Standalone investment
Direct EB-5 places the investor closer to the operating business.
It can offer greater involvement and control, but it also places direct responsibility on the enterprise for qualifying jobs, operations, documentation, and long-term execution.
What it is
An investment outside the regional center structure.
In direct EB-5, the investor files Form I-526 and invests in a new commercial enterprise that must directly create at least ten qualifying full-time positions for U.S. workers.
The investor may establish a business, purchase and restructure an existing business, or invest in another qualifying enterprise. The arrangement must still satisfy at-risk capital, lawful-source, new-commercial-enterprise, job-creation, management, and sustainment requirements.
What changes
Direct jobs carry the case.
EMPLOYMENT
Ten qualifying employees
The business must generally create full-time positions directly on its payroll. Independent contractors and nonqualifying workers do not count simply because they support the enterprise.
BUSINESS PLAN
Detailed and credible execution
The plan should connect market, operations, budget, staffing, timing, licenses, premises, revenue assumptions, and management to a credible job-creation path.
MANAGEMENT
Active policy role
The investor must engage in management through day-to-day managerial control or policy formulation consistent with the entity and governing documents.
CAPITAL
At risk and traceable
Capital must be lawfully sourced, placed at risk for the purpose of generating a return, and deployed into the enterprise in a way supported by records.
RECORDS
Evidence through Form I-829
Payroll, tax filings, I-9 records, bank statements, invoices, leases, licenses, and operational records may be needed to demonstrate investment and job creation.
TIMING
Business and immigration clocks
Hiring, capital deployment, visa availability, petition processing, conditional residence, and removal of conditions may operate on different timelines.
Operational challenges
Greater control can mean greater exposure.
- The enterprise must create and sustain qualifying direct jobs.
- Ordinary startup and operating risks can affect immigration evidence.
- Delays in hiring, licensing, construction, or revenue may alter the plan.
- Turnover and part-time staffing require careful job-count analysis.
- Related-party payments and use of funds must be documented.
- The investor must preserve business and employment records for later filings.
- Immigration planning must be coordinated with corporate, tax, employment, and securities advice.
Before choosing direct EB-5
Questions for the proposed business.
- What enterprise will receive the capital, and when was it formed?
- Where will the business operate, and does the location qualify for a reduced amount?
- Who will manage operations while the investor completes immigration processing?
- Which positions will be full-time, permanent, and qualifying?
- When will hiring occur, and what capital supports payroll?
- What licenses, leases, contracts, or permits remain outstanding?
- How will records be preserved for Form I-829?
Test the business plan against the immigration rules.
HarrisLaw can help structure the direct EB-5 immigration strategy and evidentiary record.