On 30 September 2026, the grandfathering protection in the EB-5 Reform and Integrity Act of 2022 (RIA) expired for new regional center filings. Petitions filed on or before that date are protected even if the regional center program lapses. Petitions filed after it are not.
The regional center program itself remains authorized through 30 September 2027. So nothing shut down on that date. What changed is risk.
For a new investor filing in October 2026 or later, a regional center petition now carries a question mark that a direct investment petition does not. That shifts attention to direct EB-5, and direct EB-5 lives or dies on the business plan.
What the September 2026 Deadline Actually Did
The Grandfathering Clause
The RIA included a safeguard. If Congress let the regional center program expire, petitions filed on or before 30 September 2026 would still be processed and adjudicated under the rules in place when they were filed.
That safeguard has now closed to new filers.
What It Means for New Regional Center Investors
A regional center investor who files Form I-526E after 30 September 2026 depends on Congress reauthorizing the program before September 2027, or on USCIS adjudicating the petition before any lapse. Given current processing times, that is a real gamble for many investors.
Why Direct EB-5 Is Unaffected
Direct EB-5 is part of the permanent immigration statute. It does not need reauthorization. It had no sunset and no grandfathering clause because it never needed one.
| Factor | Regional Center (Filed After 30 Sept 2026) | Direct Investment |
| Statutory basis | Temporary, authorized to 30 Sept 2027 | Permanent |
| Grandfathering protection | None | Not needed |
| Petition form | I-526E | I-526 |
| Minimum investment | $800,000 (TEA) or $1,050,000 | $800,000 (TEA) or $1,050,000 |
| Job counting | Direct, indirect and induced | Direct W-2 jobs only |
| Investor role | Passive (limited partner) | Active in management or policy |
| Business plan author | Regional center or project sponsor | Investor and their advisors |
Investment amounts are scheduled for inflation adjustment starting in 2027, so check current figures before you commit funds.
Why the Business Plan Carries More Weight in Direct EB-5
In a regional center deal, the project sponsor supplies the business plan, the economic report and the offering documents. The investor mostly supplies source of funds evidence.
In direct EB-5, the investor owns the plan. There is no sponsor, no pooled economist report and no indirect job credit to cushion weak numbers. The plan must prove, on its own, that the new commercial enterprise will create at least 10 full time jobs for qualifying U.S. workers.
That standard comes from Matter of Ho, a 1998 precedent decision that still shapes USCIS review. The plan must be comprehensive and credible enough for an officer to reasonably conclude the business has a realistic chance of success.
Our guide on the EB-5 visa business plan and USCIS requirements covers each Matter of Ho element in depth.
What USCIS Checks in a Direct EB-5 Business Plan
1. Ten Direct, Full Time Jobs
Only W-2 employees of the new commercial enterprise (or its wholly owned subsidiaries) count. Full time means at least 35 hours per week. The investor, the investor’s spouse and the investor’s children do not count. Independent contractors do not count.
The plan needs a staffing table showing each position, hire date, hours and wage, with job creation happening within a reasonable timeframe.
2. A Realistic Hiring Timeline
USCIS reviews whether jobs will exist when the investor files to remove conditions. A plan that shows three hires in year one and fourteen in year three needs to explain why the jump happens. Revenue must support the payroll at each step.
3. Capital at Risk
The investment must be at risk. The plan should show exactly how the $800,000 or $1,050,000 is deployed: lease, fit out, equipment, inventory, initial payroll. Money sitting in a bank account for “future expansion” raises red flags.
4. Credible Market Analysis
Officers look for specific market evidence tied to the business location. National industry growth rates alone do not satisfy Matter of Ho. Show local competitors, pricing, demand drivers and why this location works.
5. Investor Management Role
Direct investors must be engaged in day to day management or policy formation. The plan’s management section should describe the investor’s role, authority and relevant background.
6. Consistent Financials
Revenue, payroll, rent and capital deployment must agree across every section. Inconsistencies are the most common reason we see RFEs on direct plans.
Direct EB-5 Business Types That Work
Not every business can support 10 full time W-2 jobs on an $800,000 investment. Here is how common direct EB-5 models compare.
| Business Model | Typical Jobs Supported | Capital Intensity | Direct EB-5 Fit |
| Full service restaurant | 15 to 30 | Medium | Strong |
| Home health or senior care agency | 15 to 40 | Low | Strong |
| Logistics or trucking operation | 10 to 25 | High | Good |
| Manufacturing or food processing | 10 to 50 | High | Good with larger investment |
| Franchise with multiple units | 20 to 60 | Medium | Strong |
| Professional services or consulting | 3 to 10 | Low | Weak |
| E-commerce with outsourced fulfilment | 2 to 8 | Low | Weak |
Businesses that rely on contractors or automation struggle to show 10 direct jobs. That does not make them bad businesses. It makes them poor EB-5 vehicles.
The Direct EB-5 Plan Structure We Use
A direct EB-5 plan that holds up to review typically includes:
- Executive summary with investment amount, TEA status, jobs and timeline.
- Company and ownership showing the investor’s equity and management role.
- Industry and local market analysis with location specific data.
- Competitive analysis naming local competitors and positioning.
- Marketing and sales plan with customer acquisition costs.
- Operations plan covering location, suppliers, licensing and permits.
- Personnel plan with an org chart, position descriptions and a hiring schedule for all qualifying jobs.
- Capital deployment schedule tracing every dollar.
- Five year financial projections tied to the hiring plan.
- Risk factors and mitigation.
Want to know who writes these and what USCIS expects from them? Read our guide to EB-5 business plan writers and what USCIS expects.
Decision Matrix: Regional Center or Direct After September 2026
Every investor’s situation differs, and your immigration attorney should make the final call. This matrix frames the discussion.
| Your Situation | Leans Toward |
| Want to run a business yourself | Direct |
| Want a passive investment | Regional center (accept reauthorization risk) |
| Filed a regional center I-526E before 30 Sept 2026 | Stay the course; grandfathering applies |
| Have industry operating experience | Direct |
| Business can support 10+ W-2 jobs | Direct |
| Want to avoid reauthorization risk entirely | Direct |
| Need indirect job credit to reach 10 jobs | Regional center |
Timing and Processing
Processing times matter more now. A regional center petition filed after the grandfathering deadline is exposed to any program lapse until it is adjudicated. Direct petitions do not face that exposure but still take time. Check current trends in our guide on EB-5 visa processing time.
The RIA reserved visas for rural, high unemployment and infrastructure investments. Infrastructure set asides apply only to regional center projects. A direct investment in a qualifying rural or high unemployment area can still use the lower $800,000 threshold, and your attorney can confirm whether it also qualifies for a set aside category.
What This Means If You Are a U.S. Based Investor
Some investors are already in the United States on E-2, L-1 or H-1B status and want to move to permanent residence through their own business. Direct EB-5 often fits them well because they already know the market. Our guide on EB-5 business plan requirements for U.S. investors explains how to build on an existing operation.
For a broader view of how business plans shape investment immigration outcomes, see our piece on EB-5 visa business plans and their role in investment immigration success.
Frequently Asked Questions
Did the EB-5 program end on 30 September 2026?
No. The grandfathering protection for new regional center filings ended. The regional center program is authorized through 30 September 2027, and direct EB-5 is permanent.
Is direct EB-5 affected by the September 2026 deadline?
No. Direct EB-5 does not depend on regional center reauthorization.
How many jobs must a direct EB-5 investment create?
At least 10 full time positions for qualifying U.S. workers, filled by direct W-2 employees of the new commercial enterprise.
What makes a direct EB-5 business plan pass USCIS review?
Compliance with Matter of Ho: comprehensive, credible, location specific, with a realistic hiring schedule and consistent financials.
How much does a direct EB-5 business plan cost? Our immigration business plan cost guide gives realistic ranges.
It varies with complexity and the number of locations. Our immigration business plan cost guide gives realistic ranges.
Build a Direct EB-5 Plan That Stands on Its Own
After 30 September 2026, more investors are choosing to control their own EB-5 outcome through direct investment. That puts every job, every dollar and every assumption in the investor’s own plan.
BPlanWriter writes Matter of Ho compliant direct EB-5 business plans with staffing tables, capital deployment schedules and five year projections that agree across every page. We work alongside your immigration attorney and revise until they are satisfied. See our EB-5 Visa Business Plan service and book a free consultation.
This article is general information and not legal advice. Consult a licensed immigration attorney about your case.
