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Escrow is a contractually binding arrangements between EB-5 investors, the EB-5 issuer, and a third-party escrow agent for the management of the investor capital. The agreement will specify that the escrow agent will hold the EB-5 investment capital and disburse it to the job-creating entity (JCE) upon certain agreed-upon conditions or events.

Escrow, while not an EB-5 program requirement, is usually a preferred means of mitigating the risk of fraud or misuse of investor capital and can provide some level of confidence to investors that their capital will be properly managed and used, and that transparency about the use and path of investor capital will be available to all parties involved.

Virtually all escrow agreements are bound to repay the investor capital in the event of a denied investor petition.

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