Which of the following is a key difference between direct and regional center EB-5 investments?
Select one answer.
Understanding the EB-5 job creation requirement
At the core of the EB-5 Immigrant Investor Program is a simple formula: investment + jobs = green card. To qualify, you must invest at least $800,000 in a targeted employment area (TEA) or $1,050,000 elsewhere, and your investment must create at least 10 permanent full-time jobs for qualifying U.S. workers (USCIS).
But how you structure that investment determines which jobs count and how much control you retain. The two main paths are direct investment and regional center investment. Each has distinct rules for job creation, and choosing the wrong structure can put your green card at risk.
Direct EB-5 investment: you own the business
In a direct EB-5 investment, you invest capital into your own new commercial enterprise — a restaurant, a manufacturing company, a franchise, or any lawful for-profit business. You must be actively involved in the day-to-day management or policy formation of the enterprise (Murthy Law Firm).
Job creation rules for direct investments
Only direct jobs count. These are actual W-2 employees who work directly for your business. You cannot count independent contractors or estimated positions. Each position must be full-time (at least 35 hours per week) and held by a U.S. citizen, lawful permanent resident, or other qualifying worker.
Example: If you open a hotel, only the front-desk clerks, housekeepers, and managers on your payroll count. The construction workers who built the hotel do not.
When direct investment makes sense
- You want full control over business operations.
- You have industry experience and are prepared to run a company.
- You can realistically hire 10+ full-time employees within two years.
Regional center EB-5 investment: passive ownership
A regional center is a USCIS-approved entity that pools investor capital into large projects, such as real estate developments or infrastructure. You invest passively — you do not manage the business. Instead, the regional center handles operations and job creation.
Job creation rules for regional centers
Regional centers can count direct, indirect, and induced jobs. Indirect jobs are those created by suppliers and service providers that support the project. Induced jobs result from increased spending by employees. This flexibility makes it easier to meet the 10-job requirement, especially for large-scale projects.
Example: A regional center funds a new hotel. It can count not only the hotel staff (direct jobs) but also jobs at local laundry services, food suppliers, and even the increased hiring at nearby grocery stores due to employee spending.
When regional center investment makes sense
- You prefer a passive role.
- You want to leverage indirect job counting to reduce risk.
- You are investing in a large project with established economic modeling.
Key structural decisions for job creation
1. Choose your investment vehicle
Decide whether to invest directly or through a regional center. This choice determines which jobs count and your level of involvement.
2. Verify the job creation methodology
For regional centers, review the economic model (e.g., IMPLAN or RIMS II) used to estimate indirect and induced jobs. Ensure the model is credible and accepted by USCIS.
3. Plan for job timing
Jobs must be created within two years of the investor's admission as a conditional permanent resident (or within a reasonable time thereafter). For direct investments, you need a hiring timeline. For regional centers, the project's construction and operational phases should align with this window.
4. Document everything
Maintain payroll records, tax filings, and employment verification for all counted jobs. For regional centers, request regular job creation reports.
Common pitfalls to avoid
- Counting non-qualifying workers: Family members of the investor and non-immigrant visa holders (e.g., H-1B, L-1) generally do not count.
- Relying on part-time positions: Two part-time jobs do not equal one full-time job.
- Ignoring the at-risk requirement: Your capital must be truly at risk — no guarantees of return.
Quiz: test your knowledge
Which of the following is a key difference between direct and regional center EB-5 investments?
- Direct investments can count indirect jobs; regional centers cannot.
- Regional centers can count indirect and induced jobs; direct investments can only count direct jobs.
- Both structures count the same types of jobs.
How the Immigration Attorney Can Help
Structuring your EB-5 investment for job creation requires careful planning. An experienced immigration attorney can help you choose between direct and regional center paths, review job creation methodologies, and ensure your documentation meets USCIS standards. For personalized guidance, visit Kyle D. Mitchell, Esq. — EB-5 Investor Visa Attorney | NYC to schedule a consultation.