If an EB-5 investor’s I-829 is denied or for some other reason immigration becomes impractical, what happens to the investor’s original funds? Are there any restrictions on taking the EB-5 investment out of the country once it is free to be released?
The restrictions are contingent upon the disclosures in the PPM, so please make sure you review the PPM closely before committing the capital. The capital is at risk, so if the project fails there is a possibility that you may lose some or all of your investment. However, once you have recouped the funds, there are no restrictions on the repatriation of funds.
More information is needed. Generally, if you invest directly in a private commercial enterprise, you will need to look at the business offering documents to understand how the return of capital will be structured. In a regional center project investment, you will need to look at the offering documents of the regional center project to understand the return of capital when your I-829 is approved. Your investment must be fully at risk for you to be eligible to enjoy the benefits of EB-5 program. Once your capital is repaid to you upon completion of the investment term, there should not be any restrictions on taking the funds out of country.
The personal investment funds have to be at risk.Therefore, if the EB-5 business fails then the personal investment finds may be lost. However, in an EB-5 regional center project the funds may be loaned to the job-creating entity. If the loan is not paid back, then the collateral of the project can be sold to repay the loan to the entity which loaned the investment funds of the EB-5 investor. Once the investor receives funds back after the I-829 is approved, then these funds an be transferred to accounts outside the United States.
The general rule is that you should look at the terms of investment agreement which the investor signed. If properly done, the agreement should have spelled out how the funds should be returned. Otherwise, you may need an attorney to help out. There are no restrictions on taking the EB-5 investment fund out of the country once it is released.
Depends on what agreements you have with the developer of the project.
In case of failure of the petition, the investor liquidates the invested funds and removes them from the country without restriction.
If you can get your money back from a regional center or any other business, which is dependent on the limited partnership and any other documents you may have signed, the money is yours and you should not encounter any restrictions on sending money out of the country, aside from any tax reporting you may have to do for capital gains, etc. or anti-terrorism reporting that may be required by the bank.
In your best case scenario, the business will find a way to return your investment and you can even start over with another regional center if you wish; this has happened. In your worst case, the money has been invested, the business fails or cannot immediately liquidate anything to refund your money, and you may never get the money back. The investment is in no way guaranteed by the U.S. government and it is "at risk," meaning that, just like any investment into any business venture, there is always a chance that the venture will fail and the investment will be lost. You have to be able and willing to take this risk.
Refunds of your capital contribution will depend on the project and/or regional center into which you invest, but some do allow for refunds if there is a denial and nothing further can be done (like appeals or refiling). Once you get that refund, removing money from the United States may have some tax implications, but you would need to discuss that with someone familiar with international tax rules.
