+1-800-997-1228
Questions & Answers

How can I use my EB-5 investment as collateral for a secured loan?

I am an entrepreneur and having $500,000 held for 5 years is a loss for me. Would I be able to use my EB-5 investment as collateral for a secured loan once I get my green card and move to the United States?

Answers

  • Avatar

    A Olusanjo Omoniyi

    Immigration Attorney
    Answered on

    No, I am afraid you cannot. An EB-5 investment is an at-risk investment and I seriously doubt that any financial institution will accept your investment of $500,000 as a collateral for a host of reasons. First, once the investment is done, there is no guarantee you will get the invested money back. Secondly, based on the exit strategy of most regional centers, you cannot withdraw from the partnership for at least 5 years. Thus, if you cannot withstand the risk of loss associated with EB-5, you should seriously reconsider any further participation in the program. Advisably, consult an EB-5 attorney on this issue before proceeding further.

  • Avatar

    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    Since the invested capital must be fully at risk in order to qualify for EB-5, I am not sure that a lender would consider your EB-5 capital to be sufficient collateral for any loan.

  • Avatar

    Charles Foster

    Immigration Attorney
    Answered on

    You could use your $500,000 EB-5 investment as collateral for a secured loan only if the party making the loan would accept that as part of the conditions under which your $500,000 investment was made. Remember, the $500,000 would have to be at-risk until the time that your EB-5 Investor Petition on Form I-526 is approved, you obtain Conditional Permanent Residency through Adjustment of Status or by obtaining an immigrant visa, and you have filed a petition on Form I-829 to remove conditions and such petition is approved. All of that could take 5 years or longer, during which time the party making the loan would not have access to the aforesaid investment. That being said, all that will depend upon the conditions under which the loan was made and the documents providing the collateral.

  • Avatar

    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    It is highly unlikely that you would be able to use your EB-5 investment, as the money must be spent and put at risk in a job-creating enterprise. I am not sure who would accept this as collateral, and it is unlikely that any regular commercial lender would consider doing so.

  • Avatar

    Robert V Cornish Jr

    Securities Attorney
    Answered on

    My understanding is that your investment cannot be encumbered in this manner while you are awaiting approval for your green card. If the securities in which you invested have value after your EB-5 investment has run its course, it will be up to your lender to determine whether or not they have any value. If making money is your concern, find an EB-5 investment with an equity component with meaningful returns.

Add your comment

Use a Facebook account to add a comment, subject to Facebook's Terms of Service and Privacy Policy. Your Facebook name, photo & other personal information you make public on Facebook will appear with your comment.