EB-5 Direct (Stand-Alone EB-5) Investment Guide

What is Direct (Stand-Alone) EB-5?

Direct, or Stand-Alone, EB-5 is the non regional center version of the EB-5 Immigrant Investor Program. Established under INA §203(b)(5), EB-5 allocates immigrant visas to investors who:

• Invest the required minimum capital in a New Commercial Enterprise (NCE)
• Can show their investment created jobs for at least 10 U.S. workers

Instead of investing through a USCIS designated regional center, the investor places capital directly into a qualifying US business and must demonstrate that the enterprise itself creates the required jobs, as governed by 8 CFR §204.6.

Who Direct (Stand-Alone) EB-5 is Best Suited For?

Direct (Stand-Alone) EB-5 is most appropriate for investors who:

- Want to start and operate their own US business
- Have previous entrepreneurial or management experience
- Prefer direct control over business operations and hiring
- Are comfortable with the higher operational and evidentiary burden
- Have a viable business plan that can realistically create 10+ W2 jobs
- The managerial role requirement is outlined in 8 CFR §204.6(j).

More on Regional Center EB-5

Jobs that Count for Direct (Stand-Alone) EB-5

These 10 jobs must be:

- Direct, that is direct employees of the business
- Permanent
- Full time
- On the payroll of the enterprise receiving the EB-5 investment, i.e. “W-2” employees of the enterprise
- The jobs must be necessary and needed for the operation of the business

EB-5 Direct is most often used by:

- Founders
- Owner operators
- Investors in family businesses
- Investors in businesses hoping for higher returns than are typically seen in a structured Regional Center EB-5
- Investors who want direct control over their business and a transparent link between capital deployment and job creation.

The Direct (Stand-Alone) EB-5 Job Creation Requirement

Direct EB-5 job creation evidence typically includes:

- Payroll and W-2 records
- Proof each job is full-time (35+ hrs/week)
- I-9 compliance documentation
- Business tax filings and wage reports
- Hiring timeline consistent with the Matter of Ho business plan.

The defining feature of EB-5 Direct (Stand-Alone EB-5) is job creation methodology.

USCIS requires that the investment result in the creation of at least ten direct, permanent, full time jobs for qualifying US workers. USCIS Policy Manual, Vol 6, Part G, Chapter 2.

Creating 10 direct jobs is the single largest reason that over 90% of EB-5 cases are filed through Regional Centers.

These jobs must be:

• Direct
• Permanent
• Full time
• On the payroll of the enterprise receiving the EB-5 investment

Jobs that Do Not Count for Direct (Stand-Alone) EB-5

• 1099 contractors
• Employees of third party vendors or staffing firms not on the enterprise payroll
• Indirect or induced jobs
• The investor's own position

Matter of Ho and the EB-5 Business Plan

Overview: Direct EB-5 Business Plans

A USCIS-compliant EB-5 business plan is the single most important part of any Direct (Stand-Alone) EB-5 Petition. U.S. Citizenship and Immigration Services (USCIS) evaluates your business plan under the legal standards established by Matter of Ho, a precedent which sets out what USCIS expects in terms of detail, credibility, and feasibility.

What is a Matter of Ho?

The Matter of Ho is an immigration case where the Administrative Appeals Office laid out criteria needed for a business plan to be compliant for EB-5 purposes. Under the criteria in Matter of Ho, any EB-5 Direct business plan must show:

- A credible and realistic description of the business model

- A supported market and industry analysis

- A detailed job creation timeline showing how at least 10 full-time W-2 jobs will be created for U.S. workers

- Logical financial projections that align with your investment and hiring assumptions

- Evidence that your capital is legitimately at risk and will be deployed in support of the enterprise’s operations and growth

For a full explanation of how to build a strong, Matter of Ho compliant business plan, including practical guidance on structure, narrative, and evidence, see our business plan guide.

Understanding and applying the Matter of Ho standards to your plan is essential for a successful Direct EB-5 strategy. Carefully document every assumption and projection, and ensure that your narrative clearly ties your investment to credible economic outcomes and job creation consistent with EB-5 requirements.

Legal Framework for Direct (Stand-Alone) EB-5

EB-5 Direct (Stand-Alone EB-5) is governed by:

• INA §203(b)(5), which establishes the EB-5 classification
• 8 CFR §204.6, which sets out petition requirements, capital rules, and job creation standards
• USCIS Policy Manual Volume 6, Part G, which provides adjudicatory guidance

Although the Foreign Affairs Manual (FAM) does not create EB-5 eligibility rules, it governs how EB-5 visas are processed at US consulates once a petition is approved.

9 FAM 502.5-6

Who Direct (Stand-Alone) EB-5 is Best Suited For

Direct (Stand-Alone) EB-5 is most appropriate for investors who:

• Want to start and operate their own US business
• Have previous entrepreneurial or management experience
• Prefer direct control over business operations and hiring
• Are comfortable with the higher operational and evidentiary burden
• Have a viable business plan that can realistically create 10+ W2 jobs

The managerial role requirement is outlined in 8 CFR §204.6(j).

Direct EB-5 vs Regional Center EB-5: Comparison

Feature	Direct (Stand-Alone) EB-5	Regional Center EB-5
Legal Basis	INA §203(b)(5); 8 CFR §204.6	INA §203(b)(5); EB-5 Reform and Integrity Act of 2022
USCIS Petition Form	Form I-526	Form I-526E
Job Creation Requirement	10 direct, full-time W2 employees	10 jobs (direct, indirect, or induced)
Management Involvement	Active role in day-to-day operations or policy-making	Passive investment permitted
Job Calculation Methodology	Actual payroll records required	Economic modeling (RIMS II, IMPLAN) accepted
Investment Control & Risk	Full control; higher operational risk	Limited control; risk depends on project structure
Who It's Best Suited For	Entrepreneurs, owner-operators, family businesses	Passive investors seeking lower operational burden

EB-5 Direct (Stand-Alone EB-5) Investment Requirements

To qualify for permanent residence through EB-5 Direct (Stand-Alone EB-5), the investor must:

1. Invest the required amount of capital into a qualifying US commercial enterprise
2. Demonstrate the capital was lawfully sourced
3. Show that the investment created or will create at least ten qualifying jobs

INA §203(b)(5)(A)(ii)

USCIS defines full time employment as a minimum of 35 working hours per week, consistent with 8 CFR §204.6(e).

All EB-5 investments must remain at risk for the purpose of generating a return, as required by regulation and USCIS policy.

Minimum Investment Amount

The required investment amount depends on whether the enterprise is located in a targeted employment area:

• $800,000 USD if located in a rural area or high unemployment area
• $1,050,000 USD if not located in a targeted employment area

USCIS Policy Manual, Vol 6, Part G, Chapter 2

Targeted employment area determinations are fact specific and must be verified before capital is committed.

Form I-526 vs Form I-526E for EB-5 Direct (Stand-Alone EB-5)

Direct EB-5 (Stand-Alone EB-5) cases are filed using Form I-526, not Form I-526E.

Form I-526

Form I-526 is used by investors whose EB-5 investment is not associated with a regional center and relies on direct job creation. This is the standard petition form for EB-5 Direct (Stand-Alone EB-5) cases.

8 CFR §204.6(a)

Form I-526E

Form I-526E is reserved for regional center sponsored investments under the EB-5 Reform and Integrity Act framework and is not generally applicable to standalone EB-5 structures.

For a detailed comparison of filing strategy and evidence requirements, see our I-526 forms guide.

What Type of Projects Qualify for EB-5 Direct?

Any project that requires the requisite amount of investment capital which creates at least ten jobs potentially qualifies for EB-5 Direct. Examples of projects our clients have undertaken include:

• Opening gas stations
• Adding convenience stores to gas stations
• Opening and expanding trucking and transportation businesses
• Opening a chain of hair salons
• Building hotels
• Building factories

Disadvantages of Direct (Stand-Alone) EB-5

While EB-5 Direct (Stand-Alone EB-5) offers control and transparency, it also carries meaningful disadvantages that investors should understand.

Higher Evidentiary Burden

Direct (Stand-Alone) EB-5 cases require documented proof of actual job creation, not economic projections. USCIS officers closely scrutinize payroll records, tax filings, and business operations. USCIS Policy Manual, Vol 6, Part G

Operational Risk

Because the investor controls the enterprise, business failure or delayed hiring directly impacts immigration eligibility. There is no buffer from indirect job modeling as exists in regional center cases.

Approval Rates

Historically, Direct (Stand-Alone) EB-5 petitions have experienced lower approval rates than regional center cases, largely due to:

• Inadequate business plans
• Failure to sustain ten qualifying jobs
• Timing mismatches between hiring and adjudication
• Poor documentation of lawful source of funds

USCIS does not publish separate approval statistics by project type in the regulations, but adjudicatory guidance consistently reflects stricter scrutiny for direct job creation cases under 8 CFR §204.6 and the USCIS Policy Manual.

For this reason, EB-5 Direct (Stand-Alone EB-5) cases require unusually careful planning and coordination between immigration counsel and business advisors.

EB-5 Direct (Stand-Alone EB-5) Process Overview

A compliant EB-5 Direct (Stand-Alone EB-5) case typically follows this sequence:

1. Select or structure the qualifying enterprise
2. Design a hiring plan that supports ten qualifying jobs
3. Confirm targeted employment area status if applicable
4. Align capital deployment with job creation timelines
5. Prepare lawful source of funds documentation
6. File Form I-526
7. Obtain conditional permanent residence
8. File to remove conditions once job creation is proven

INA §216A and 8 CFR §216.6 govern the removal of conditions stage.

Raising Capital Using EB-5 Direct

Although the recent passage of the RIA made it harder to raise capital from foreign investors using Direct (Stand-Alone) EB-5 it is still possible to do so. This is especially the case where smaller numbers of investors are involved.

It also remains possible to combine EB-5 Direct and EB-5 Regional Center approaches in the same project.

At Davies & Associates we place a team of lawyers around every client seeking to raise EB-5 capital. This team involves a senior and experienced EB-5 lawyer together with corporate lawyers, typically a taxation lawyer, real estate lawyers and corporate lawyers. Our firm also has a specialist team which works to prepare EB-5 Direct Business Plans.

Our deep knowledge of international markets and EB-5 investors uniquely positions us to assist business owners seeking to raise capital through EB-5.

Frequently Asked Questions

What is Direct (Stand-Alone) EB-5?

Direct (Stand-Alone) EB-5 is the version of the EB-5 Immigrant Investor Program where the investor places capital directly into a qualifying US business and creates jobs through that enterprise, rather than investing through a USCIS-designated regional center.

How is Direct (Stand-Alone) EB-5 different from Regional Center EB-5?

With Direct (Stand-Alone) EB-5, all required jobs must be direct, permanent, full time W2 positions on the enterprise payroll. Regional Center EB-5 projects may count indirect and induced jobs using economic modeling.

How many jobs are required for Direct (Stand-Alone) EB-5?

The investment must create at least 10 qualifying full time jobs for US workers. Each job must generally involve at least 35 hours per week and be permanent in nature.

What type of jobs count?

Only direct employees of the enterprise count. Independent contractors, consultants, and third-party workers typically do not qualify for Direct (Stand-Alone) EB-5 job creation purposes.

How much investment is required?

The minimum investment is generally:

• $800,000 USD if the business is located in a targeted employment area
• $1,050,000 USD if the business is not located in a targeted employment area

The applicable amount depends on timing and location and should be confirmed before investing.

Which petition form is used for Direct (Stand-Alone) EB-5?

Direct (Stand-Alone) EB-5 cases are filed using Form I-526. Form I-526E is used for regional center investments and generally does not apply to standalone Direct (Stand-Alone) EB-5 cases.

When must the jobs be created?

The required jobs must be created within the applicable period and shown to exist at the time the investor files to remove conditions on permanent residence.

Is Direct (Stand-Alone) EB-5 riskier than Regional Center EB-5?

Yes, in many cases. Because job creation must be proven through actual business operations and payroll, Direct (Stand-Alone) EB-5 involves higher operational and evidentiary risk than well structured regional center projects.

Are approval rates lower for Direct (Stand-Alone) EB-5?

Historically, Direct (Stand-Alone) EB-5 cases have experienced lower approval rates than regional center cases, largely due to stricter scrutiny of job creation, business viability, and documentation.

Can an investor lose their capital in Direct (Stand-Alone) EB-5?

Yes. EB-5 investments must be at risk, and business failure can result in partial or total loss of capital. This risk can be higher in Direct (Stand-Alone) EB-5 because the investor bears direct operational responsibility.

Can multiple investors use the same Direct (Stand-Alone) EB-5 business?

Multi-investor Direct (Stand-Alone) EB-5 structures are possible but significantly more complex and must be carefully structured. In many cases, a regional center model is more appropriate for pooled investments.

Who is a good candidate for Direct (Stand-Alone) EB-5?

Direct (Stand-Alone) EB-5 is often suitable for entrepreneurs, owner-operators, and family business investors who want control over the business and are prepared to manage hiring, operations, and compliance closely.

Latest case studies

• Bangalore, India
• Chennai
• Mumbai / Dubai
• EB-5 client obtains his immigrant visa, issued by the us consulate (Mumbai)