Gaining permanent residency in the U.S. through the EB-5 Immigrant Investor Program requires navigating a number of crucial processes to receive your green card.
Among them is filing a Form I-526E petition. This is a vital document that every investor must understand to ensure a successful immigration process.
Filing Form I-526E can be complicated, and making sense of this process can feel a bit overwhelming, especially if you’ve never done it before.
In this article, we’ll take an in-depth look at I-526E to guide you through the petition process and confidently pursue your American citizenship.
What Is Form I-526E, Exactly?
Steps to Take before Submitting the I-526E Petition
Differences between the EB-5 Regional Center Program and Direct EB-5 Investment
Everything You Need to Prepare Your Form I-526E Petition
- Proof of investment in an NCE
- Lawful source of funds
- Potential for job creation
- The investor’s managerial role
- Information on the regional center
- The investor’s background information
Submitting the I-526E Petition
Processing Times for Form I-526E Petitions
How Will the EB-5 Reform and Integrity Act of 2022 Impact I-526E Processing Time?
Experience Faster I-526E Processing with Twin Lakes
Form I-526E: The First Step toward an EB-5 Green Card
What Is Form I-526E, Exactly?
Filing Form I-526E—also known as Immigrant Petition by Regional Center Investor—is a crucial document in the EB-5 capital investment process.
This form is used by individuals who want to obtain U.S. citizenship by investing in a regional center. When you file this form, it shows United States Citizenship and Immigration Services (USCIS) that your investment qualifies for a two-year conditional residency.
Once this petition has been made, the investor is one step closer to receiving a permanent green card from the National Visa Center.
What is the difference between Form I-526E and Form I-526?
Form I-526 is the primary document used in the EB-5 program and is filed by foreign investors who want to obtain permanent residency in the U.S. This document is to be submitted by direct investors, not regional center investors.
Any foreign national who invests in the EB-5 program through regional centers or who wishes to make changes to their official business documentation, should use Form I-526E. Amendments, where relevant, must be made to establish ongoing eligibility for your green card status.
Steps to Take before Submitting the I-526E Petition
The EB-5 Immigrant Investor Program awards green cards to foreign nationals who make qualifying investments in U.S. businesses. These businesses are also called new commercial enterprises (NCEs) and must create at least 10 jobs for U.S. workers per investor.
Before filing Form I-526E, there are a few steps you have to complete:
- Research and choose a suitable EB-5 project: Thoroughly research and select a qualifying EB-5 project to invest in. Ensure USCIS approves the project and that it meets all necessary requirements, such as creating the required number of jobs and being located in a targeted employment area (TEA).
- Gather and organize supporting documents: Collect all the necessary documentation to support your EB-5 application, including proof of lawful source of funds, investment capital documentation, personal identification, and other required supporting materials.
- Double-check everything: Conduct due diligence on the project and the regional center involved to ensure legitimacy, verify its track record, and identify potential risks associated with the investment.
- Verify jobs created: Ensure that the chosen EB-5 project will create the required number of jobs for qualifying EB-5 investors, either directly or indirectly through an approved regional center.
Once you have completed these steps, you can start preparing your Form I-526E petition.
Looking for the quickest way to become a U.S. citizen? Invest in our Twin Lakes Georgia EB-5 Project today!
Differences between the EB-5 Regional Center Program and Direct EB-5 Investment
There are two options available to foreign nationals wanting to invest in the EB-5 program: direct and regional. Let’s take a brief look at the key differences between the two.
| Direct Investment | Regional Center | |
|---|---|---|
| Investment Structure | Investors put their capital directly into a new commercial enterprise (NCE) that they establish or purchase.
The investment must create jobs for qualifying U.S. workers and allows for more investor control and decision-making.
Form I-526 is used to indicate this investment type. | Investors put their capital into a USCIS-approved regional center. These are private or public agencies that facilitate EB-5 investments by pooling funds from multiple sources into larger projects.
Investor capital is typically used for NCEs and indirectly creates jobs through economic activity.
Form I-526E is used to indicate this investment type. |
| Job Creation Requirement | Only direct jobs created within the commercial enterprise can be counted toward the job creation requirement. This means the business becomes a job-creating entity (JCE).
Direct jobs are positions that demonstrate a direct employer-employee relationship in the business. | Investors can count both direct and indirect job creation toward the job creation requirement.
Indirect jobs are jobs that are created as a result of the economic activity generated by the regional center project. |
| Investor Involvement | Investors in a direct EB-5 project typically play a more active role in managing their investment and the business enterprise.
They are responsible for day-to-day operations and job creation. | Regional center investors play have a more passive role in the business operations, as the management team oversees the project and job creation activities. |
| Risks and Returns | Direct investments may carry a higher level of risk and require more hands-on management, but investors have more direct control over the investment and potential returns. | Regional center projects often involve larger-scale, pooled investments with a diverse range of investors.
While regional centers may offer potentially lower risk due to job creation calculations and experienced management, returns on investment might vary. |
The EB-5 Regional Center Program has proven to be the most popular investment model in the EB-5 program.
What is the difference in the minimum investment amount?
The minimum investment amount for projects located in targeted employment areas (TEAs) is $800,000—these are rural areas or areas that have an unemployment rate of 150% of the U.S. national average.
All other projects and direct investments require a minimum amount of at least $1,050,000.
Everything You Need to Prepare Your Form I-526E Petition
The three basic purposes of the I-526E petition are to prove that:
- A qualifying EB-5 investment was made in an NCE.
- The investment was made using lawfully sourced funds.
- The NCE has a credible business plan and viable employment creation projections.
In this section, we’ll discuss how investors can submit the appropriate evidence in Form I-526E. This application is typically prepared with an immigration attorney’s assistance.
Proof of investment in an NCE
Proof of investment is evidence used to show that you have put capital toward an NCE. This includes:
- Bank statements.
- Loan certificates.
- Promissory notes.
- Escrow account records.
If the NCE is located in a TEA, it qualifies for the reduced investment amount. In this case, evidence of TEA status must be submitted along with Form I-526E.
Data supporting rural TEA status can be obtained from the most recent 10-year national census and the U.S. Office of Management and Budget. Unemployment data can be obtained from the American Community Survey (ACS) and Local Area Unemployment Statistics (LAUS).
Lawful source of funds
One of the most challenging aspects of preparing the I-526E petition is proving that the EB-5 investment was sourced lawfully. USCIS has high standards for source-of-fund documentation, and it expects investors to provide accurate and thorough information.
Each investor’s source of funds will differ, but many EB-5 applicants use funds from:
- Salary payments.
- Real estate sales.
- Secured loans.
- Stocks proceeds.
- Gifted capital.
An immigration attorney’s guidance will be vital in determining the kind of documentation needed to prove that the source is legitimate.
Potential for job creation
Form I-526E must demonstrate that the investment will be used to create at least 10 qualifying jobs within two years after it was made. You’ll need to create a business plan that includes the following information:
- A description of the business’s purpose.
- Operational plan.
- Financial projections.
- Background information on the management team.
The USCIS may also find the business plan more credible if each projected job position is described in detail and a hiring timetable is provided.
Investors must also be aware of the differences in the way job creation is calculated by direct and regional center-sponsored EB-5 offerings.
The direct investment model requires NCEs to create full-time, W-2 positions that appear on the company’s payroll. These positions must be sustained for at least two years and filled by workers authorized for employment in the U.S.
NCEs in the regional center program can count indirect and direct employment, including part-time jobs.
For example, if a construction project purchases materials and services from local companies, these expenses may count as indirect jobs.
However, USCIS doesn’t allow indirect jobs to form more than 90% of a regional center NCE’s total job creation. Businesses in the regional center program are required to create at least one direct position.
Looking to secure 10 or more jobs for an EB-5 investment? The Twin Lakes Georgia EB-5 Project has created all needed for its EB-5 investors. Learn more here!
The investor’s managerial role
The EB-5 program requires investors to actively participate in managing their NCEs, but how involved they are in day-to-day operations largely depends on the company’s management structure.
For example, if you have invested in a regional center, your managerial involvement will likely be minimal as a limited partner.
Information on the regional center
Form I-526E must include information on the regional center that’s sponsoring the NCE. Before accepting I-526E filings for a project, regional centers must first submit a project request or I-956F form.
Each investor’s I-526E petition must include the receipt number for the project’s I-956F form, as well as evidence of all the administrative fees that were paid.
The investor’s background information
Investors are required to include background information on Form I-526E. This includes:
- Employment history.
- Net worth.
- Past compliance with U.S. work authorization and immigration laws.
Submitting the I-526E Petition
An investor’s immigration attorney typically submits Form I-526E to USCIS on their behalf. The filing fee is $12,160 and must be paid when submitting the form.
Once they have received your application, USCIS may either approve or deny your I-526E petition. They may also send a request for evidence if there is any information missing from your application.
As long as the applicant shows that the funds were sourced legally and provides sufficient evidence of compliance with USCIS standards, the agency’s decision should be favorable.
Form I-526E amendments
In some cases, an EB-5 investor’s NCE or regional center may be denied because it doesn’t comply with USCIS regulations. If a regional center or NCE is terminated for reasons beyond an investor’s control, the investor may file an amendment to their Form I-526E.
Once they’ve filed the amendment, they can either invest in a different project or invest their capital in a different regional center.
Processing Times for Form I-526E Petitions
It takes several years for a foreign national to receive U.S. permanent resident status through the EB-5 program, and USCIS processing times can be lengthy.
Investors should note that USCIS’s processing capacity was significantly impacted by the COVID-19 pandemic.
Investors from China and India—currently subject to cutoff dates published in the monthly Visa Bulletin—can expect an even longer wait.
However, investors in rural TEA projects qualify for significantly faster priority processing.
How Will the EB-5 Reform and Integrity Act of 2022 Impact I-526E Processing Time?
In March 2022, President Biden enacted the EB-5 Reform and Integrity Act of 2022, which modifies several key policies in regional centers and NCEs.
The bill grants priority processing times to rural TEA investors and reserves 32% of the annual EB-5 visa pool for these projects. As a result of the increased funding that USCIS will receive for the EB-5 program, I-526E processing times may decrease in the coming months.
Experience Faster I-526E Processing with Twin Lakes
The Twin Lakes Project is one of EB5AN’s most successful and secure investments. It encompasses over 180 projects with an expected value of over $24 billion.
The project guarantees investment repayment and job creation, as well as the added benefit of I-526E processing. Overall, the Twin Lakes Project is in good standing and is one of the most beneficial projects that foreign nationals can invest in. Located in a rural area, Twin Lakes’ investors qualify for priority processing.
Form I-526E: The First Step toward an EB-5 Green Card
Obtaining approval for Form I-526E requires doing careful research, choosing a USCIS-compliant EB-5 offering, and providing detailed evidence.
This crucial hurdle in the EB-5 process is the first step a foreign national takes toward obtaining U.S. permanent resident status. If you are a prospective investor interested in immigrating through the EB-5 process, contact EB5AN for industry-leading expertise.
We have helped more than 1,900 families get started on their EB-5 immigration journey, and our high-quality projects have enjoyed an I-526 petition approval rate of 100%.
