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What types of loans can be used for an EB-5 investment?

I am interested in a gas station valued at $1.25 million. I want to use a SBA loan to finance the business, and would use my own funds of $300,000 as a down payment for the loan amount. Would I still qualify for an EB-5 investor visa if I am using an SBA loan to finance the business? What types of loans can be used for EB-5 investment?

Answers

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    John J Downey

    Immigration Attorney
    Answered on

    You must be careful with the loan model. You must be personally responsible for the loan. It cannot be tied to your investment, i.e. the loan being tied to the new corporation.

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    Loans must be secured by personal assets and must be fully collateralized.

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    Julia Roussinova

    Immigration Attorney
    Answered on

    It is questionable whether you would be able to create at least 10 full-time (at least 35 hours a week) permanent jobs with a gas station. The loan must be secured by personal assets of yours (investor's), not the business' in which you would invest. You should consult an experienced EB-5 attorney before you proceed.

  • Avatar

    Salvatore Picataggio

    Immigration Attorney
    Answered on

    For EB-5 investments, loans should be secured by the investor's assets. Please consult with an EB-5 attorney who can assist you with the specifics of your case and source of funds.

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    Please note that EB-5 program is designed for an investor who will invest $1 million, or $500,000 if the business is located within a Targeted Employment Area, and create 10+ full-time, permanent jobs. Thus, you investing $300,000 and the rest of the funding coming from a loan may not be sufficient. Further, the loan must be secured by your assets as collateral, and such assets should be proven as obtained by legal means, and the loan payment should be made within 2-4 years to show that you have committed the full investment amount before the I-829 can be approved. The value of the EB-5 business itself should not be part of the assets used as collateral for securing the loan. As to the SBA loan, a non-citizen applicant must pledge collateral located within the United States that is sufficient to pay the loan in full at any time during the term of the loan. Thus, I question whether you, a non-U.S. citizen, may be able to obtain such a loan.

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    Ian E Scott

    Immigration Attorney
    Answered on

    In order for a loan to be used for an EB-5 investment, the loan must be secured against personal property that is worth more than the amount of the loan. In the past (years ago), USCIS did not require loans to be secured, but now they must be.

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    Robert Cornish

    Securities Attorney
    Answered on

    You are creating 10 full-time jobs with a gas station? You really need to speak to counsel on how to handle this.

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