Direct investment in the EB-5 Immigrant Investor Program means the investor puts money directly into a new commercial enterprise they control or own and must create at least 10 direct, full-time U.S. jobs through that enterprise to qualify for a green card.
What Is Direct Investment in EB-5?
Direct investment refers to the EB-5 pathway, in which the investor’s capital is invested directly in a business that will create jobs. In this model:
- The investor typically owns the business and actively participates in it.
- The business itself must create at least 10 full-time jobs for U.S. workers.
- Only direct jobs, that is, actual employees on the business payroll, count toward the EB-5 job requirement. Indirect or induced jobs do not count.
This is also called the stand-alone EB-5 investment, because it is not tied to a regional center.
How to Apply for Direct EB-5 Investment
- File Form I-526 as a standalone investor to petition USCIS for immigrant status under section 203(b)(5) of the Immigration and Nationality Act (INA).
- Review USCIS filing tips before submitting to help avoid delays or rejection.
- Pay the required filing fee, unless you qualify for a fee exemption.
- Download and use the latest version of Form I-526 directly from the USCIS website before filing.
Expect two receipt notices after filing:
- A lockbox receipt notice confirming USCIS received your form and processed the payment.
- A formal receipt notice with your assigned USCIS receipt number for case tracking.
How Job Creation Works in Direct Investment
To meet the job creation requirement:
- Jobs must be full-time, that is, a minimum of 35 hours per week.
- They must be W-2 positions directly hired by the business funded by the EB-5 investment.
- Jobs must exist within 2 years of the investor’s admission to the U.S. as a conditional permanent resident.
Unlike regional center investments, indirect jobs, such as jobs in related businesses or through economic ripple effects, cannot be counted toward the 10-job requirement for direct investment.
Scenarios for Direct Investment
Investors frequently use direct investment when:
- They want control over the business they’re investing in.
- They have entrepreneurial experience.
- They are willing to lead day-to-day operations or to take an active role in management.
- They can document direct job creation through payroll records
Direct investment examples include:
- Starting a new business, such as a restaurant, retail store, or manufacturing company
- Purchasing and expanding an existing business
- Buying into an existing operational business
The investor’s involvement can range from hands-on management to high-level oversight, depending on the business’s structure.
Requirements for Direct EB-5 Investment
To qualify as a direct investment under the EB-5 rules, you must:
- Invest qualifying capital into a new commercial enterprise.
- Ensure the enterprise will create at least 10 direct, full-time jobs for U.S. workers.
- Provide evidence of job creation through payroll or tax documentation.
- Ensure the capital remains “at risk” throughout the conditional residency period.
Direct investment involves more active business and compliance responsibilities than a regional center investment because the focus is on generating jobs within your own enterprise.
Key Takeaways
- Direct investment means investing directly into your own business or enterprise.
- You must create 10 direct jobs that are W-2 positions.
- Indirect or induced job counting is not allowed in direct EB-5 investment.
- Investors often have full control and responsibility for the business.
Frequently Asked Questions
1. When is direct investment used?
Direct investment for the EB-5 program is when the investor wants to run or own a business that creates the required jobs and meets EB-5 rules without a regional center.
2. Who is direct investment for?
EB-5 Direct Investment is for entrepreneurs and business owners who are prepared to take an active role in their EB-5 enterprise.
3. What happens if jobs aren’t created?
USCIS may deny or revoke the investor’s conditional residency if the job creation requirement isn’t met.
4. What is the alternative to direct investment?
An alternative option is to invest through a regional center, which allows indirect job counting.
