August-18-2023
EB-5 QUESTION OF THE WEEK: WHAT IS FORM I-526?
Form I-526 must be submitted by foreign investors to the United States Citizenship and Immigration Services (USCIS) to participate in the EB-5 Immigrant Investor Program. There are two distinct routes of investment through which families can apply for their U.S. Green Cards through the EB-5 program – the direct investment route and the regional center route. Both routes require an investment of $800,000 if the investment is made in a targeted employment area and $1,050,000 in all other areas. Foreign investors can include their spouses and children under the age of 21 in their EB-5 applications and receive Green Cards for all qualifying members of the family.
In a direct investment, an EB-5 applicant must directly invest the required capital contribution in a new commercial enterprise. EB-5 applicants are not allowed to pool their investments in a direct investment. A direct investment requires more of an active role from the EB-5 applicant as they have to manage and oversee the business in the United States.
In a regional center investment, a family chooses a government pre-approved real estate project hosted by a regional center for their EB-5 investment. A regional center is an economic unit designated by USCIS to prompt economic growth in the U.S. Regional centers pool EB-5 investors’ funds to finance the construction of a project in the United States. The regional center route is preferred by most EB-5 investors given its many benefits, including but not limited to the ease and hassle free application process, freedom to choose the physical place of residence in the United States upon receiving a Green Card, higher chances of approval by USCIS, and greater flexibility.
Prior to passage of the EB-5 Reform and Integrity Act (RIA) in March 2022, the same form was used for standalone and regional center investors. However, with positive reforms implemented to the EB-5 program by the RIA also came a change in the required form to be filed by EB-5 investors. Form I-526 must be filed by EB-5 investors participating in the direct investment route and Form I-526E must be used by EB-5 investors participating in the regional center investment route. These forms are recommended to be filled by experienced immigration attorneys. The forms are submitted to USCIS along with the required documents and filing fees.
Form I-526 (Immigrant Petition by Standalone Investor) is used by a standalone investor to petition USCIS for status as an immigrant to the United States under section 203(b)(5) of the Immigration and Nationality Act (INA). This form is used by EB-5 petitioners that are applying for the EB-5 program through the direct route. Form I-526 is 18 pages and inclusive of nine parts. The petition requires information about the investor, the investor’s dependents, the new commercial enterprise to which the investment is being contributed, and the source of funds of the investment.
Form I-526E (Immigrant Petition by Regional Center Investor) is used by an investor pooling their investment with one or more qualified immigrants to petition USCIS for status as an immigrant to the United States. This form is used by EB-5 petitioners that are applying for the EB-5 program through the regional center route. Form I-526E is 16 pages and inclusive of 12 parts. The petition requires information about the investor, the investor’s dependents, the regional center and project selected for the investment, and the source of funds of the investment.
With over ten years of experience in the EB-5 industry, our team of U.S. licensed lawyers and professionals at The American Legal Center are ready to assist you and your family on your EB-5 application. We have the necessary tools and connections with U.S. attorneys to properly complete and file the necessary petitions on your behalf. Contact our team today for more information.