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Does the U.S. maintain any restrictions on repatriating EB-5 funds at the end of the term?

Are there limits on repatriating EB-5 funds at the end of the term? For instance, if the EB-5 Regional Center project fails to meet I-829 criteria or some issue manifests during the 5 year term making residency in the U.S. impractical, are there any restrictions on withdrawing capital from the U.S.?

Answers

  • Avatar

    Shahzad Q Qadri

    RC Creator
    Answered on

    As it stands now, there are no issues repatriating the funds at the end of the term of investment. However, there may be restrictions depending on the country where you are repatriating the funds. You may want to check with OFAC for more detailed information.

  • Avatar

    Salvatore Picataggio

    Immigration Attorney
    Answered on

    Failing to maintain the investment, even if entirely the fault of the EB-5 Regional Center or Project, would make the investor ineligible. Ideally, the regional center would have a refund mechanism in place in such an event, allowing the investor to reinvest into another project. Unfortunately, starting over is the only option.

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    Lana Kurilova-Rich

    Immigration Attorney
    Answered on

    No. As long as you can get your money out of the company or the regional center where you invested, you can take that money home. The key is getting it back from the regional center. This money is just like any other investment you would make - subject to the same business risks. So if the business fails or under-performs, it may be impossible for you to recover all or some of your investment. But if you do recover it, it is your money and you can do what you want with it, including taking it out of the US.

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    Margo Chernysheva

    Immigration Attorney
    Answered on

    No, as long as you can get it out of he project invested into. This is at will investment and hence, you can pull it any time just know that your visa will be negative effected by doing so.

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    Ed Beshara

    Immigration Attorney
    Answered on

    There can be no redemption agreements for the return of the principal amount or any portion of the EB-5 funds originally invested.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    No; there are no U.S. immigration laws or regulations restricting the withdrawal of capital at the conclusion of the investment.

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    To the best of my knowledge the U.S. doesn''t have a problem but most projects are unlikely to refund the money after the I-526 has been approved. If they agree to, that may violate the redemption provisions and immigration won''t approve the case.

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    No, any decent regional center should be able to return the investment funds if you fail to obtain the I-829. However, this will depend on case-by-case basis and what the business/contractual documentation states, which you should have known from subscription agreement, etc. when you funded. Most regional centers are fairly clear on returning the investment minus the syndication/administration fee if I-526 is denied but not clear on what they will do for the investor if I-829 is denied. This point also should have been asked when you were considering the investment.

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    Cory A Richards

    Immigration Attorney
    Answered on

    According to the May 30th Policy Memorandum, for an investment to qualify under EB-5 it must be placed "at risk". For the capital to be "at risk" there must be a risk of loss and a chance for gain. According to the Matter of Izummi, if the immigrant investor is guaranteed the return of a portion of his or her investment, or is guaranteed a rate of return on a portion of his or her investment, then that portion of the capital is not at risk. On that note, and specifically stated in the May 30 Policy Memo, a promise to return any portion of the immigrant investor''s minimum required capital negates the required element of risk. Thus, if the agreement between the new commercial enterprise and immigrant investor, such as a limited partnership agreement or operating agreement, provides that the investor may demand return of or redeem some portion of capital after obtaining conditional lawful permanent resident status (i.e., following approval of the investor''s Form I-526 and subsequent visa issuance or, in the case of adjustment, approval of the investor''s Form I-485), that portion of capital is not at risk.

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