US EB-5 Visa Overview
The United States has always been a popular destination for businessmen and professionals seeking the American dream by establishing a company. The Immigrant Investor Program, also known as the EB-5 Visa, provides a pathway for investors and their immediate families to obtain a Green Card and become lawful permanent residents of the U.S.
The first critical choice for investors is whether to invest directly or through an EB-5 Regional Center. Understanding the differences between these pathways is key to achieving your immigration and business goals. Learn more: EB-5 Immigrant Investor Program
EB-5 Immigrant Investor Visa Pathways
- Direct EB-5 Investment: Requires an investment in a real operating business that results in 10 full-time jobs. I-526 approval for direct investment is often faster than through a Regional Center. Investors can withdraw funds after business obligations are met.
- Regional Center EB-5: Investments are pooled, and job creation can be direct or indirect. Typically involves a 5–9 year lock-in period, with less control for the investor.
In a Direct Investment, the investor can either develop a venture based on an innovative idea or invest in an existing operating business, taking responsibility for creating and maintaining jobs for qualified U.S. workers (excluding family members).
Top Benefits of an EB-5 Direct Investment
- Shorter Timelines to Start Business – Unlike Regional Center projects that take 9–12 months for pre-approvals and compliance, Direct EB-5 investments allow immediate business development, marketing, and external funding.
- Lower Administrative Fees – Direct investment minimizes overhead costs, allowing full deployment of capital toward the business, unlike Regional Center fees, which are in addition to the investment amount.
- Higher Control on Business – Investors directly manage and operate the business, unlike Regional Centers where control is limited.
- Potential for Higher ROI – Direct EB-5 offers uncapped returns, similar to entrepreneurial ventures, whereas Regional Center investments tend to generate lower returns due to risk pooling.
Key Differences: EB-5 Direct Investment vs. Regional Centers
| Advantages | Direct EB-5 Investment | Regional Center EB-5 Investment |
|---|---|---|
| Type of Investment | Direct investment | Indirect investment |
| Source of Funds | Investor provides proof of funds | Investor provides proof of funds |
| Job Creation & No. of Jobs | 10 direct jobs | Direct/Indirect jobs per Regional Center model |
| Ownership | Investor owns equity | Investor gives a loan for ~5 years with exit option |
| Management | Investor manages company | Regional Center appoints management company |
| Control | Full control | Minimal control; investor is one of many |
| Experience Required | Must have industry experience | No experience required |
| Timelines | 12–18 months | 18–24 months |
| Return on Investment | Higher potential | Lower returns, less risk |
Conclusion
Prospective EB-5 investors can choose Direct Investment or Regional Center routes. The choice depends on your investment goals, control preference, and risk tolerance. Direct EB-5 is ideal for investors seeking greater control and higher ROI, while Regional Centers offer simplified administration with less personal involvement.
Talk to an expert: Contact XIPHIAS
How to Learn More About Eligibility and Application Process
Reach our expert consultants at +91-9019-400-500 or email [email protected].
FAQs
Q1. How much do I need to invest for EB-5 and what counts toward the minimum? A. Minimum investment depends on TEA designation. Only capital investment and job creation funds count; administrative/legal fees are excluded.
Q2. For Direct EB-5, how are the 10 jobs proven to USCIS? A. Investors must show 10 full-time W-2 jobs for qualified U.S. workers using payroll records, I-9s, and organizational charts during I-829 processing.
Q3. Is a Regional Center safer than Direct EB-5? A. Regional Centers diversify risk and allow indirect job creation, but typically provide lower ROI and less control. Direct EB-5 provides full management control and potentially higher returns, but requires job creation responsibility.
