If an EB-5 investor has invested money in an escrow account and their I-526 petition is declined, must the money be returned to the investor? If so, how quickly must it be returned? If the I-526 has been approved and the money invested, are there any situations in which the investor can get his money back other than through the usual selling or refinancing?
That depends on the project or regional center and their procedures, and is more of a business matter than an immigration matter. It is advisable to work with a corporate attorney or CPA to review the business and financial aspects of an EB-5 offering, and coordinate with them for the immigration aspects.
The terms and conditions should be listed in the escrow agreement. Most EB-5 escrow agreements call for the funds to be returned to the investor if the I-526 petition is denied, and for the funds to be released to the EB-5 project if the I-526 petition is approved. Once the money has been released to the project for use in job creating activities, it is unlikely that the investor can get his or her money back unless and until the condition has been removed AND there is market for his or her interest.
This will depend on the terms of the offering documents an investor has signed with a regional center project or with a new commercial enterprise in a direct EB-5 investment setting. These documents should be reviewed to answer these questions.
The short answer is yes, the money has to be returned should your I-526 fail. However, when and how is contingent on many factors, and the primary controlling document that will dictate the terms will be the PPM and subscription agreement. Thus, make sure that you read it carefully and ensure that you understand the terms.
Each project works out their own terms so it is most important that you and your attorney read the documents carefully. Many of the more established project refund the majority of the investment if the I-526 is denied, minus the administrative fee.
The security offering documents that the investor signs will determine under what conditions the initial investment funds will be returned to the investor. Usually if the I-526 is denied, then the USCIS has agreed that the investment funds, depending on the offering agreement, will be returned to the investor. While after the I-526 is approved and the conditional permanent residency is approved, then the investment funds are at 100 percent at risk.
The answer to your question will depend on the terms of the agreements you signed (ex. escrow agreement). If you have concerns, I would encourage you to meet with an immigration attorney familiar with EB-5 petitions to review your documents. Similarly, your ability to withdraw funds will be governed by the terms of your agreement with the regional center or business.
It depends on the agreement. Many of the regional centers hold the money in escrow until the I-526 is approved. If the I-526 is denied, and the escrow agreement states that the money will be returned to the investor, you should be able to get your investment back, but you need to look at your agreements.
Getting your investment back after an I-526 denial depends on which project you invested in. You should have a qualified EB-5 attorney review the offering/investment documents to determine if you can receive a refund. Often, getting your money back depends on why your I-526 petition was denied in the first place. If it was denied because of the project documents you have a better chance. If it was denied because you could not prove a lawful source of funds, it may be more difficult for you.
