Short answer: some EB-5 projects keep investors’ money in an escrow account until the I-526E is approved or set conditions are met. Whether — and how fast — you are refunded after a denial depends entirely on the escrow and subscription terms.
Common escrow arrangements
| Arrangement | Release of funds | If denied |
|---|---|---|
| Release on approval | After I-526E approval | Generally refunded from escrow under the terms |
| Release on filing | After I-526E filing | Funds already in the project; refund depends on the project |
| Staged release | By milestones or conditions | Depends where the funds are at the time |
Questions to ask
- Under what conditions do funds leave escrow?
- What happens on denial, withdrawal or a request for evidence?
- Are any fees deducted on refund, and is the admin fee refundable?
- Which bank holds the escrow, and is it independent?
Why release timing matters
USCIS requires the capital to be at risk and used to create jobs, so many projects release funds after filing. That is normal, but once released, any refund depends on the project itself.
Our advice
Treat escrow and refund terms as seriously as returns, and get them in writing. Read more: common I-526E RFEs and how to vet an EB-5 project.
General information only, not legal advice.