Can I use a bank loan for my EB-5 investment? - EB5Investors.com

Can I use a bank loan for my EB-5 investment?

Can I use a bank loan for my EB-5 investment? If so, what documentation should I compile to avoid any source of funds issues?

Answers

Jimena G Cabrera

Jimena G Cabrera

Immigration Attorneys
Answered on

Yes, you may use a bank loan for the EB-5 investment, but the loan must be secured by real estate. Also, the loan cannot be secured by the investment.

Charles Foster

Charles Foster

Immigration Attorneys
Answered on

Yes, under certain circumstances you may use a bank loan for your EB-5 investment provided it is fully collateralized. The documents you would need to provide would be the loan documents and evidence of your collateral and perhaps its source of funds.

BoBi Ahn

BoBi Ahn

Immigration Attorneys
Answered on

Yes, as long as it is a direct loan to you (where you are personally liable for default. Not your company, etc.), you can provide the loan document for your source funds documentation.

Dale Schwartz

Dale Schwartz

Immigration Attorneys
Answered on

Yes, but the bank loan must be 100% collateralized by the property of the EB-5 investor.

Jinhee Wilde

Jinhee Wilde

Immigration Attorneys
Answered on

The bank loan must be collateralized with the assets you own. The source of funds tracking will start with how the asset being used was obtained to show its legal source. This is a complicated question that you should discuss in detail with your EB-5 lawyer.

Parisa Karaahmet

Parisa Karaahmet

Immigration Attorneys
Answered on

Yes, you can use the proceeds of a bank loan. However, please know you must provide a source of funds explanation/report for the collateral used to secure the loan.

Rebecca Singh

Rebecca Singh

Immigration Attorneys
Answered on

Yes, but you need security/collateral against the loan. You must submit documents to evidence the bank loan with terms and the security against the loan; evidence of your security/collateral and the fair market value; and the initial source of funds for your collateral, along with bank statements for the path of funds. It is best to speak to an attorney.

Fredrick W Voigtmann

Fredrick W Voigtmann

Immigration Attorneys
Answered on

You can certainly use a bank loan as the source of funds for your EB-5 capital. The investor must be personally and primarily liable for the loan and the collateral must be in your name. You will need to show the written loan agreement is properly executed and secured so it will be enforceable in your home country. You should also be prepared to document the full source of funds for your purchase of the collateral in the first place. Consulting with an experienced EB-5 attorney is necessary to complete this process properly.

Bernard P Wolfsdorf

Bernard P Wolfsdorf

Immigration Attorneys
Answered on

Yes, you can use a bank loan, but it must be 100% collateralized with your own assets. You need to provide how you earned or acquired the assets used for collateralization.

Vaughan de Kirby

Vaughan de Kirby

Immigration Attorneys
Answered on

Yes, you can indeed use a bank loan secured by your property. In addition to the bank loan documents, you will need to document how you were able to buy the property you are using as security for the bank loan. Your investment immigration attorney should be able to help you identify the needed documentation.

Austin Kim

Austin Kim

Immigration Attorneys
Answered on

Yes, you may use a bank loan for an EB-5 investment if the bank loan is made using assets you own. For example, if you own a home that has a value (equity) of $500,000, you can mortgage your home to get the bank loan in the amount of $500,000. To properly document the source of funds, you will need the following: (1) source of funds documents to show how you purchased the home. (2) property registry or deed showing you are the owner of the home, (3) an appraisal report showing the value of your home, (4) mortgage documents and (5) loan proceeds transferring from the lender to your account.

Julia Roussinova

Julia Roussinova

Immigration Attorneys
Answered on

You may use loan proceeds from an accredited lending institution for EB-5 capital. Your loan must be secured by the assets you personally own (collateral) equal or higher in value to the loaned funds.

Natalia Polukhtin

Natalia Polukhtin

Immigration Attorneys
Answered on

A loan is generally a permissible source of funds. However, there are multiple limitations on the use of the loan proceeds. The most important one is that a loan cannot be secured by the assets of the EB-5 enterprise. In this case, USCIS will not count the loan funds toward the investment capital.

A Olusanjo Omoniyi

A Olusanjo Omoniyi

Immigration Attorneys
Answered on

Yes, you can use a bank loan for an EB-5 investment. Such a loan must be thoroughly documented and in compliance with the laws of the country where the loan is obtained with information such as a basis for the loan, collateral, when the payment is due, etc.

Ian E Scott

Ian E Scott

Immigration Attorneys
Answered on

Yes, but the loan must be secured by personal property. You will need all the details of the loan transaction (e.g. loan agreement), all documents related to the transfer and details on the collateral. The collateral must also be at least equal to the value of the loan.

Mitch Wexler

Mitch Wexler

Immigration Attorneys
Answered on

You can certainly use a bank loan to fund your EB5 investment. However, the loan must be secured by your personal assets and the Source of Funds exercise must be performed on those personal assets.

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