In recent years, EB-5 investors have increasingly turned to secured loans (backed by collateral) as part of their investment strategy to meet USCIS requirements and reduce scrutiny. The key is ensuring loans are supported and documented, sourced from lawful funds, and that investors can prove their ability to repay.
Additionally, some EB-5 professionals recommend that investors use structured loans (tailored to their specific needs) rather than relying solely on gifted funds or savings to minimize delays in processing, further inquiries, or potential denials.
EB-5 attorneys and consultants are increasingly advising investors to take a more cautious and structured approach when using loans for their EB-5 investments, says Walter Gindin, General Counsel of CANAM Enterprises.
“That means making sure the loan is fully documented, personally guaranteed by the investor, and not tied to any assets from the EB-5 project itself,” he said. “There’s a strong push to avoid anything that might look like a shortcut — like informal personal loans with no paperwork or loans secured by the project. The goal is to meet USCIS expectations up front and reduce the risk of delays or denials.”
Why could USCIS question EB-5 applications involving loans?
USCIS may reject applications if loans do not meet the “at-risk” criteria, lack sufficient documentation, or compromise the investor’s capacity to repay. Unsecured or unclear loans can lead to scrutiny.
Gindin points out that these rejections or further requests for evidence often stem from issues with the loan that undermine the fundamental “at-risk” requirement of the EB-5 program.
“For instance, if the loan is secured by assets of the EB-5 project or the investor is not personally responsible for repayment, USCIS may determine that the funds don’t qualify as the investor’s own capital,” he says. “Another common problem is insufficient documentation showing the lawful source of the loaned funds—either in terms of where the lender’s money came from or how the funds were transferred to the investment. Additionally, loans with guaranteed repayment terms or arrangements that resemble buy-backs or guaranteed redemptions can raise compliance concerns.”
EB-5 attorney Marjan Kasra of Lawmaks adds that USCIS may deny petitions where loan proceeds are commingled with regional center funds or if ownership is not separate.
“If it appears that similar owners are effectively running both companies, USCIS may determine that the funds are not independent, not properly at risk, and therefore not qualifying for EB-5 purposes,” she says.
Kasra also notes that USCIS has issued Requests for Evidence (RFE) in cases where the entity providing the loan and the regional center shared common ownership. “Investors should exercise caution and ensure the lending entity is not effectively the same as the regional center to avoid this problem.”
Ensuring EB-5 loans comply with USCIS standards
Investors must document their loans, show lawful sources, and accept responsibility for repayment. Transparency and legitimacy are crucial.
Gindin emphasizes that capital securing the loan must be the investor’s own and fully at risk. “That means the investor must be personally responsible for repaying the loan, and the loan cannot be secured by any assets tied to the EB-5 project or the job-creating business.”
Secondly, he says, the loan documents must show the lawful source and how the money was obtained and transferred. “If those conditions are met—personal liability, lawful source of funds, and a clear flow of money into the investment—then the loan structure is generally considered compliant with USCIS policy,” he says.
Kasra cautions investors to closely examine loans offered from regional centers to check the structure of the loan and the ownership of the lending entity. “It is important to confirm that the lender is independent of the regional center and that its funds are not commingled or otherwise tied to the project or regional center capital,” she said. “This includes checking whether the owners of the lending entity and the regional center are the same or closely related.”
USCIS does not specify limits on loan amounts in EB-5 investments. However, professionals recommend keeping unsecured loans to less than 50% of the EB-5 investment to minimize scrutiny.
“USCIS doesn’t impose a specific limit on how much of the investment can come from loan proceeds,” says Gindin. “Ultimately, the focus is less on the percentage and more on whether the loan is lawfully sourced, the investor is personally liable for repayment, the loan has key terms (such as a maturity date, rate, collateral (if applicable), and the full investment amount is placed at risk in accordance with EB-5 program requirements.”
According to Kasra, an industry best practice is to ensure that 100% of the funds used in the EB-5 investment and any administrative fees are lawfully sourced. “Every dollar invested must be traceable to a lawful source and clearly documented.”
Secured vs unsecured EB-5 loans
For EB-5 investors, the key difference between secured and unsecured loans is whether the loan is backed by collateral.
Secured loans use assets like property or cash as collateral, offering more security to lenders and typically raising fewer concerns with USCIS about the lawful source of funds. Unsecured loans, on the other hand, do not require collateral and rely on the borrower’s creditworthiness, but they often face more scrutiny from USCIS. Investors must provide strong documentation to prove the legitimacy of unsecured loans and show that they are personally responsible for repayment, regardless of the success of the EB-5 investment.
While unsecured loans can be scrutinized, they are viable with proper documentation.
“What matters most is showing that the capital truly belongs to the investor, that it’s at risk, and that the unsecured loan meets the same evidentiary standards as any other lawful source of funds,” Gindin adds. “With the right documentation and a credible lender, an unsecured loan can be a viable option.”
Kasra concludes: “Unsecured loans have been recognized as an acceptable source of EB-5 investment funds. However, the investor still needs to demonstrate their ability to repay the loan using lawfully earned funds. Investors must be fully ready to document the source and path of funds, regardless of whether the loan is secured or unsecured.”
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