How can I qualify as an EB-5 investor on a business loan in addition to the minimum investment as liquid asset?

Question

I and my wife jointly have saved roughly $950K (savings + cash out refinancing + stocks) and we are willing to invest these funds in a business franchise which requires roughly $5 million USD for setup. So the plan is to invest $950k from our pocket and take a business loan to open this business. This business will also create and sustain more than 10 full-time jobs, and we have proper source of funds record for the $950k we currently possess. Having said this, are we eligible to apply for a green card under the EB-5 visa category, in a targeted employment area? We are wondering if the business loan that we are taking to establish the business, which is not secured by our personal assets, makes us ineligible for an EB-5 application.

Daniel A Zeft · Answer

There are detailed rules which determine whether an EB-5 investment is made in a Targeted Employment Area. You do not present sufficient facts to determine this issue. You have a sufficient amount of capital which is from your personal funds to make an EB-5 investment in a Targeted Employment Area. The additional funds from the business loan do not disqualify you as an EB-5 investor. Overall, this is an involved situation. You need a consultation appointment with an immigration attorney who can give you legal advice concerning this involved situation.

Stephen Berman · Answer

In my opinion, you cannot do it based on a loan.

Lynne Feldman · Answer

The business loan can be secured by a business, but not the business you are investing in for EB-5 purposes.

Dennis Tristani · Answer

There is no issue in obtaining financing to help fund and operate your business. This is very common for direct investments where the investment of the EB-5 investor is part of the initial funding of the enterprise, which could include other equity investors or debt financing (such as a bank loan for construction). A separate loan to help finance/build your business does not have to be secured against your personal assets. All additional financing should be properly documented to confirm the relevant entity that is providing the financing.

Bernard P Wolfsdorf · Answer

If you can clearly document the source of funds for the minimum amount needed to qualify, it should not matter that you have additional loans. The issue is how will you enter and how will you run the business because processing takes a few years. You need to look at a nonimmigrant visa strategy first unless you plan to hire a manager and wait abroad.

Michael A Harris, Esq · Answer

A business loan would not by itself make an EB-5 investor ineligible. If an EB-5 investor is using the cash proceeds from a loan secured by the assets of the EB-5 business to make their qualifying investment, then that would be impermissible. It does not sound like you are doing that. To evaluate the rest of your plans, you will need to speak to an immigration specialist.

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How can I qualify as an EB-5 investor on a business loan in addition to the minimum investment as liquid asset?

Answers

Daniel A Zeft

Stephen Berman

Lynne Feldman

Dennis Tristani

Bernard P Wolfsdorf

Michael A Harris, Esq