to active management | Lower, limited by project structure |
How XIPHIAS Immigration Can Help
XIPHIAS Immigration provides end-to-end guidance for EB-5 Direct Investment applicants:
- Assessing your eligibility for EB-5 Direct Investment
- Helping you select and structure a business that meets USCIS requirements
- Preparing documentation for I-526 submission
- Supporting your application through USCIS
- Offering advice on job creation and compliance
Our experts ensure that investors maximize their control and returns while efficiently navigating the EB-5 process.
To Know More About the Application Process and Your Eligibility
Contact our expert consultants at +91-9019-400-500 or email [email protected].
FAQs
Q1: What is the minimum investment for EB-5 Direct Investment? A: The minimum investment is $1,050,000 for most projects, or $800,000 in targeted employment areas.
Q2: How long does it take to get a Green Card through EB-5 Direct Investment? A: Direct EB-5 investments typically take 12–18 months for I-526 approval, faster than Regional Center investments.
Q3: Can family members be included in an EB-5 Direct Investment application? A: Yes, spouses and unmarried children under 21 can obtain Green Cards along with the primary investor.
Q4: Is there more control in Direct EB-5 than Regional Center investment? A: Yes, investors in Direct EB-5 have full control over business operations and decision-making.
