If EB-5 investments were successfully transferred to a regional center and their initial project fell through, are those funds allowed to be used on a different project? Would they return to the investor and would they have to start the whole application process again?
It may be best to have the investment returned to the investor and re-apply under a new regional center project. The funds may be transferred to another project, but a new I-526 petition may need to be filed even if the projects are within the same regional center. Please note that each I-526 petition is tailored to a particular project.
It depends on what stage your application is in. If you have not yet filed your I-526, you should receive your money back and you can reinvest it. If your I-526 is pending, you would need to wait until your money is back to you, re-invest, and then file amendment to your application with new project information and everything elsebasically re-file.
I would recommend that the failed EB-5 project return the funds back to the investor, and then the investor can send the funds to the new project''s escrow. These two steps are important, and can be easily documented then the banking records presented to the USCIS to clearly show the "path of funds" and ownership by the EB-5 investor. Of course, the EB-5 applicant will need to file a new I-526 petition with USCIS and start the processing time all over from the beginning.
If the funds can be returned to the investor, the process starts over again.
If the original project fails, the funds may be transferred to a different project. However, a new I-526 petition would have to be filed, even if the projects were within the same regional center.
It depends upon the agreements between the regional center project and the investor, but as long as the source and path of the funds was documented properly, the funds should be able to be used for a new project. Of course, a new investment in a new project would require a new I-526 filing with a new priority date, so the petition would go to the back of the queue in terms of processing time.
There is no easy transfer of money and petition from one project to another. Because each petition is based on a particular project not to a regional center, you will have to start the process all over again.
Was the case filed with USCIS? If no, then the funds can be transferred. If yes, you can withdraw that application and then transfer funds and start again.
That would depend on the arrangements you have with the regional center. We have seen some move funds to another project, and some refund the investment. Please note that all investments must be "at risk" to qualify. Retaining an EB-5 lawyer, like one of the attorneys at our law firm, to assist you can help make these arrangements possible.
In answer to your question you will need to retain the services of an experienced EB-5 attorney. The timing of the collapse of the EB-5 project is important as to whether the investment funds have either been committed or not committed to the collapsed EB-5 project. If there is a collapse of the EB-5 project before the investment funds have been committed then the EB-5 project may return funds to the foreign national investor who in turn may reinvest their personal investment funds into another EB-5 project. This will result in the refiling of a new I-526 petition for a new EB-5 project.
