Understanding EB-5 Direct Investment (Standalone Investor)

EB-5 direct investment is a path within the EB-5 Immigrant Investor Program in which a standalone investor files Form I-526 with U.S. Citizenship and Immigration Services based on an investment into a new commercial enterprise that directly creates qualifying jobs. The investor commits capital to a real operating business, and that business must create at least 10 full-time positions for eligible workers.

Those jobs must be supported by a detailed, Matter of Ho compliant business plan that explains how the enterprise will launch, grow, and hire. Investment minimums depend on whether the project is located in a targeted employment area or a non-TEA location, so investors need to confirm current thresholds on official U.S. Citizenship and Immigration Services resources before committing capital.

Prospective investors often want to know whether a direct structure, a regional center investment, or an E-2 treaty investor strategy better fits their goals. A practical next step is to compare these options with an experienced EB-5 attorney who can weigh risk, timeline, and level of control. Pollak PLLC assists EB-5 investors in Fort Lauderdale, Broward County, Miami-Dade County, and global clients through consular processing and related investor immigration strategies.

What Is EB-5 Direct Investment for a Standalone Investor?

In a direct EB-5 case, a single investor or a small group invests directly into a new commercial enterprise that operates a real business and directly employs workers. The investor files Form I-526 based on the enterprise’s projected ability to create at least 10 full-time jobs for qualifying employees. Those jobs must be supported by a credible business plan, realistic financial projections, and a clear hiring timeline.

Defining features of direct EB-5 include:

• Direct investment into a new commercial enterprise that runs an active business
• A standalone investor filing Form I-526 based on that specific enterprise
• A requirement to create 10 or more direct, full-time W-2 jobs for qualifying workers
• Job creation proven through the enterprise’s own payroll and operations

Do I Need to Manage the Business in a Direct EB-5 Case?

A direct EB-5 investor is expected to have a role in management or policy making, but this does not always mean handling daily operations. Many investors meet this requirement by serving as a manager, officer, or member of a managing entity with authority over key decisions. Others participate through a documented policy making role while hiring experienced staff to oversee day-to-day tasks.

The central objective is to show a real, documented connection between the investor and the direction of the business. Corporate documents, resolutions, and role descriptions should make that relationship clear.

Direct EB-5 vs Regional Center EB-5: What Are the Key Differences?

Form I-526 is used by standalone investors pursuing direct EB-5 investments, where the focus is on a specific new commercial enterprise that directly creates jobs. Form I-526E is used by investors in regional center projects, where multiple investors pool capital into a sponsored project and may count indirect and induced jobs through an economic model.

Both routes fall under the EB-5 framework, but they involve different structures, job counting methods, and documentation strategies. The table below highlights core differences:

Is Direct EB-5 Better than a Regional Center Investment for My Situation?

Whether direct EB-5 or a regional center structure is a better fit depends on the investor’s goals, risk tolerance, and desired level of involvement. Direct EB-5 can appeal to investors who want more control, are comfortable with a single business, and are prepared to build and document direct W-2 job creation. Regional center investments often appeal to investors who prefer a more passive role and want the flexibility of counting indirect and induced jobs, while accepting reliance on project sponsors and complex structures.

Examples of how situations may differ include:

• An investor with a strong business concept and a trusted local team may lean toward direct EB-5 to build enterprise value and guide operations.
• An investor who prefers to diversify risk across a larger project may consider a regional center with a proven track record and established partners.
• An investor from a treaty country who wants a lower initial commitment and renewable status might weigh E-2 alongside EB-5 options.
• An investor who is especially timeline focused may compare visa availability, project readiness, and filing stages for each route before deciding.

Pollak PLLC helps investors evaluate these scenarios in detail so that the choice reflects both immigration objectives and business realities.

Core Requirements for EB-5 Direct Investment

EB-5 direct investment involves several core requirements that must be met together. These include investing at or above the applicable statutory minimum, placing capital at risk for the purpose of generating a return, proving a lawful source and path of funds, and creating at least 10 qualifying full-time jobs.

EB-5 investment thresholds depend on whether the project qualifies as being in a targeted employment area or a non-TEA location. TEA projects benefit from a lower statutory minimum, while non-TEA investments require a higher contribution. These amounts are adjusted from time to time, so investors should confirm the current minimums on the latest U.S. Citizenship and Immigration Services resources before funding a project. An attorney can help confirm whether a specific location and project qualify as a TEA and how that status affects the required investment.

What Counts as “At-Risk” Capital for an EB-5 Direct Investment?

EB-5 capital must be at risk for the purpose of generating a return, which means there must be a real chance of gain or loss in the ordinary course of business. Structures that guarantee repayment, provide fixed returns without business risk, or allow early redemption rights can undermine the at-risk requirement.

In a direct EB-5 case, the investor’s funds should be fully committed to the new commercial enterprise’s operations or development, with documentation showing how the capital is deployed. Clear funding flows, consistent corporate records, and commercially reasonable terms help reduce the chance of a request for evidence concerning the at-risk element.

What Lawful Source-of-Funds Evidence Is Needed for Direct EB-5?

Lawful source-of-funds documentation is a critical pillar of any EB-5 case, and direct investments are no exception. The investor must show that the capital came from a lawful source and that it was transferred through a transparent path of funds into the new commercial enterprise.

Typical document categories include:

• Salary, bonus, and employment income, supported by pay records and tax returns
• Business profits, distributions, and retained earnings, supported by corporate financials and ownership documents
• Proceeds from the sale of assets such as real estate, securities, or a business, supported by purchase and sale agreements and closing records
• Gifts from family members, supported by donor source-of-funds records and formal gift documentation
• Secured loans, supported by loan agreements, collateral records, and evidence that loan proceeds are lawfully sourced
• Inheritance or other estate distributions, supported by probate records and related legal documents

An organized documentation strategy reduces the risk of delays, requests for evidence, and misunderstandings about how capital moved into the EB-5 project.

Job Creation in Direct EB-5: How to Prove the 10 Full-Time Jobs

In a direct EB-5 case, the new commercial enterprise must create at least 10 qualifying full-time jobs for U.S. workers per investor. Full-time generally means at least 35 hours per week in a permanent, ongoing position rather than a temporary or seasonal role. These jobs must be clearly tied to the enterprise that received the EB-5 investment and documented with payroll and employment records.

Key criteria for qualifying jobs include:

• Full-time positions at 35 or more hours per week for each employee
• Permanent roles rather than temporary, seasonal, or intermittent positions
• Employees who are U.S. citizens, permanent residents, or otherwise authorized to work in qualifying categories
• Jobs paid through W-2 payroll, with withholding and employment taxes reported under the enterprise’s employer identification number

Can Contractors or Part-Time Workers Count toward EB-5 Job Creation?

Independent contractors and part-time workers generally do not qualify as direct jobs for EB-5 purposes. Reliance on contractors instead of W-2 employees can create a shortfall when the time comes to prove that 10 full-time positions exist. Part-time workers whose hours total a full-time equivalent usually do not satisfy the requirement unless they occupy full-time, permanent positions as individual employees.

Careful advance planning around staffing, human resources policies, and job descriptions helps ensure that the enterprise hires and retains workers in a way that aligns with EB-5 requirements.

How Does Job Creation Evidence Affect I-829 Removal of Conditions?

At the I-829 stage, the investor must show that the jobs promised in the I-526 filing were actually created or will be created within a reasonable period. For direct EB-5 investors, this proof comes from real world business records, and incomplete or inconsistent documentation can jeopardize removal of conditions.

Core types of evidence often include:

• Payroll registers and wage reports covering the conditional residence period
• Forms W-2 and related tax records for qualifying employees
• Forms I-9 and supporting identity documents that confirm work authorization
• Organizational charts and human resources records that show roles, start dates, and ongoing employment

Building job creation tracking into business operations from the start helps make the I-829 process more predictable and reduces the stress of reconstructing records later.

EB-5 Direct Investment Business Plan Requirements

A direct EB-5 business plan must be detailed enough for U.S. Citizenship and Immigration Services to assess whether the enterprise can realistically create 10 full-time jobs and sustain operations. Matter of Ho sets the standard for what the agency expects in a credible plan.

To meet this standard, the plan should include:

• A clear business description explaining the products or services and how the enterprise will operate
• Market analysis with data on competitors, target customers, and demand in the project’s location
• Marketing strategy outlining how the enterprise will attract and retain clients or customers
• Operations plan describing facilities, suppliers, technology, and key processes
• Staffing plan with projected positions, hiring timeline, and wages that tie directly to EB-5 job creation requirements
• Detailed use-of-funds section showing how EB-5 capital and other funds will be deployed
• Financial projections, including revenue, expense, and cash flow forecasts, that support job and growth expectations
• A realistic implementation timeline that connects funding, build-out, hiring, and revenue milestones

What Is Matter of Ho, and Why Does It Matter for Direct EB-5 Investors?

Matter of Ho is a precedent decision that describes what U.S. Citizenship and Immigration Services expects from an immigrant investor business plan. The decision explains that plans must be credible, detailed, and internally consistent rather than generic or speculative. For direct EB-5 investors, this means the business plan should match the actual business model, projected staffing, and financial assumptions that will drive job creation.

A weak or generic plan can lead to requests for evidence, notices of intent to deny, or denials even when the investment amount is otherwise sufficient. Pollak PLLC works with investors and professional business plan writers to align the legal strategy with the operational plan so that the narrative, numbers, and hiring assumptions support a strong EB-5 filing.

Direct EB-5 Processing Time and Timeline from I-526 to Green Card

Direct EB-5 processing time varies based on U.S. Citizenship and Immigration Services workloads, country of chargeability, and visa availability. Investors should review current estimates in the U.S. Citizenship and Immigration Services processing times tools and check the Visa Bulletin to understand whether their category or country faces backlogs.

After I-526 approval, the timing of consular processing or adjustment of status can differ depending on whether the investor is abroad or already in the United States in a qualifying status. Any timeline plan should build in flexibility and avoid strict assumptions about how quickly each stage will move.

What Causes Delays in I-526 Adjudication for Direct EB-5?

Delays in I-526 adjudication can stem from several factors, some within the investor’s control and others tied to agency processes. Common delay drivers include:

• Complex or poorly organized source-of-funds documentation that requires extensive review
• Incomplete or inconsistent business plans or projections that raise credibility questions
• Requests for evidence or notices of intent to deny that require responses and further review
• Changes to EB-5 regulations or agency policy that temporarily slow processing
• Country specific visa retrogression that limits when visas are available even after approval
• Administrative backlogs at U.S. Citizenship and Immigration Services or consular posts

Building a clear, well-documented file and planning for potential follow-up questions can help reduce avoidable delays.

What Are the Main Steps in the EB-5 Direct Investment Timeline?

The EB-5 direct investment journey generally follows a series of stages that build on one another:

• Preliminary planning, due diligence, and consultation with an EB-5 attorney and other advisers
• Structuring the new commercial enterprise and preparing a Matter of Ho compliant business plan
• Funding the investment and documenting the path of funds into the enterprise
• Filing Form I-526 with supporting evidence and waiting for adjudication
• Pursuing an immigrant visa through consular processing or filing Form I-485 for adjustment of status where eligible
• Receiving conditional permanent residence and operating the business while creating jobs
• Filing Form I-829 to remove conditions and demonstrating that investment and job creation requirements were met

Pollak PLLC helps investors plan for each step, align documentation with long-term goals, and adjust strategy as processing conditions evolve.

Frequently Asked Questions About EB-5 Direct Investment

What Documents Should I Prepare before Starting a Direct EB-5 Filing?

Investors who prepare key documents early often find the EB-5 process more manageable. Important document categories include:

• Identity and civil documents such as passports, birth certificates, and marriage certificates
• Financial and tax records that support lawful source-of-funds claims, including bank statements and tax returns
• Corporate documents for the new commercial enterprise and any related entities, such as operating agreements and incorporation records
• Contracts and records related to the source of capital, including sales agreements, loan documents, and gift deeds
• Early drafts of the business plan and projections that reflect the intended investment and job creation strategy

Collecting these materials in advance allows potential gaps to be identified and addressed before filing.

Can I Include My Spouse and Children in a Direct EB-5 Case?

In most cases, an EB-5 principal investor can include a spouse and unmarried children under 21 as derivative beneficiaries. These family members receive conditional permanent residence when the principal’s case is approved and remain tied to the outcome of the investor’s petition. Because age-out issues can arise when children are close to 21, investors should discuss Child Status Protection Act considerations and timing with an attorney before filing.

What Happens if My Direct EB-5 Business Does Not Create 10 Jobs in Time?

Failure to create 10 qualifying full-time jobs can cause serious challenges at the I-829 stage. U.S. Citizenship and Immigration Services may deny removal of conditions if the enterprise does not show that jobs were created or will be created within a reasonable period. In some situations, careful planning and documentation can support arguments that job creation is still on track, but there is no guarantee that these arguments will succeed.

Addressing job creation risk early, including conservative hiring and revenue projections, is essential.

What Are the Biggest Risks in Direct EB-5, and How Can I Reduce Them?

Direct EB-5 involves both business and immigration risk, and investors should approach it with realistic expectations. Major risks and mitigation steps include:

• Business risk, which can be reduced through thorough market research, conservative projections, and strong management teams
• Documentation risk, which can be reduced by working with an experienced EB-5 attorney to build a coherent, well-organized record
• Job creation risk, which can be reduced by designing a staffing plan that targets more than the minimum number of positions and tracking hiring carefully
• Timing and retrogression risk, which can be managed by monitoring visa availability and structuring personal plans to accommodate potential delays
• Regulatory and policy risk, which can be addressed by staying in close contact with immigration counsel as rules and interpretations evolve

Thoughtful planning and ongoing consultation with qualified advisers can significantly improve the investor’s ability to navigate these risks.

Talk with a Pollak PLLC EB-5 Attorney About Direct Investment and Alternatives

EB-5 direct investment presents an opportunity for investors who want to build and operate a United States business while seeking permanent residence, but it also demands careful planning around capital, business execution, job creation, and documentation. Choosing between direct EB-5, regional center EB-5, and options such as the E-2 treaty investor visa involves weighing control, risk, and timing in light of each family’s long-term goals. An EB-5 attorney at Pollak PLLC can help align the immigration strategy with business realities, so that the business plan, source-of-funds documentation, and job creation model support a coherent case.

Pollak PLLC works with investors in Fort Lauderdale, across South Florida, and around the world to evaluate EB-5 requirements and processes, explore treaty investor alternatives, and design strategies tailored to each investor’s circumstances. Before committing capital or selecting a project, investors are encouraged to schedule a consultation with Pollak PLLC to gain a clear understanding of their options and next steps.