Questions and Answers > EB-5 Investments

What happens to my EB-5 funds if I do not submit an RFE response for I-526?

I received a Request for Evidence notice for my I-526 application. After some research and talking to the EB-5 regional center, I lost confidence in the project. I plan not to submit the RFE notice and let USCIS deny my case so that I can get my funds back. Does it work this way, or is there anything else I should be aware of?

Answers

• Bernard P Wolfsdorf

  Immigration Attorney

  Answered on May 1, 2023

  You need to see the terms of your subscription agreement. Many projects will return funds if the I-526 is denied.

• Daniel A Zeft

  Immigration Attorney

  Answered on March 27, 2023

  The signed agreement between the regional center and the investor will have provisions which determine when the investor can get their funds back.

• Lynne Feldman

  Immigration Attorney

  Answered on March 24, 2023

  You need to review the project documents you signed with a business attorney to advise you on your rights under those documents to retrieve your funds.

• Dennis Tristani

  Immigration Attorney

  Answered on March 23, 2023

  The terms of the return of capital in the event of an I-526 denial or withdrawal should be detailed in the subscription agreement. I recommend contacting your immigration attorney and Regional Center to make sure you understand the terms of the agreement and the timing of your repayment.

• Ying Lu

  Immigration Attorney

  Answered on March 23, 2023

  You need to read the terms of your investment documents such as your PPM to determine if there is any restriction about exit. Many investment documents require the investor exhaust all means, such as appeal after receiving the I-526 denial in order to receive the return of the capital.

• Karen-Lee Pollak

  Immigration Attorney

  Answered on March 22, 2023

  You will need to review the terms of the contract and the schedule for how funds are returned to you if a case is denied. You should still get the money back if the project does not fail but will have to wait until the term of the loan expires. Ask the regional center when funds would be returned, it all depends on the terms of the project.

• Belma Demirovic Chinchoy

  Immigration Attorney

  Answered on March 22, 2023

  Read the contracts you signed with the RC. This issue is most definitely covered in them.

• Stephen Berman

  Immigration Attorney

  Answered on March 22, 2023

  It depends on your agreement with the investment group.

• Mitch Wexler

  Immigration Attorney

  Answered on March 22, 2023

  The petition will be denied and it then will be between you and the Regional Center. This occurrence was probably addressed in the material they sent you. Most RCs have refund provisions upon a denial but the mechanisms and timeframes can vary wildly. You should reach out to the RC asap.

• Robert V Cornish Jr

  Securities Attorney

  Answered on March 22, 2023

  Your offering agreement may not permit the return of the funds as you may anticipate. It is important for you to have a securities attorney review those documents so that your options can be more clearly explored, including but not limited to perhaps agreeing to a buyout of your investment at a discount.