Preeti Sinha

How are EB-5 funds usually returned after I-829 approval?

When conducting due diligence, what should I look for in terms of a regional center project’s exit strategy? After I commit to a project, is it allowed to change its exit strategy?


Philip Cohen
September 29, 2015 11:57 AM  Philip Cohen

What to look for:
There should be a reasonable expectation of the ability to raise funds
Ideally, there is some kind of back up exit in place (not that common buy nice if you can find it), such as a party who is committed to refinancing the deal after 5 years based on certain conditions, or a party who is willing to buy out the project under certain conditions).

The terms of exit, including variables, should be outlined clearly in the PPM. This should not change once you have agreed and signed the subscription agreement.

Raymond Lahoud
April 03, 2016 06:48 PM  Raymond Lahoud

You must look at the terms of the fund to determine the manner of exit. It could be through various different means - a refinance, a buyout, etc.

Gregory Finkelson
October 12, 2018 03:04 PM  Gregory Finkelson

It depends on whether you invest in Regional Center Project, Direct Project or your Own Project.
If you invest in your own project, you can control 100% of your money as well as your return.
If you invest in Regional Center or Direct project, you must review the agreement, especially the terms in writing when you sign with them.

Marko Issever
December 30, 2018 12:10 AM  Marko Issever

It really differs from transaction to transaction. We advise our clients to read the Private Placement Memorandum very carefully or work with an EB-5 professional to explain them how the EB-5 funds are returned after I-829 approval in their specific situation.


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