An escrow structure in EB-5 investments refers to a secure financial arrangement where investor funds are held by a third-party escrow agent before being released to the project. This mechanism is designed to protect investors by ensuring funds are only deployed once specific conditions are met, such as USCIS receipt of the I-526E petition or project financing milestones.
Escrow agreements outline strict rules regarding fund release, refund conditions, and investor protections. While not required by USCIS, escrow structures are widely used in EB-5 projects to enhance transparency and reduce risk for investors.