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How can a loan be used to make an EB-5 investment?

I have a loan sanctioned by a U.S. bank for $10 million and the given collateral is the EB-5 project/business I will be investing into. I will be making a 20 percent down payment to acquire the loan. Will the funds from this loan be acceptable to use for my EB-5 investment? What documents will I need to provide to prove my source of funds?

Answers

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    Answered on

    You can use loaned or gifted funds as part of your personal EB-5 project.

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    Answered on

    No. A loan secured by the EB-5 PROJECT/BUSINESS is not acceptable. Your loan may be secured by other of your property, but not the EB-5 project.

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    Answered on

    Because the collateral under the loan structure is the EB-5 business, this will not work for EB-5 purposes and your case will be denied. The loan must be secured by your personal assets owned by you, not the business/project you are investing into.

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    John J Downey

    Answered on

    You may have a problem. Under the statute, you must submit evidence of a loan "which is secured by assets of the Petitioner, other than those of the new commercial enterprise." You should seek the advice of an experienced EB-5 attorney to review the project before you commit your funds.

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    Answered on

    Usually, a personal asset is used to secure a loan that will be used for an EB-5 investment. The investment funds must be personal funds.

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    Answered on

    USCIS has recently changed their policy on what kind of "indebtedness" is acceptable. They have issued many Notices of Intent to Deny I-526 petitions when the loan was not secured by the assets the investor owns. Also, the assets of the immigrant investor must not include assets of the company in which the immigrant is investing. In your scenario, because the collateral of the loan you are obtaining is the EB-5 business, this will not acceptable.

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    Answered on

    Your loan must be secured by personal assets, not your interest in the EB-5 company. The documentation to prove source of funds is very particular to each case. You should consult an immigration attorney.

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    Answered on

    A loan secured by the commercial enterprise that is the subject of the EB-5 case WILL NOT BE ALLOWED.

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