EB5AN Partners with Customer Bank to Protect EB-5 Investors’ Funds in Escrow

2023/03/21 11:27am

EB5AN, a leading EB-5 investment fund manager, regional center operator, and consultancy, announced today that it has partnered with Customers Bank for its EB-5 investors’ escrow arrangements. This collaboration offers EB5AN investors a secure and reliable solution to safeguard their investments during today's volatile market environment.

Recent bank failures, such as those of Silicon Valley Bank and Signature Bank, have left many EB-5 investors worried about the security of their funds in escrow. The Federal Deposit Insurance Corporation (FDIC) insures depositors' funds in banks up to $250,000, providing some level of protection. However, the EB-5 investment threshold is $800,000, raising questions about how to ensure the safety of these funds.

To address this issue, Customers Bank offers coverage for deposits exceeding the FDIC maximum of $250,000 per customer through its Insured Cash Sweep® (ICS) program. The ICS program distributes cash across multiple institutions, ensuring every dollar of the deposit account balance is insured while still offering depositors the convenience of a single account at Customers Bank.

The ICS Network comprises hundreds of well-capitalized, FDIC-insured institutions across the United States. EB5AN investors benefit from a diversified and secure escrow arrangement by spreading funds across multiple banks. This strategy significantly reduces the risk associated with having all funds concentrated in a single institution, particularly during periods of financial instability.

Moreover, the ICS program simplifies account management for EB5AN investors. Despite the dispersion of funds across multiple banks, investors continue to receive a single, consolidated statement from Customers Bank. This streamlined approach allows investors to easily track their funds in escrow and maintain a clear understanding of their account status.

EB5AN’s investors can invest confidently, knowing that their capital will be insured in escrow and protected by the United States Federal Reserve and the additional security provided by the ICS program.

EB5AN managing partner Sam Silverman notes, “Customers Bank is an experienced EB-5 escrow agent and one of the most distinguished financial institutions in the United States. With Customers’ expertise and the added safety of the ICS program, our investors can rest assured that their funds will remain safe in escrow prior to deployment to an EB-5 project.”

Customers Bank, a leading commercial bank based in Pennsylvania, boasts over $20 billion in assets and has earned a reputation as one of the nation's premier financial institutions. Established in 2009, the bank is known for its exceptional customer service, innovative technology, and commitment to supporting community development. It has received numerous awards and accolades, including being named one of "America’s Best Banks" by Forbes in 2022 and receiving a five-star rating from Bauer Financial, a leading independent bank rating firm.

EB5AN remains steadfast in its commitment to protecting investors' funds and providing exceptional service. By partnering with a trusted and experienced institution like Customers Bank and utilizing the ICS program, EB5AN offers a secure and reliable solution for investors navigating the challenges of today's economic environment.

As the EB-5 investment landscape evolves, EB5AN is dedicated to ensuring the security and success of your EB-5 journey. Investing in an EB-5 project is a significant decision that requires careful consideration and due diligence, and EB5AN understands the importance of safeguarding your financial and immigration outcomes.

EB5AN's partnership with Customers Bank and the adoption of the ICS program demonstrates the company's dedication to addressing investor concerns and providing a secure and stable environment for EB-5 investments.