United States Citizenship and Immigration Services (USCIS) requires that all invested EB-5 funds remain at risk until the end of the investor’s conditional permanent residence period. Therefore, there is no guarantee that the investor’s I-526E petition will be approved or that they will ultimately receive their permanent resident status through the EB-5 program. Further, the investor is not always guaranteed to get back their invested funds if their I-526E petition is denied. In light of the risk associated with EB-5 investment projects, investors should carry out careful research on the projects and regional centers that will be in charge of their investments.
If the investor’s I-526E petition is denied, they may or may not get back their investment. In the case of direct investments, the investor will likely be unable to recuperate their investment; much, if not all, of the invested funds will have been spent by the time the I-526E petition is evaluated by USCIS.
In contrast, the investor may be able to get back the invested funds if the project in question is sponsored by a regional center. Depending on the subscription agreement made between the investor and the regional center, the regional center may offer to pay back the investment if the investor’s Form I-526E is denied. Typically, the regional center would only refund the invested amount, not the administrative fees (such as attorney’s fees and filing fees). EB5AN, however, does include these administrative fees in the refund guarantee for certain projects.
Investors should keep in mind that they will likely be unable to receive such a refund if USCIS designates them as inadmissible. They could be rendered inadmissible due to a variety of medical issues or criminal convictions. In most cases, investors will be unable to recuperate their funds if their I-829 petition is denied, though some exceptions can occur.
