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Can an EB-5 project use investment through partial financing?

If we have 50% cash in bank, is it ok to procure the other 50% required investment through bank loan?

Answers

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    Reza Rahbaran

    Immigration Attorney
    Answered on

    Yes, it can be through a bank loan as long as the loan is secured through your personal assets and not secured by the EB-5 project.

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    Lynne Feldman

    Immigration Attorney
    Answered on

    As long as the money from the bank is not secured by the project itself but by your other assets then that is fine.

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    Yes, as long as you are the borrower and responsible for repaying that loan.

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    Hendrick Pretorius

    Immigration Attorney
    Answered on

    Loans as an EB-5 source of funds is a very fact specific issue as there are some loan types that are strictly prohibited. This should be discussed in more detail with an attorney.

  • Avatar

    Rachel Lew

    Immigration Attorney
    Answered on

    Yes, you can have cash infusions into a business, incurring debt on behalf of a business, securing loans for a business by risking your personal assets. To secure the bank loan, there should be some personal assets such as real property and promissory note executed stating the terms of repayment and the lender''s legal recourse if there is a default on your payment. Generally speaking, the loans should be paid in full before your removal of condition petition. In other words, you must show that your personal capital by way of cash and/or loan is at risk.

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    Stephen Berman

    Immigration Attorney
    Answered on

    No, it cannot be borrowed money.

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    Boyd Campbell

    Immigration Attorney
    Answered on

    Yes, as long as the bank loan is secured by your personal assets.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    Maybe, but it will be difficult. Any additional financing cannot be secured by the assets of the new commercial enterprise. It must be secured by the investor''s personal assets and the collateral must be valued at fair market value.

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    Shahzad Q Qadri

    RC Creator
    Answered on

    Yes provided that you secure the loan through some personal assets.

  • Avatar

    BoBi Ahn

    Immigration Attorney
    Answered on

    Yes. As long as the funds are clearly traceable as legally obtained (i.e., bank loans, salary, savings, etc), these funds can be used for EB-5 Investment. Hope the information helps.

  • Avatar

    Rohit Kapuria

    Immigration Attorney
    Answered on

    If I understand your question correctly, you are asking if EB-5 funds can be invested in a project in which the developer will also use bank financing. This scenario is certainly acceptable. The capital stack can certainly contain various financing sources. The key is to ensure that the developer also has some "skin in the game" as reflected through some equity investment.

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