Many investors are eyeing the EB-5 Immigrant Investor Program because it is the fastest route to get a U.S. green card. But before diving in, there’s a critical decision: Should you directly invest in your own business or partner with a regional center?
This choice can significantly impact your journey. In this article, we’ll compare both options to help you determine which approach aligns best with your goals. Along the way, we’ll pose critical questions you should ask yourself to ensure you choose the path that fits your unique situation and preferences.
What Are the Main EB 5 Visa Investment Options?
The EB-5 Immigrant Investor Program has two main ways to invest and get a green card. You can either invest in a project directly or through a regional center. Let’s take a closer look to help you understand which might be right for you.
Direct Investment
With direct investment, you put your money into your own business (or an existing business looking to expand) and actively manage it. The minimum investment amount is $1.05 Million for projects outside of targeted employment areas (TEA), or $800,000 for projects in TEAs. TEAs are areas with high unemployment rates or rural areas, and investing in these areas can reduce the minimum investment amount. Your investment must create and preserve at least ten full-time jobs for U.S. workers.
Regional Center
Regional center investment is more ‘hands-off.’ You invest your money in a USCIS-approved project run by a regional center. The investment amounts are the same as direct investments:
- $1.05 Million for Non-TEA projects
- $800,000 for TEA projects.
Your investment will have the same minimum number of created and preserved jobs. However, the advantage of working with a regional center is that they can also count indirect and induced jobs. Indirect jobs are those created in businesses that supply goods or services to the EB-5 project, while induced jobs are those created in the community as a result of the project’s employees spending their wages.
This makes it easier to meet and exceed the minimum job requirement. Despite their slight difference, direct and regional center investments must be “at risk.” Which means there’s no guarantee you’ll get your money back. You also need to keep your investments in place during your conditional permanent residency period, which usually lasts about two years. During this period, you must maintain your investment and ensure that the job creation requirements are met.
EB 5 Direct Investment vs Regional Center
Here’s a side-by-side comparison to help you understand which option might suit you better.
| Direct Investment | Regional Center | |
| Job Creation | Limited to counting direct jobs | Can count direct, indirect, and induced jobs |
| Risk Level | Higher risk | Generally low risk |
| Control | Partial to complete control over business | Limited control, passive investment |
| Time Commitment | High | Low, minimal involvement |
| Business Experience | It may be more complex | Often smoother due to pre-approval |
| USCIS Approval Process | It may be more complex | Often smoother due to pre-approval |
| Potential ROI | Higher, but more variable | Often more modest but more stable |
How Investor Preferences Shape Investment Decisions
Your preference and unique situation will help you choose between direct investments and regional centers. Ask yourself these questions to help you decide:
Question #1 – What is Your Primary Goal?
Think about why you’re considering the EB-5 program. Are you mainly after a green card? Or do you want to build a successful business in the U.S. too? Some investors see EB-5 as a straightforward path to residency and a promising opportunity for business growth in the U.S.
Others view it as a chance to grow their business in America. If your main goal is to get a green card and you have no interest in running a business, a regional center might be your best bet. But if you’ve been dreaming of running a business in the U.S., direct investment could be perfect for you.
Question #2 – How Much Time Can You Dedicate to the Investment?
Are you willing and able to manage a business full-time? Or do you prefer a more passive role? With direct investments, you’re the boss. You’ll be making decisions, hiring staff, and overseeing operations. Meaning it is time-intensive. But it can be gratifying if you’re passionate about business.
Regional centers are more hands-off. Expert project managers will oversee the project. So, you’re more of a passive investor. This can be ideal if you have other commitments or simply prefer not to be involved in the day-to-day operations.
Question #3 – What is Your Business Experience?
Have you started companies before? Are you familiar with U.S. business regulations? If so, you can use your skills to build and grow a U.S. business if you go on the direct investment route. To run a successful business in America, you must understand U.S. business laws and taxes.
If you have less business experience, regional centers are the safest bet. They have teams specifically trained to handle complex parts of running a business, providing you with the support and expertise you need to succeed in the U.S. market.
Question #4 – What is Your Risk Tolerance?
Every investment comes with risks. However, direct investments might be riskier than regional center investments because you’re starting or running a business in a new country. That’s no small feat. But with higher risks come more significant returns.
Regional centers are usually more predictable. The projects are vetted, and risks are spread out among multiple investors. But this often leads to more modest returns. If you’re comfortable taking more risks, direct investments might be for you. However, a regional center could be better if you prefer a more stable journey.
Question #5 – How Important is Control Over Your Investment to You?
With direct investment, you can shape the company according to your vision. But it also means more responsibility. The success or failure of the business rests mainly on your shoulders.
It’s different with regional centers. You invest your money, but professionals manage the project. So you won’t have much say in day-to-day operations. For some, this is a relief. For others, it might feel uncomfortable.
Direct investment could be perfect if you want to guide your investment hands-on. But if you’re happy to leave the management to others and focus on the end goal of your green card, a regional center might suit you better.
Evaluating Project Selection for Your EB-5 Investment
Whether you invest directly or through a regional center, your project should meet the EB5 program’s requirements. Here are five factors you should consider when assessing a potential EB5 project before you invest in it.
1. Job Creation Potential
Job creation is the heart of the EB-5 program. This doesn’t change whether you invest directly or through a regional center. Your investment must create at least ten full-time jobs for U.S. workers.
For direct investments, consider your business plan carefully. Can you hire and maintain ten full-time employees? Consider the local job market and your business needs.
Regional centers have an advantage because they can count indirect and induced jobs. But don’t just take their word for it. Ask to see their job creation model. Is it sound? Has USCIS approved it in the past? A strong job creation plan is a must for your EB-5 approval.
2. Business Plan Viability
A solid business plan is essential for both USCIS approval and your ROI. Look for (or create) a plan that shows a deep understanding of the industry and local market. Identify potential challenges and explain how to overcome them. The USCIS will scrutinize this plan closely. It needs to be comprehensive, convincing, and realistic.
3. Investment Security
Ensure the total required investment is clearly stated. Is it $800,000 for a TEA or $1.05 million for other areas? Also, the EB-5 program requires your investment to be “at risk.” This means there can only be guarantees you’ll get your money back. But “at risk” doesn’t mean “reckless.” Look for projects with extensive financial backing and a clear plan for using investor funds.
Check if regional centers use escrow accounts. For direct investments, consider how you’ll secure your business assets. A properly structured investment protects your financial interests and visa eligibility.
4. Exit Strategy and Return on Investment
Ask yourself, “Is there a clear, realistic plan for investment return?” or “What’s the projected timeline and method for recouping your investment?”
If you’re directly managing your business, this might involve selling it or bringing in new investors. If you went to the regional center route, they should have a predetermined exit plan for their projects. Ask about the projected timeline for investment return. Is it five years? Seven years? Longer? Understanding this helps with your long-term planning.
5. Project Timeline and USCIS Compliance
Does the project timeline align with EB-5 program requirements? Are all aspects of the investment structured to meet USCIS regulations? Your EB-5 project timeline needs to align with immigration requirements. Can you realistically launch your business and hire employees quickly enough for direct investments?
If you’re working with a regional center, you should ask for an explicit schedule for project milestones and job creation. This is important because USCIS expects to see your investment creating jobs within a reasonable timeframe.
Discover Prime EB-5 Opportunities with Austin EB5
Direct investments and regional centers each have their unique advantages. If you have experience running a U.S.-based business and prefer more control, you could consider directly investing in your business. But if you want a “more hands-off” approach, with lower risk, predictable outcomes, and an overall more straightforward path to get your green card, then regional centers are the way to go.
At Austin EB5, we specialize in connecting investors like you with EB5-qualified projects. We carefully select projects that have strong potential for job creation. And our expert project managers oversee those projects on your behalf to ensure the business grows while you do whatever you want.
If you want to learn more about your options, schedule a call with our team.
EB 5 Visa Investment Options FAQs
What is the difference between direct and regional center investment for the EB-5 visa?
The main difference lies in the investment method. Direct EB-5 investments involve the investor directly managing a new commercial enterprise and creating jobs. In contrast, regional center investments involve investing through a government-approved regional center that oversees the project and job creation.
Can an EB-5 investor choose between direct and regional center investments?
EB-5 investors can choose between direct and regional center investments based on their investment strategy and comfort level with managing the business operations involved.
