I invested $900,000 in a TEA after the EB-5 Modernization Rule increased the investment amount. I just heard that the rule has been vacated by the courts. What happens with my investment now? Can I get a refund for $400,000?
The investment amount is regulated by the documents you signed, and while I have not seen your documents, I doubt they provide for a refund of the $400,000 because of the invalidation of the regulations.
Unlikely, unfortunately. I did not notice that the decision would apply retroactively. Reauthorization or new legislation would be your best bet to clarifying what is going on.
Unlikely because at the time you invested, that was the proper amount. You can check with the project but you will likely need to sue to get the difference returned.
A refund, at this time, is not advisable even if it is possible (which is highly unlikely).
If you already invested in a regional center project, you should check with the regional center. You probably cannot get a refund because the contracts you signed at the time will control what happens.
You should read your PPM, but generally, the project has no obligation to return money to you paid in excess of the investment amount. Unless your project amends its PPM and is in a position to return the excess funds, your investment (especially if it is a loan) will remain the same.
Some Regional Centers are offering to refund $400,000 if the case is won on appeal. Everyone is waiting to see. No center will take just $500,000 yet.
