Regional Center or Direct Investment for your EB-5 Petition?
Kyle Huffman • August 8, 2024
As the effects of the EB-5 Reform and Integrity Act of 2022 continue to develop, this immigrant visa category has seen skyrocketing popularity in recent months. Prior to 2022, many high-net-worth individuals shied away from the EB-5 category entirely, due to widespread uncertainty around the program. It’s no secret that the EB-5 category is expensive, and who could blame an investor for being hesitant to park such a significant sum of capital into an investment vehicle with limited oversight or transparency? With the vast majority of concerns around the program having been alleviated through the EB-5 Reform and Integrity Act of 2022 provisions, allowing greater regulatory oversight, increasing investment thresholds, transparency, and even removing layers of bureaucratic red-tape, investors are once again eager to participate in this highly beneficial program.
If considering a significant financial investment in the United States, the EB-5 program is an excellent opportunity not only to make the investment, but to secure permanent residency, and eventually citizenship, in the United States for those contributions. The idea behind the EB-5 program is to generate economic stimulation for the United States, including significant numbers of job opportunities being created for U.S. workers. The investment thresholds for the qualifying minimum investment amounts were designed based upon the capital investment achieving a sufficient level of economic stimulation. However, with a large margin between the two qualifying investment thresholds, and a broad array of potential projects to invest in, this leaves many investors wondering which EB-5 pathway is right for them.
In a broad sense, there are two types of EB-5 investment: Direct Investment, or Investment through a USCIS-approved regional center. The best path for each potential case depends on the priorities of each individual applying.
For the direct investment, the petition is filed with form I-526, Immigrant Petition by Standalone Investor. An investor filing an EB-5 Direct Investment Petition has the opportunity to invest in a company that is responsible for creating at least 10 full-time jobs. So long as the organization can verify the actual creation and existence of these jobs, these petitions stand an excellent chance of being approved. These petitions can be particularly beneficial for an investor with a strong belief in the success of a new company or concept and wants the bulk of their investment focused directly on the job-creating company.
For a regional center investment, the petition is filed with form I-526E, Immigrant Petition by Regional Center Investor. These regional centers are created for the express purpose of facilitating EB-5 investment. Each regional center must properly apply with USCIS, and receive approval, before they can be listed by USCIS on the Approved EB-5 Immigrant Investor Regional Centers list. One of the key benefits to investing through a regional center is the facilitation of the application process, because the regional centers will provide a substantial portion of the required documentation. However, this also typically results in a lower level of control over the investment funds, as compared with a direct investment.
For both types of EB-5, the investment threshold is determined by geographic and economic factors within the United States. Because the program is designed to stimulate the U.S. economy, there is a broad preference for investing in what are known as “Targeted Employment Areas (TEAs).” These are either rural areas, or other areas designated as experiencing a high unemployment rate, defined as an unemployment rate at least 50% higher than the U.S. national average. The minimum qualifying investment amount for a Targeted Employment Area is only $900,000, as compared with a minimum threshold of $1.8 million for an investment outside of a TEA. For those investors who are primarily motivated by receipt of a green card, there is not much benefit to investing twice as much capital into a non-TEA, however, for those investors who are confident in a particular investment project and are motivated primarily by potential returns, it may be worthwhile to invest directly into the organization with higher potential, regardless of the geographic location within the U.S. where the investment will be focused.
Ultimately, the decision on which EB-5 pathway is best is a determination that must be made by each individual investor and changes on a case-by-case basis. However, with such a large sum typically at stake, every investor wants to have confidence that they are choosing the best path for themselves to accomplish their individual goals. If you are considering pursuing an EB-5 investment, and would like to discuss questions or concerns you may have around which EB-5 path is right for you, I encourage you to schedule a consultation with one of our skilled attorneys.
This blog is not intended to be legal advice and nothing here should be construed as establishing an attorney client relationship. Please schedule a consultation with an immigration attorney before acting on any information read here.
Kyle Huffman
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These include: Asylees and refugees Special immigrant juveniles Violence Against Women Act (VAWA) self-petitioners T and U visa applicants Temporary Protected Status (TPS) applicants Importantly, even if someone later adjusts status through a different pathway that is subject to public charge, any benefits they received while in an exempt category will not be held against them. What Public Benefits Are Not Considered in the Public Charge Test? It is a common and harmful myth that using any public benefit will jeopardize your immigration status. In fact, most non-cash benefits do not count against you in a public charge determination. According to USCIS and DHS guidance, the following types of assistance (current as of July 1, 2025) are not considered: Health-Related Benefits Medi-Cal/Medicaid, except for long-term institutional care Children’s Health Insurance Program (CHIP) Health insurance through the ACA Marketplace, including subsidies COVID-19 testing, vaccines, and treatment Community health services, crisis counseling, and short-term shelters Food and Nutrition SNAP (Food Stamps) WIC School meal programs Food banks and emergency food assistance Housing and Energy Emergency shelter Rental assistance (e.g., McKinney-Vento programs) Energy assistance (e.g., LIHEAP) Education and Childcare Public schooling Head Start Childcare subsidies (e.g., CCDF) Educational grants and scholarships Federal Cash and Tax Benefits Earned income tax credit (EITC) Child Tax Credit (CTC) Stimulus checks Unemployment insurance Social Security and veteran’s benefits Disaster and pandemic-related cash aid In short, just because a benefit is public or government-funded doesn’t automatically make it count against you. 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For that reason, we generally recommend that individuals who are applying for adjustment of status, or who may be subject to the public charge ground in the future, avoid enrolling in Medi-Cal or Medicaid at this time, unless absolutely necessary. Final Thoughts Immigration law is complex, and the rules surrounding public charge can feel confusing or even frightening. But it’s important to understand that using most public benefits—especially for food, education, and healthcare—will not automatically jeopardize your green card or visa application. Still, because policy can change quickly, we urge individuals to consult with an immigration attorney before applying for any public assistance—especially healthcare programs like Medi-Cal or Medicaid. If you have questions or concerns about how public benefits might impact your immigration case, our office is here to help. We are committed to providing up-to-date, personalized guidance to keep your immigration journey on track. Disclaimer The information provided herein is for general informational purposes only and does not constitute legal advice. Every immigration case is unique, and the application of the public charge rule may vary depending on your specific situation. If you believe this topic may apply to you or you need individualized legal guidance, we encourage you to contact one of our highly-qualified legal professionals for a consultation and assistance tailored to your circumstances. Resources: USCIS Public Charge Resources ILRC Medi-Cal and Public Charge Alert (2024) California Medi-Cal Immigrant Eligibility FAQ
