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What is a typical EB-5 investment lock-in period?

For how many years is the EB-5 investment money typically locked? I know it depends on the project performance, but how common is it for investors to get returns on investments? If the project performs well, then do they pay investors a share of the profit from the project?

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    Dennis Tristani

    Immigration Attorney
    Answered on

    This is entirely dependent on the project you invest in. Most projects lend or invest EB-5 funds with a developer that is creating jobs - the loan or investment contract will be for a specific time period. You will not be eligible to receive a return of your funds until the regional center receives repayment of its loan or investment. In terms of return on investment, this is also dependent on the specific project.

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    Lynne Feldman

    Immigration Attorney
    Answered on

    Varies considerably by Regional Center but many return monies or offer to after the I-829s for that part of the project are all approved.

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    Phuong Le

    Immigration Attorney
    Answered on

    This is a loaded question, but ultimately it comes down to what type of investment did you make. It is all equity but if you chose an EB-5 loan, your return is very much capped (which you agreed to in exchange for theoretically a lower risk investment). If your investment was preferred equity, then you would get a higher return but it still would not be profit sharing. Unless you are true equity (which almost no investor wants), you are not going to get profit sharing. Lock-in period? Generally, it should be 5+ years or else it does not make much financial sense for the people raising EB-5 money.