I am a lender who is giving a loan to an LLC. The use of funds is to pay back a loan my client borrowed from another EB-5 project they had. They recorded the mortgage and filed tax returns for all the EB-5 investors. Are there any problems with such a transaction?
Answers
A Olusanjo Omoniyi
Find an EB-5 Visa Lawyer: Immigration AttorneyYes, it is acceptable within the banking laws. However, unless carefully structured, the funding of the initial project may be adversely affected going forward. The emerging result may create a problem, as it appears there are co-mingling of funds, as this is associated with lending. Consult financial experts for further analysis and guidance, because an EB-5 investment entity is not supposed to be operated as an investment bank.
Charles Foster
Find an EB-5 Visa Lawyer: Immigration AttorneyAs a lender and not the EB-5 petitioner, I would not think you would have any immigration issues with the transaction as I understand it, nor is it clear whether your client is the EB-5 petitioner, so more information would be required to fully answer all aspects of your question. But I would advise you to see an attorney, preferably one that is board certified in immigration law with significant experience in structuring EB-5 projects.
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