The expiration of the U.S. EB-5 program is drawing near, at which point the $500,000 investment required for a family to immigrate to the U.S. is highly likely to increase to $800,000 or even higher. Many prospective applicants wish to apply for immigration before the policy expires, yet they are concerned about the risks associated with U.S. investment immigration, fearing that if the investment fails and the green card is not obtained, their $500,000 will be lost.
In fact, all costs for applicants currently processing U.S. EB-5 investment immigration can be divided into three categories. The most critical is the $500,000 investment capital; one should prioritize projects with clear escrow agreements to ensure greater security for the funds. For the $500,000 investment, funds are typically released only after the I-526 petition is approved. Whether the investment capital can be refunded depends on the release conditions of the investment project selected by the applicant.
Generally speaking, in most projects, investors transfer funds directly to the project entity's account, meaning the project entity can receive the $500,000 investment without waiting for the investor's I-526 (the visa for obtaining a conditional green card) to be approved. However, high-quality investment projects usually have escrow agreements in place, stipulating that funds will only be released to the project entity after the investor's I-526 is approved, providing an extra layer of protection for the investor. If the I-526 is denied, a refund can be obtained immediately.
Additionally, some projects set up capital reserve accounts where the project entity reserves a portion of funds to provide refunds to investors should their I-526 be denied. When selecting a project, it is essential for investors to clarify the project's fund release conditions and the procedures for obtaining a refund if the I-526 is denied after the funds have been released.
Project issuance fees are generally not fully refundable, so pay close attention when selecting a project. Typically, EB-5 projects charge tens of thousands of dollars in issuance fees, and the specific fee and refund terms vary for each project. Most issuance fees are used for project operations and financing expenses and are not necessarily fully refundable. However, some projects clearly state that if an investor's I-526 is denied, the issuance fee will be refunded. It is recommended that investors fully understand these terms when choosing a project.
Other expenses, such as application fees and document fees, are mostly non-refundable. Furthermore, other costs for EB-5 projects include legal fees, USCIS filing fees, agency service fees, translation fees, and notarization fees. Like project issuance fees, some projects may promise that legal fees are refundable if the I-526 is denied, but terms vary by project, and investors must consult clearly before making a choice. The USCIS filing fee refers to the $1,500 application fee, which is generally non-refundable. Agency service fees vary by immigration firm in terms of standards and refund policies. Translation and notarization fees are generally non-refundable.
USCIS does not mandate a specific repayment timeline; however, according to immigration law, at the time of I-829 (permanent green card) adjudication, the EB-5 investor's capital must remain "at risk." Simply put, the investment must still be deployed in the project. Therefore, regarding a specific investor's capital, repayment cannot occur before the I-829 is approved. EB-5 project agreements usually set a repayment term. For loan-based projects, the loan term is typically 5 years. This 5-year period is not a regulation set by USCIS (U.S. Citizenship and Immigration Services), but rather a convention within the EB-5 industry. This timeframe is generally based on the fact that I-526 approval takes over a year, followed by another six months to a year to obtain a visa, enter the U.S., and receive a green card, and then about 2 years to file the I-829 petition; by the time the I-829 is approved, approximately 4-5 years have passed.
Therefore, the loan term for debt-based projects, which is the repayment period for investors, is usually 5 years. In summary, for EB-5 loan projects (debt), once the 5-year loan term is reached, as long as an investor's I-829 has been approved, repayment can be made without waiting for all investors in the project to have their I-829s approved. This is also unrelated to USCIS regulations. In practice, due to different project exit mechanisms (repayment mechanisms), repayment might be made based on operating revenue, in which case investors are repaid individually as they are approved. Alternatively, it could be through project refinancing, in which case a batch of approved clients or all approved clients might be repaid together.
