I-526 or also termed as the conditional Green card is the first stage of the EB-5 filing process. I-526 is the initial form which is filled in order to process the application. However, before the application is filed there are certain requirements that need to be fulfilled.
The investment is made in a new commercial enterprise: Under the requirements investing in a new commercial enterprise is one of the key prerequisites of the I-526 application according to the USCIS. The investors are supposed to invest either $800,000 or $1.05M in an NCE (New Commercial Enterprise) depending on the location of the project. In the case of a regional center EB-5, the investment in an NCE is done by creating a fund where every investor puts in their capital and an LLP or LLC is formed. The fund is given to the project as an EB-5 loan for job creation purposes.
The investor needs to provide complete proof that they have invested the minimum required amount of $800,000 in an NCE and the project/NCE is located in a TEA or $1.05M if the project is not under the targeted employment area (non-TEA). The investor needs to agree to the fact that this investment is a “Investment at risk”
The investor needs to provide complete documentation of the source of funds. The investor needs to prove that the investment amount was legally and lawfully earned over a period of time. The funds maybe from salaries, savings, liquidating moveable or non movable assets etc. The investor needs to show the complete path of the fund leading back to the origin or root of that fund.
In a direct EB-5, the investor is required to participate in the management and the business operations of the newly formed commercial enterprise. Whereas under the Regional Center EB-5, there are certain requirements of the LLP or LLC which are supposed to me met by the investor. The involvement of the investor in the project is a condition for I-526 petition.
The primary requirement of the EB-5 is that investment Direct or regional center, $800,000 or $1.05M need to create 10 full time jobs for US Citizens or Green card holders. For direct investment applications the NCE needs to provide proof of the job creation, note that only Direct jobs are counted whereas in a regional center investment, the project needs to prove the job creation of 10 full time employees. In the RC EB-5 both direct, in-direct and induced jobs are taken into consideration.