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What should the repayment schedule be for a loan used for EB-5 investment?

Recently I was sanctioned for a loan against my commercial property of about $700,000 with a repayment period of about 15 years. I want to use these funds for an EB-5 investment. My main concern is that someone told me the repayment schedule should not be more than two years in case the EB-5 funds come from a loan. Is this true? Why would the loan repayment schedule need to be less than two years when used for EB-5?

Answers

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    Ed Beshara

    Immigration Attorney
    Answered on

    You can use loan proceeds as part of your personal investment. Just as long as you can show that you have the financial means to pay back the loan over a period of time which can be longer than two years.

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    Julia Roussinova

    Immigration Attorney
    Answered on

    Sounds like a standard arrangement. There is likely more in the documents to the effect that the borrower has the option to extend repayment of the loan for one additional year. I recommend that you review the offering documents for the project you intend to invest in with an experienced EB-5 immigration attorney before you actually invest.

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    I think that someone is confusing fully investing in an EB-5 business within two years to your loan term. If you are obtaining the loan secured by your assets, you are actually getting a full EB-5 amount to invest, which satisfies the capital being invested in the EB-5 business. How quickly you must repay back your loan is based on how quickly you wish to pay that loan back and what your bank would allow and does not have anything to do with EB-5 program. If, on the other hand, your investment is a promissory note to the EB-5 business, then you must pay that note within two years to satisfy that you had invested the required capital into the EB-5 business.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    You need to invest personal funds. If you do not actually have those funds, USCIS may not count them as your personal funds.

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