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Questions & Answers

What portion of an EB-5 investment can be loan proceeds?

Suppose I buy a property worth $1 million and then take out a loan of $500,000 against it. It is okay if I then invest the loan proceeds for EB-5 purposes in a regional center? Can the entire EB-5 investment amount come from loan proceeds?

Answers

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    Xiaosheng Huang

    Immigration Attorney
    Answered on

    Yes, the EB-5 investment amount can come from the loan proceeds only. However, USCIS will assess the value of your property, when you bought the property, and where the house-purchasing amount was from.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    As long as the loan is secured by personal assets (like a property you own!), 100 percent of the EB-5 investment can come from loan proceeds.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    The entire amount of investment can come from loan proceeds as long as the collateral is well-documented and you prove the lawful source of funds to purchase the collateral. Also, you must be personally and primarily liable for the loan.

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    A Olusanjo Omoniyi

    Immigration Attorney
    Answered on

    There is nothing wrong in using a loan to fund an EB-5 application. However, an applicant must still prove that the source(s) of his/her fund/loan is legal. Be ready to provide such proof. Prior to going forward, consult an EB-5 attorney on this matter.

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    Barbara Suri

    Immigration Attorney
    Answered on

    USCIS states that proceeds from a loan may qualify as capital of the investor provided that: (1) the investor is personally and primarily liable for the loan and (2) the value of the collateralized asset actually owned by the investor meets or exceeds the value of the loan.

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    John J Downey

    Immigration Attorney
    Answered on

    As long as you are personally responsible for the loan, you may invest the proceeds of the loan.

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    Yes, you can use loan proceeds under certain circumstances. Most importantly, you must show how you earned the money to buy the property.

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    Vaughan de Kirby

    Immigration Attorney
    Answered on

    100 percent of the investment capital from the EB-5 investor can be a loan secured by assets that are owned by the individual investor.

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