Is there a ‘rescission’ clause if USCIS denies the I-526?

In most cases, there is no standard or automatic clause that ‘rescinds’ the investment terms if USCIS denies the I-526. This is because two distinct matters are at play in EB-5: the immigration review of the petition and the commercial agreement governing the investment.

The I-526 approval evaluates compliance with immigration criteria, while the investment contract is entered into between the investor and the project sponsor. Therefore, what happens to the capital in the event of a denial, including any potential return of funds or rescission, depends on the specific provisions of the contract signed by the parties.

Some projects address adverse scenarios in dedicated clauses; others may not guarantee the return of funds. It is therefore essential to read the contract carefully and obtain specialized legal and financial counsel, in addition to following USCIS official guidance, to understand the risks and obligations involved in each case.

About the author

Victoria Harper

Editor-in-Chief

Meet the author

As a journalist and lead editor at Visto n’ Visa, Victoria helps ensure that immigration topics are covered in a clear, trustworthy, and easy-to-understand way. Her focus is on delivering useful, human, and relevant content for people exploring new paths abroad.