Questions and Answers: Escrow Accounts

Question: When a Regional Center (RC) uses an escrow account for investors’ investments, can the money be held in escrow until the investor’s conditional immigrant visa is issued or only until the I-526 is approved?

Response: USCIS does not require the use of escrow agreements. However, such agreements are permissible if the terms of the escrow agreement comports with 8 CFR 204.6(j)(2), which requires that the I-526 petition must be accompanied by evidence that the required amount of capital has been placed at risk (actual commitment of the required amount of capital). Acceptable escrow agreements may allow for the withholding of funds in escrow until the investor’s EB-5 visa is issued if the agreement is otherwise EB-5 compliant.

Setting up an escrow account is a standard way for RCs to receive investors’ funds. Please confirm that for cases which are not affiliated with an RC that putting funds in an escrow account is permissible if all funds are committed to be released to the new commercial enterprise upon the approval of the individual’s I-526.

Response: USCIS does not require the use of escrow agreements. However, such agreements are permissible if the terms of the escrow agreement comports with 8 CFR 204.6(j)(2), which requires that the I-526 petition must be accompanied by evidence that the required amount of capital has been placed at risk.

Taken from USCIS Quarterly EB-5 Stakeholders Meeting on June 30, 2011