I am part of many EB-5 chat groups, and the conversation in many of them is about why loans from regional centers are challenging, and that banks are safer. I am just starting to enter the world of the EB-5 visa, and I would like to know why this difference. Is an application rejected because the loan comes from a regional center?
Answers
Bernard P Wolfsdorf
EB-5 Immigration attorneysThe law says must be "good faith" loan. A loan without collateral is a joke.
Lynne Feldman
EB-5 Immigration attorneysNot rejected automatically – the details will matter for each financial transaction and proving your lawful source of funds for repayment.
Yuliya Veremiyenko-Campos
EB-5 Immigration attorneysBank loans are better for EB-5 because USCIS is currently pushing back on the loans from the companies affiliated with the Regional Center.
Renata Duarte
EB-5 Immigration attorneysA bank loan is usually safer because a bank is a true, independent third-party lender with documented underwriting and collateral. A loan from a regional center or from someone tied to the EB-5 project often raises red flags about whether the investor is really investing their own money. This can trigger RFEs, NOIDs, and sometimes denials. USCIS does not ban these loans, but they scrutinize them heavily.
Tony W. Wong
EB-5 Immigration attorneysEB-5 regulations prohibit using the share of EB-5 investment as collateral to loan for EB-5 funds. If you loan from your regional center, it may cause an RFE asking more documents about the loan from the regional center. A loan from a bank can avoid this issue.
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