What is an Escrow account? How am I protected against losing my money with an escrow account?

For many people who are considering an EB-5 Investment their is concern as to how safe their money will be while waiting for the approval of their I-526 application and acceptance into the EB-5 program.  During this time the Investor’s deposits and funds will be held in an “Escrow Account”.

An Escrow Bank Account is a legal, interest-bearing account established in a chartered bank.  An Escrow account is most commonly used in the sale of real estate, businesses and personal property and is governed under different and more strict rules than a common bank account.

The initial deposit from you (the investor) is placed in an interest-bearing escrow bank account.  When the account is established the assets continue to belong to the investor.  The investor has an agreement with the bank or attorney that requires the assets to be transferred from the escrow account to the EB-5 Project’s bank account upon approval of the Investor’s EB-5 application by the USCIS.