How do direct EB-5 investors get their money back?

There are different ways to structure an exit strategy. Generally, a buy-sell agreement or an operating agreement for the entity will define how an investor's equity interest in the business will be disposed of, such as, for example, a sale of an interest to the business at fair market value.

Similar to a regional center project, the investor can sell their interest in the new commercial enterprise at fair market value.

The EB-5 investor is an equity owner of the business in a direct EB-5 project. The business can be structured where other members of the project, perhaps the manager, has the option to buy back the EB-5 investor's shares, at fair market value, after I-829 approval.

There are many different methods. For example, if it was a real estate project that created condos, the investor could be given the option of having the initial investment amount returned to them or have an option to receive ownership of a condo unit which might be worth more. The method of return is set up in the initial documentation and can be any legal method.

The answer is the same whether the investment is direct or through a regional center. How and whether you get your investment back depends on the terms of the investment offering and the financial ability of the new commercial enterprise to make distributions to investors.

Usually sale of the business, but there are numerous options to structure the deal such that investors have a viable exit strategy.