Here’s basic information about making an EB-5 investment using a loan.

When does making an EB-5 investment with a loan fulfill the EB-5 requirements?

The EB-5 Program requires an applicant to invest personal funds. When does using a loan comply? Taking out a loan that complies with the EB-5 Program requires the loan to be secured by personal assets. An example of personal assets that would fulfill the collateral requirement is real estate property. The value of the personal assets must be of equal or higher value than the loan amount to fulfill the requirements.

Are there any additional requirements if the applicant is using a private lender?

If an EB-5 applicant is using a private lender then that lender should be able to demonstrate the lawful source of their funds.

What must an applicant show when it comes to the source of funds?

They should consult with an immigration attorney to learn more about the sources of funds documentation they should collect for their forms. Each case may be unique and require different documentation. An immigration attorney can handle these needs and more.

Can unsecured loans be used?

An unsecured loan would not fulfill the EB-5 Program requirements. The loan must be secured.

Can an investor lose their entire EB-5 investment?

One of the main requirements of the EB-5 Program is that the investment must remain “at-risk”, meaning the investor could potentially lose the entire investment amount.

For more information about making an EB-5 investment using a loan, send us a message.