Direct EB-5 Explained
There are two EB-5 categories, direct and indirect. Direct EB-5 launched in 1990 with the establishment of the EB-5 program. A few years later, the Regional Center Pilot program was created as a means to streamline the business side of the EB-5 process. Over 30 years later, each category remains attractive to investors, with those preferring a hands-on approach opting for direct EB-5 and those wanting to leave the business management to Regional Centers going for indirect EB-5.
New EB-5 investors looking to go direct will need to find several professionals to assist them with their cases. First, they will need an attorney to assist with the I-526 filing, along with other applicable filings such as I-485, I-765, and I-131 if the investor is already within the United States. Next, they will need to hire a business plan writer, economist, and CPA who assist with the business development side along with potential partners also looking to support the project.
Another key difference between direct and indirect EB-5, comes down to job creation. While indirect EB-5 allows one to obtain an economist’s report to present as evidence of job creation (EB-5 Requires the creation of 10 jobs), for direct you must actually hire and show proof that 10 real jobs were created. Working on a smaller scale compared to that of Regional Center projects can make the process a bit more complicated and involved. Nevertheless, direct EB-5 remains a popular option for investors who possess an entrepreneurial spirit.
From a filing attorney’s perspective, I see the main practical differences come down to USCIS processing times along with the gathering and presentation of evidence proving Job Creation and the meeting of the two year at-risk requirement. It takes much longer for USCIS to process an I-526 than an I-526e, USCIS states the current wait times as of February 2026 are 31.5 months for direct investors and 20 months for Regional Center investors. (Subject to change). It is important to note that either timeline may potentially be accelerated by filing a writ of mandamus to compel USCIS to increase their processing speed.
With direct EB-5, Instead of filing an I-526e we file an I-526. The difference in these forms is largely found in parts 4 and 5 where additional questions exist regarding background information on the New Commercial Enterprise, including but not limited to; company structure, formation date, entity aliases, subsidiary information, ownership breakdown, proof of TEA compliance, and NCE employment status.
As the EB-5 RIA Grandfathering deadline approaches, more investors are considering direct EB-5 as a viable alternative due to concerns of a lapse as the Regional Center program gets renewed.
If you have any questions regarding direct EB-5 or anything related to EB-5 please contact us for a consultation.