When must EB-5 funds be put into the escrow account? - EB5Investors.com

When must EB-5 funds be put into the escrow account?

If my source of funds are a gift, can it come directly from my source to the escrow account, or does it need to be deposited in my account first and then from my account to the escrow? When in the process are the funds required to be put into the escrow account?

Answers

Xiaosheng Huang

Xiaosheng Huang

Immigration Attorneys
Answered on

It will be better from your own account to the escrow account. When the fund is ready, you can wire it to the escrow account.

Salvatore Picataggio

Salvatore Picataggio

Immigration Attorneys
Answered on

A lawful EB-5 investment must be a personal investment of funds, even if the source of those funds is a loan, gift, etc. USCIS has accepted funds to be "invested or in the process of investing" once they are deposited in escrow. Since you need to show USCIS you have invested or are in the process of investing, you should get that done before the I-526 is filed. Most EB-5 projects and regional centers will require that anyway.

James Yang

James Yang

Immigration Attorneys
Answered on

If a new commercial enterprise has an escrow account set up to receive EB-5 investments, the funds must be remitted into that escrow account before I-526 filing. EB-5 investment capital received as a gift is recommended to be received by the gift recipient (EB-5 petitioner) first before being transferred to the escrow account, so that personal ownership and control of the capital is established.

Fredrick W Voigtmann

Fredrick W Voigtmann

Immigration Attorneys
Answered on

It is better if you receive the funds first, but not absolutely required. The funds must be fully at risk (placed into an irrevocable escrow with an automatic release provision) before the I-526 petition is submitted.

Barbara Suri

Barbara Suri

Immigration Attorneys
Answered on

The funds are usually required to be placed in escrow upon your entry into the EB-5 program. One important thing is that you must be able to track the source of the funds, to show that it was gifted to you, and is indeed YOUR funds.

Charles Foster

Charles Foster

Immigration Attorneys
Answered on

EB-5 funds must be put into an escrow account only if the project/developer has agreed in your documentation that funds will be put into an escrow account. Such documents would provide the conditions upon which the escrow funds would be released in order to be invested directly into the project in question. There is no legal requirement per se that there be an escrow account, although for some period of time that was the normal practice. Today, given the long delays in obtaining adjudications of the I-526 petitions, many projects have not specifically provided that there will be an escrow account or even when they do, typically, funds may be released after approval of either the related exemplar or one or more I-526 petitions.

Bernard P Wolfsdorf

Bernard P Wolfsdorf

Immigration Attorneys
Answered on

Best to gift to you, then transfer to escrow.

A Olusanjo Omoniyi

A Olusanjo Omoniyi

Immigration Attorneys
Answered on

The investment money coming from a gift can be handed to the escrow account either through the investor himself or deposited directly into the account. The entire investment fund must be deposited into an escrow account prior to applying for the two-year conditional green card. Generally, the gift must be from a legal source.

Jinhee Wilde

Jinhee Wilde

Immigration Attorneys
Answered on

As most of the regional center escrow accounts normally are identified with the investor's name, your donor could directly wire to that. However, in order to show the trail of the gift from your donor to you and then when you invested into the EB-5, I normally prefer that the funds be deposited into your account before wiring to the EB-5 investment escrow. This is more precise and clean.

Raymond Lahoud

Raymond Lahoud

Immigration Attorneys
Answered on

The funds can go directly into escrow. You must be able to trace the funds back, however, even if gifted. Also, the funds are put in escrow prior to the application process, when the agreements are signed.

John J Downey

John J Downey

Immigration Attorneys
Answered on

It needs to go to you in your account. When the funds are to be deposited in the escrow is usually covered in documents provided by the EB-5 entity. They should be in an escrow account at the time of filing your petition.

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