· Business Immigration Law · 5 min read
Regional Center vs Direct EB-5 Investment: Key Differences
Regional center projects let indirect jobs count; a direct EB-5 gives you control but needs ten W-2 jobs. Here is how to weigh the two structures.
The regional center vs direct EB-5 decision comes down to one rule: how jobs are counted. In a direct investment, only the employees on your own enterprise’s payroll count toward the ten-job requirement. In a regional center project, indirect and induced jobs count too, calculated through economic modeling. That single difference explains why most EB-5 investors choose regional centers, and why investors who want to run their own business accept the harder job test of a direct investment. Control, risk, cost, and paperwork all follow from that choice.
How each structure works
In a direct EB-5, you form or buy a new commercial enterprise, invest the capital yourself, take part in managing it, and hire at least ten full-time qualifying employees. You file Form I-526. You own the business, and its success or failure is largely in your hands.
In a regional center EB-5, a regional center designated by USCIS sponsors a project. Investors usually become limited partners in a new commercial enterprise that pools their capital and lends it to, or invests it in, a job-creating entity such as a hotel or housing developer. You file Form I-526E. The regional center program was reauthorized by the EB-5 Reform and Integrity Act of 2022 and, as of this writing, runs through September 30, 2027.
Our EB-5 investor visa page covers how we evaluate either structure before you commit.
Job counting: the decisive difference
In a direct investment, the ten jobs must be direct jobs: W-2 employees of the enterprise or its wholly owned subsidiaries, working at least 35 hours a week. Independent contractors do not count. Neither do you, your family, or employees in nonimmigrant status. For many small businesses, ten full-time W-2 hires is a real stretch, and the evidence is tested again when you file to remove conditions.
In a regional center project, jobs can be counted indirectly. An economist uses an accepted input-output model to estimate the jobs created by the project’s spending, including jobs at suppliers and jobs supported by workers spending their wages locally. A large construction project with many investors can show enough modeled jobs to cover every investor, even if few people end up on the project’s own payroll.
That flexibility is the reason regional centers dominate EB-5 investment. It also means your green card depends on the economist’s report and the project spending what it promised to spend.
Control and involvement
A direct investment suits operators. You decide how the money is spent, who is hired, and how the business grows. The tradeoff is that you carry the burden of meeting the job requirement through your own hiring.
A regional center investment suits passive investors. As a limited partner with ordinary partnership rights, you meet the EB-5 management requirement through policy formation, without working in the business. You can live anywhere in the United States and work in any job once you have your green card. You also give up control over the project’s decisions.
Risk and return of capital
Both structures require your capital to be at risk. No legitimate EB-5 offering can guarantee a return or promise your money back on a fixed schedule.
The risks differ in kind. In a direct investment, the risk is that your business underperforms and you cannot create or sustain the jobs. In a regional center project, the risks are developer risk, construction delays, a project that does not raise its full capital, and a loan that is repaid late or not at all. The 2022 law added compliance, reporting, and audit obligations for regional centers, but it does not remove investment risk. Read the offering documents with an independent business adviser as well as an immigration lawyer.
Return of capital also differs. Regional center projects typically return capital when the underlying loan is repaid, often years after the investment. In a direct investment, you own the business, so the capital comes back through profits or a sale.
Regional center or direct EB-5: which fits you
A direct EB-5 tends to fit if you:
- want to run a U.S. business yourself
- have a business model that genuinely needs ten or more full-time employees
- can document the investment and the hiring through your own records
- accept that job creation is your responsibility
A regional center fits if you want a passive investment, prefer that job creation be modeled by professionals, and are willing to do serious due diligence on a developer you will not control.
Some E-2 investors whose businesses have grown explore converting to a direct EB-5. That can work, but the capital and jobs from the E-2 years need careful analysis, since not everything may count. Our E-2 and EB-5 comparison and our E-2 treaty investor visa page cover that path. For the full checklist of what either structure must show, see our post on EB-5 green card requirements.
If you are choosing between a regional center project and a direct EB-5 investment, a consultation with Capitol Law Partners can test each option against your goals and your funds. Schedule a consultation.
This article is for informational purposes only and does not constitute legal advice. No attorney-client relationship is formed by this communication.
Attorney Cagatay Ersoy. Practical strategy for founders, investors, and growing companies.
Need help with this topic? See our EB-5 regional center and direct investment page or schedule a consultation.
