What is Form I-526E for EB-5 Investors?

Header Image of a US Green Card with the title What is Form i-526e for EB-5 Investors?

Form I-526E, also known as the "Immigrant Petition by Regional Center Investor," is the first petition filed by a foreign investor seeking to secure U.S. permanent residence through an investment in a new commercial enterprise associated with a USCIS-designated regional center. This blog post will provide a guide to Form I-526E, including an overview, documentation required for filing the petition, instructions for completion, costs, processing times, and how Peachtree Group can assist you throughout the application process. This is slightly different than a I-526 form, which is an "Immigrant Petition by Standalone Investor." You can read more here about the two different forms.

Overview of Form I-526E: Your promise to fulfill the requirements of the EB-5 program

The I-526E form is the initial petition filed by an individual seeking an EB-5 visa. This form is submitted to the U.S. Citizenship and Immigration Services (USCIS) and is designed to demonstrate the applicant has made or is actively in the process of making a qualifying investment in a new commercial enterprise (“NCE”) associated with a USCIS -designated regional center, which will benefit the U.S. economy by creating ten (10) full-time jobs for U.S. workers.  Approval of the I-526E petition is a crucial step in obtaining an EB-5 visa, which grants the investor and their immediate family members conditional U.S. permanent residency.

In short, Form I-526E is your promise to fulfill the requirements of the EB-5 program.

Evidence to Accompany your Form I-526E Petition

Given the complexity of the Form I-526E application, we advise our EB-5 investors to engage immigration attorneys with EB-5 experience to assist them with the preparation and filing of their I-526E Petition.

Filling out Form I-526E involves several steps, each requiring careful attention to detail. Generally, these steps are done by the EB-5 investor’s immigration attorney. Using the latest version of Form I-526E from the USCIS website, attorneys need the investors to provide personal details, including full name, date of birth, nationality, mailing address, physical address for the past five (5) years, employment history, as well as information about the EB-5 investor’s spouse and children.

The Form I-526E also requires information about the Regional Center and the project application. Peachtree Group provides that information as part of the I-526E Template prepared forEB-5 investors in each of our projects.

Form I-526E also asks for information about the investment. EB-5 investors provide details about the investment amount, the composition of their investment and the source of the invested funds. The EB-5 investors must submit documentation proving the investment funds have been lawfully obtained. In addition, Form I-526E asks for information about visa processing, immigration proceedings, as well as bonafides of persons involved with the Regional Center Program.

Unlike the I-526 Petitions filed before the EB-5 Reform and Integrity Act of 2022 (“RIA”), when the petitions included the offering documents, project related documents and the investor specific documents, I-526E Petitions filed post RIA are mainly comprised of documentation of the EB-5 investors’ lawful source of capital.

The typical documents filed with Form I-526E Petition includes:

1. Investment in a USCIS-designated Regional Center: Post RIA, Regional Centers must file a Form I-956F, Application for Approval of an Investment in a Commercial Enterprise before any EB-5 investors can file their Form I-526E Petitions. As evidence of an invest in a new commercial enterprise for which the Regional Center has filed a Form I-956F, the EB-5 investors should provide a copy of the Receipt Notice or the Approval Notice received from USCIS for the Form I-956F filing. Peachtree Group is providing the Receipt Notice or Approval Notice as part of the I-526E Template petition prepared for the EB-5 investors in each of our projects.  

With the Form I-956F filing, Peachtree, through the Regional Center, provides USCIS the full package of the offering documents, the business plan, economic impact report, Regional Center designation letter, as well as numerous other project related documents.

Please note: USCIS specifically asked during one of their engagements not to resubmit the documents filed with the I-956F, but to include the Receipt Notice with the investor’s Form I-526E Petition.

In addition, in Part 4, Information About Your Regional Center and Project Application of the FormI-526E, the EB-5 investors are supposed to provide specific information about the filed Form I-956F, the Regional Center, the NCE and the project, which allows USCIS to associate their I-526E filing with the Form I-956F filed for the project they selected for their EB-5 investment. Peachtree is also provides this information with the Sample Form I-526E, part of the I-526E Template petition.    

2. Investment: The EB-5 investors must provide evidence they have invested or are actively in the process of investing the required amount of capital. The EB-5 investors must invest $1,050,000 or $800,000 if the investment is made in a project located in a rural or high unemployment targeted employment area (“TEA”) or an infrastructure project.

The NCE is a for-profit organization formed in the United States after November 29, 1990 for the ongoing conduct of lawful business that receives, or is established to receive, capital investment from immigrant investors. Such evidence may include but is not limited to, copies of wires, bank statements showing amounts deposited into the separate account established for the NCE, evidence of monies transferred or committed to be transferred to the NCE in exchange for shares of stock that cannot be redeemed at the holder’s request, or any loan or mortgage agreement, promissory note, security agreement, or other evidence of borrowing that is secured by assets owned by the EB-5 investors (other than those of the NCE) and for which the EB-5 investors is personally and primarily liable.

3. Lawful Capital: TheEB-5 investors must provide evidence the capital they have invested or are actively in the process of investing, as well as any funds used to pay administrative costs and fees, were obtained through lawful means.

Such evidence may include but is not limited to:

  • Foreign business registration records
  • The investors’ tax returns filed within the last seven years in or outside the United States
  • Evidence of other sources of capital.
  • If the investment funds were gifted or borrowed, the EB-5 investor must submit evidence from the donor or, if other than a bank, the lender demonstrating that such funds were obtained through lawful means and that the funds were gifted or loaned in good faith and were not gifted or loaned to circumvent any limitations imposed on permissible sources of capital, including, but not limited to proceeds from illegal activity.

I-526E Processing Time and Costs

I-526E Processing Time: At the time of this publishing, USCIS has yet to publish their processing time for the new Form I-526E. Invest in the USA (“IIUSA”), the industry trade association for the EB-5 Regional Center Programs, has recently published an analysis of data collected from the EB-5 industry and concluded that the I-526E Petitions associated with a project located in a rural TEA were approved in 10 months on average, with a normal range of 6 to 15 months, while I-526E Petitions associated with a project located in a high-unemployment TEA were approved in approximately  14 months on average, with normal range of 11 to 16 months.

Cost: As of November 2024, the I-526E filing fee is $11,160. If the EB-5 investors are filing their initial Form I-526E on or after October 1, 2022, they must include a separate fee of $1,000 as required by RIA. Be sure to check the USCIS website for the most up to date fee information.

How Peachtree Group Can Help

Navigating the EB-5 application process can be complex. Peachtree Group offers comprehensive support to investors throughout the I-526E petition process, including:

  • Consultation and Guidance: Provide expertadvice on qualifying investments and ensuring compliance with EB-5 regulations.
  • Document Preparation: Assist in gatheringand preparing necessary documentation to support the EB-5 investor’s I-526E Petition.
  • Tracking and Updates: Help monitor theprogress of the EB-5 investor’s petition and provide updates on any changes

Frequently Asked Questions

What is the I-526E Form?

Form I-526E is an application used by foreign nationals pooling their investment with one or more qualified immigrants participating in the Regional Center Program to petition for an EB-5 visa. It demonstrates that the investor has made or is in the process of making a qualifying investment in a new commercial enterprise and meets the program’s requirements for obtaining conditional U.S. permanent residency.

What Do I Need to Fill Out an I-526E?

EB-5 investors must provide personal identification information, details about the investment amount and enterprise, evidence of the lawful source of investment funds.

What Happens After the I-526E Form is Approved?

Once Form I-526E is approved, the next step is consular processing or adjustment of status. If you are outside the U.S., you will attend a visa interview at a U.S. embassy or consulate.

If you are already in the U.S., you can concurrently file for adjustment of status with your Form I-536E Petition. After obtaining an EB-5 visa, you and your immediate family members can become conditional permanent residents, with the conditions removed upon proving that the investment has met the program requirements.

By understanding the Form I-526E Petition, you will be well-prepared to start navigating the EB-5 application process successfully. If you need assistance, Peachtree Group is here to provide expert support and ensure your application is filed accurately and efficiently.

Additional Resources

For more information about the I-526E Form and the EB-5 Immigrant Investor Program, consider consulting the following resources:

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Understanding the EB-5 Regional Center Program Advisory Committee Authorization Act

To improve the administration of the Regional Center Program, on February 5, 2024, a bipartisan group of four US Congressmen introduced the EB-5 Regional Center Program Advisory Committee Authorization Act. Here's what you need to know.

The EB-5 Visa program is a pathway for foreign investors seeking permanent residency in the United States. The EB-5 Regional Center Program stands out because it pools investments in specific geographic areas, stimulating economic growth and job creation.

To improve the administration of the Regional Center Program, on February 5, 2024, a bipartisan group of four US Congressmen introduced the EB-5 Regional Center Program Advisory Committee Authorization Act. Adam Greene, EVP EB-5 for Peachtree Group was in Washington D.C. recently meeting with congressional staffers as part of the IIUSA quarterly fly-in. It was a hectic day meeting and discussing EB-5 with 18 Congressional offices. Here is what the IIUSA delegation explained to the staffers:

What is the EB-5 Regional Center Program Advisory Committee Authorization Act?

The EB-5 Regional Center Program Advisory Committee Authorization Act, which is supported by IIUSA, would establish an advisory committee inside U.S. Citizenship and Immigration Services (USCIS) to communicate, coordinate, and advise USCIS on administering the Regional Center Program.

The purpose of the Act is to establish an advisory committee to communicate, coordinate, and advise USCIS on administering the Regional CetnerProgram. 

Key Benefits for EB-5 Investors:

  1. Enhanced Transparency and Accountability: One of the significant advantages of the EB-5 Regional Center Program Advisory Committee Authorization Act is the promotion of transparency and accountability within the program. By establishing an advisory committee composed of stakeholders from various backgrounds, including EB-5 investors, developers, and regional center representatives, the act ensures the interests of all parties involved are represented. This increased transparency can provide BE-5 investors with greater confidence in the program’s integrity and decision-making processes.
  2. Streamline Program Operations: The advisory committee authorized by this act will play a crucial role in streamlining the operations of the EB-5 Regional Center Program. By providing recommendations on regulatory and policy changes, as well as addressing operational challenges faced by regional centers, the committee can contribute to making the program more efficient and responsive to the needs of EB-5 investors. This streamlining can lead to faster processing times for investor petitions and a smoother overall experience for participants in the program.
  3. Improved Impact: Another benefit of the EB-5 Regional Center Advisory Committee Authorization Act is the potential for improved impact of the EB-5 Program. The advisory committee will have the mandate to assess the effectiveness of regional center projects and make recommendations for enhancing their economic impact and job creation potential. By facilitating the development of high-quality projects that align with the program’s objectives, EB-5 investments can offer improved economic impact and greater security.
  4. Mitigation of Risks: The establishment of an advisory committee focused on the EB-5 Regional Center Program also presents an opportunity to mitigate risks associated with EB-5 investments. Through ongoing discussion of regional center activities and structures, the committee can help the industry structure investments which comply with EB-5 rules and regulations. This proactive approach to risk management can help safeguard the interest of EB-5 investors and preserve the integrity of the program as a whole.

The EB-5 Regional Center Program Advisory Committee Authorization Act will help EB-5 investors navigate the complex landscape of the EB-5 Program in the United States. As an officer of IIUSA and a member of the Public Policy committee, Peachtree’s Adam Greene is able to participate in discussions with policymakers as they refine the details of this legislation. EB-5 investors can look forward to potential enhancements that will strengthen their confidence in the program and pave the way for successful outcomes.

 

For more information on the EB-5 Visa Program or Peachtree Group’s offerings, Contact Us.

About Peachtree Group

Peachtree Group is an investment firm driving growth with a diverse portfolio of commercial real estate assets and other ventures, with a specialty in hospitality. We’ve executed hundreds of investments since inception with a focus on real estate acquisition, development, and lending. Today, we manage billions in equity, augmented by services designed to protect, support, and grow your investment.

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USCIS Raises I-526E Filing Fees 204%: Implications for EB-5 Investors

The United States Citizenship and Immigration Services (USCIS) has recently announced a significant 204% increase in the filing fees for the I-526E, Immigrant Petition by Regional Center Investor, the crucial, first step in the EB-5 Immigrant Investor process. This adjustment in fees has near-term implications for prospective EB-5 investors. This article delves into the details of the fee increase and its potential impact on individuals seeking U.S. permanent residency through the EB-5 program.

The United States Citizenship and Immigration Services (USCIS) has recently announced a significant 204% increase in the filing fees for the I-526E, Immigrant Petition by Regional Center Investor, the crucial, first step in the EB-5 Immigrant Investor process. This adjustment in fees has near-term implications for prospective EB-5 investors. This article delves into the details of the fee increase and its potential impact on individuals seeking U.S. permanent residency through the EB-5 program.

What is an I-526E?

The EB-5 Immigrant Investor Program offers a pathway for foreign investors to obtain a U.S. green card by making a qualifying investment in a new commercial enterprise that generates employment for U.S. workers. TheI-526E petition is a vital component of the application process, serving as the initial step in demonstrating the investor’s commitment to the program.

Details of the I-526E Fee Increase

According to the USCIS website (Frequently Asked Questions on the USCIS Fee Rule | USCIS), the I-526E fee will increase from $3,675 to $11,160, a 204% increase, on April 1, 2024. This adjustment is part of the USCIS’s broader efforts to cover the escalating costs associated with processing and adjudicating immigration petitions. The fee increase applies to all new I-526E filings.   EB-5stakeholders are still waiting for USCIS to conduct a separate fee study required by the new EB-5 law (the EB-5 Reform and Integrity Act of 2022, or the “RIA”). Section 106 of the RIA requires USCIS to perform a fee study about the level of fees needed to adjudicate EB-5 related petitions in a timely manner.  The April 1, 2024 increase in fees is separate from any future increase that may result from this required fee study, so investors should stay informed about potential further increases in the future.

Impact of the I-526E Fee Increase on EB-5 Investors

  • Financial Considerations: The fee hike holds financial implications for EB-5 investors, as the program already demands a substantial investment. The increased filing fee adds an additional financial burden for prospective immigrants considering the EB-5 route. Investors should factor in this change when evaluating the overall cost of participating in the program.
  • Decision-Making Process: The elevated filing fees may influence the decision-making process for potential investors.  Individuals who were contemplating EB-5participation may want to accelerate their decision in the hopes of avoiding the higher application fee. Investors will save $7,485 by filing their FormI-526E before April 1, 2024.  
  • Pending Applications: Investors with pendingI-526E petitions should be aware of the fee adjustment and consider how it might impact their ongoing applications. Although it appears the new fees will only apply to petitions and applications filed on or after April 1, 2024, it is advisable for applicants to consult with immigration professionals to understand how the fee adjustment may affect their ongoing applications and could impact forms to be filed through their immigration process in the future.
  • Financial Planning: The fee increases underscore the importance of meticulous financial planning for prospective EB-5 investors. Understanding the updated fee structure is crucial for making informed decisions about participation in the program and ensuring that all financial requirements are met, including the sourcing of any funds used to pay the administrative costs and fees associated with your investment.
  • Consider a Partial Investment: Peachtree’s EB-5 projects are structured to allow EB-5participants to invest just part of the full $800K required investment initially, with the remainder invested over several months.

The USCIS’s decision to raise the I-526E filing fees introduces a new dimension to the already intricate landscape of the EB-5Immigrant Investor program. Prospective investors are advised to closely evaluate the updated fee structure, engage with immigration professionals for tailored advice, and make informed decisions based on their individual financial circumstances. As the EB-5 program remains an attractive avenue for obtaining U.S. permanent residency, investors should stay informed and adapt to changes in order to navigate the evolving landscape successfully.

Peachtree Group has current offerings that are structured to qualify investors to apply for the EB-5 program.

To learn more about EB-5 and Peachtree’s EB-5 offerings, fill out our contact form.

 

About Peachtree Group

Peachtree Group is an investment firm driving growth with a diverse portfolio of commercial real estate assets and other ventures, with a specialty in hospitality. We’ve executed hundreds of investments since inception with a focus on real estate acquisition, development, and lending. Today, we manage billions in equity, augmented by services designed to protect, support, and grow your investment.

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New EB-5 Rules Require Investors to Tread Carefully

U.S. Citizenship and Immigration Services (USCIS), the American federal agency that oversees immigration, issued guidance recently about the investment period required for EB-5, America's residency by investment program, but there are still questions.

On October 11, the U.S. Citizenship and Immigration Services, (USCIS), the American federal agency that oversees immigration, issued long-awaited guidance about the investment period (known as the “sustainment period”) required for EB-5, America’s residency by investment program.

The guidance stated that investors may receive back their required $800,000 capital after just two years from investing. While many in the EB-5 world have been waiting for USCIS to clarify the sustainment period requirement, the October 11 USCIS policy leaves open many questions, including whether the guidance itself was issued in accordance with proper procedures required under US law.

The Official Statute


The official statute regarding EB-5 was updated with the passage of the “EB-5 Reform and Integrity Act of 2022” (the “RIA)” on March 15, 2022. As with the federal agency administering any official statute, USCIS must write formal regulations under a proscribed process. Only after a formal rulemaking process, which requires a public notice and comment process, do regulations become the rules under which the law is administered.

While EB-5 program participants have been asking USCIS to issue guidance and regulations, it is not clear that USCIS has the legal authority to change existing rules unless and until it follows the rule making process.  This is especially true in cases where existing regulations can be read as consistent with the new statute, as in the case of the sustainment period.

The Cause of Confusion


The cause for this confusion is statutory language in the new law itself.  The law requires that the would-be immigrant’s investment “is expected to remain invested for not less than 2 years.”  The section of the EB-5 law regarding “removal of conditions”, or when the investor has a permanent green card, was edited to eliminate specific wording that the investor “sustain” the investment.  The removal of conditions section, however, allows for an investor to have an extra year, beyond the initial two-year period of conditional residency, to prove job-creation only if they keep their capital invested.

USCIS Interpretation


It seems that USCIS interpreted these two provisions to require just two years of active investing.  USCIS went further to require that the initial investment remain in the initial project until sufficient jobs have been created.  However, the new law also provides for “redeployment” if an initial investment is repaid before an investor is qualified to be repaid.

Remain Invested or Redeployment


A requirement to redeploy capital is illogical if the initial investment must satisfy the minimum sustainment period and job-creation requirements.  The ability to withdraw capital after just two years seems illogical if the law allows an extra year to prove job-creation only if that capital remains invested for longer.  When the RIA is read in its entirety, the new USCIS guidance does not seem to hold up.

Investment Timeline Defined


The question of when the two-year investing timeline starts is also unanswered.  The USCIS guidance indicates that the start date is when the full amount of the investment is “made available to the job-creating entity.” Is this when the EB-5 money is spent? When the loan is closed, but not yet funded?  Can the EB-5 funds be deposited and not used by the job-creating entity?  How does bridge financing affect this calculation? These are all unanswered questions.

Structuring EB-5


In conclusion, EB-5 project sponsors must structure the EB-5 instrument responsibly, and EB-5 investors should not just rush into a deal that promises money back in two years. For now, it seems safest to maintain the EB-5 investment in the initial project for at least two years after the full amount of the EB-5 funds have been transferred to the JCE/borrower. Investors should stay informed of ongoing developments about the sustainment period, as this issue is sure to come up, again, in courts or USCIS policy in the future.  More importantly, no matter what may or may not have changed in the rules, EB-5 investors must evaluate the financial and immigration risks of potential investments thoroughly.

To learn more about the EB-5 Visa program and Peachtree’s EB-5 offerings, fill out our contact form.