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Questions & Answers

When are EB-5 funds transferred into the escrow account and released?

As I understand, it takes more than 12-18 months for the USCIS to process an I-526 application. Does the applicant need to transfer the $500,000 before filing and wait for the USCIS to approve or disapprove the application? What options are there for releasing the funds early?

Answers

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    The release of funds from escrow (the funds would be deposited into escrow prior to I-526 filing) will be determined by the signed escrow agreement. If there is a mutual agreement of the parties to release the funds from escrow sooner than agreed upon in the agreement, then a new escrow agreement must be executed and a copy should be filed with the USCIS to supplement the record.

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    Julia Roussinova

    Immigration Attorney
    Answered on

    If you invest in a regional center project, you will generally be required to transfer the funds prior to being accepted into the project as a limited partner. The release of funds as well as distributions on investment are governed by the offering documents of the project, such as a limited partnership agreement. Terms of projects differ and the funds may either be released into the investment upon your admission as a limited partner into the project or held in an escrow account until a date certain or approval of I-526 petition. Generally, you would not be able to return the principal investment until I-829 approval or later depending on the terms of the investment (for example a six year term of a loan or 10 year term of a partnership).

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    Ed Beshara

    Immigration Attorney
    Answered on

    EB-5 regulations and policies allow the personal funds to be already invested (directly transferred into the new commercial enterprise from the personal account of the investor), or be in the process of investing (personal investment funds transferred into an escrow account and then can be released at the time of approval of the I-526 petition, or at the time of filing the I-526 petition or at the time of acceptance of the subscription agreement by the new commercial enterprise).

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    John J Downey

    Immigration Attorney
    Answered on

    It is best to transfer the funds to an escrow in the United States at the time of application. Early release is up to the investor and developer of the project via an agreement.

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    Karen-Lee Pollak

    Immigration Attorney
    Answered on

    The funds must be deposited before the I-526 is filed. It is currently taking 13.5 months for approval. Early release of funds and return of funds is governed by the contract you sign with the regional center.

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    Denyse Sabagh

    Immigration Attorney
    Answered on

    The funds need to be transferred to the escrow account to prove that the investment has been made. USCIS will not approve the I-526 without proof that the funds have been transferred. The timing of releasing funds is governed by the documents. Sometimes they may say that if the first I-526 for the project is approved, the escrow funds for all of the investors may be released.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    Generally, the investor''s funds are placed in escrow before filing the I-526. When those funds are released from escrow can depend on your needs and how you want the process structured.

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    Lynne Feldman

    Immigration Attorney
    Answered on

    Typically the funds are invested in the project prior to filing the I-526, with an escrow agreement indicating that all but a small administrative fee would be returned to the investor if the I-526 is not approved.

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    BoBi Ahn

    Immigration Attorney
    Answered on

    The funds must be invested (or actively committed to invest) and "at risk" at the time of filing the EB-5 Immigrant Investor Petition. Which means, the funds should be placed in escrow at the time of filing the petition.

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