EB-5 Regional Center vs. Direct Investment
EB-5 investors generally choose between two broad structures, and the choice can meaningfully affect involvement, risk, and job-creation counting.
Regional center investment
A regional center is generally a USCIS-designated entity that sponsors investment projects and pools capital from multiple EB-5 investors. This structure is generally more passive for the investor — professional management typically runs the underlying project — and often allows both direct and indirect job creation to count toward the requirement.
Direct investment
A direct EB-5 investment generally means the investor personally owns and, to some degree, manages a new commercial enterprise, with job creation generally counted only from direct employees of that enterprise. This path is generally more hands-on and can suit investors who want operational control.
General tradeoffs
Regional center investments are generally more passive but depend heavily on the quality and track record of the sponsoring entity and project. Direct investment generally offers more control but requires more active involvement and, typically, a higher bar for job creation to be counted.
Due diligence either way
Regardless of structure, reviewing project economics, the sponsor's or regional center's track record, and how job creation will be documented is generally essential before committing capital. See our related guide on evaluating a regional center before investing.