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How can I use U.S. financial institutions when applying for EB-5?

Is it possible to use American financial institutions when applying for EB-5? For example, can an investor borrow money from a U.S. bank or open up a credit line for a business?

Answers

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    Reza Rahbaran

    Immigration Attorney
    Answered on

    It is possible to borrow the funds for EB-5 purposes. However, the loan must be secured by the personal assets of the petitioner. It may not be secured by the EB-5 project.

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    Shahzad Q Qadri

    RC Creator
    Answered on

    No, generally not. You cannot use loans to apply for EB-5, as you need to in most cases be an accredited investor. In rare cases, it has been used where your personal property other than your personal residence has been collateralized.

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    A Olusanjo Omoniyi

    Immigration Attorney
    Answered on

    Yes, you can certainly borrow from a U.S. financial institution to fund your EB-5 visa if you can make the arrangement. In addition, you can open up a credit line for a business. However, within the EB-5 context certain rules apply. For instance, if you borrow money for your EB-5 visa, the collateral for such a loan cannot be the very EB-5 project. In essence, your EB-5 investment cannot be the collateral for the loan you obtain to pay for the same EB-5. Get a good set of advice from your EB-5 attorney before you sign any agreement either with the U.S. financial institution or for any EB-5 project.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    The funds have to be personal investment funds. Many investors will refinance their homes as a source of funds. Many use their salaries. With the right EB-5 counsel, you can authenticate your funds for a successful I-526 petition.

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    Rohit Kapuria

    Immigration Attorney
    Answered on

    May be possible, however, you would be precluded from collateralizing the assets of your new EB-5 business (more importantly, the new commercial enterprise) for the purposes of the loan.

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    Philip H Teplen

    Immigration Attorney
    Answered on

    You can utilize borrowed funds for EB-5 purposes; however, it has to be on full personal recourse and you need to have sufficient funds to establish that the recourse guarantee is meaningful. I will be happy to have a teleconference with you and can be reached.

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    Lynne Feldman

    Immigration Attorney
    Answered on

    Possibly, if a loan is secured by U.S. assets other than the enterprise in which you are investing in for EB-5.

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    Vaughan de Kirby

    Immigration Attorney
    Answered on

    An EB-5 investment may be borrowed, but it must be secured by assets other than the EB-5 investment.

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    Ed Beshara

    Immigration Attorney
    Answered on

    The investor will have to use their personal funds which can be borrowed from a financial institution for an EB-5 investment. However, the assets of the EB-5 business cannot be used as collateral for the loan amount.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    Yes; borrowed funds can be used for EB-5 investment. Make sure that the loan is not secured by the assets of the new commercial enterprise into which you are investing, and be sure to fully document the terms and conditions of the loan, including your ability to make payments and including the lawful source of funds you used to originally purchase any collateral used to secure the loan. You should have an experienced EB-5 immigration attorney represent you if you choose to go this route.

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