US EB5 – Can unsecured loans be used as investment capital?


Giving a historic decision on US EB-5 Visa Program, D.C. Circuit Court three-judge panel ruled that EB-5 investors can use unsecured loans as their Investment Capital for I-526 applications.

This is a significant verdict on US Immigration as it will streamline the investment process as well as create more opportunities for the foreign investors and entrepreneurs from all around the world to invest and obtain US Green Card under EB-5 Program.

For many years, United States Citizenship and Immigration Services (USCIS) has only allowed financing the investment through investor’s asset value.

USCIS has interpreted those proceeds as debt and has been rejecting the EB-5 applications of those who demonstrate unsecured loans in their source of funds.

In its appeal, USCIS pondered that allowing the unsecured loans as investment capital can create options for the third parties to buy Green Cards.

However, the panel completely rejected the petition and said that there is no need to have a secured loan to file an I-526 application.

By supporting the investors, Circuit Judge Gregory G. Katsas stated that:”Cash is fungible, and it passes from buyer to seller without imposing on the seller any of the buyer’s obligations to his own creditors. The buyer’s source of cash whether paycheck, gift, or loan, makes no difference.”

The court further declared that the proposed project/ regional centre will be able to use the investment capital, even if the investor becomes defaulters on his loan.

As per the new decision, US EB-5 investment program will now authorize the unsecured and secured loans towards the investment requirement, which will help the applicants to have financial independence to borrow loans for their investment amount.

US EB-5 Visa Investment Opportunities

US EB-5 Program offers an exclusive category of immigration Visa that offers foreign High Net worth investors a chance to obtain a coveted piece of American life while stimulating the US economy through job creation.

The program enables Investors with their spouse and unmarried children under the age of 21 to obtain US Green Card, which allow them the right to permanently live, work and study anywhere in the United States.

In order to qualify, foreign investors must meet specific USCIS requirements of investing a minimum of $1.8 MILLION, OR $900,000 in a Regional Center and create at least 10 new jobs.

Eligibility Criteria

  • Investment: Invest $ 900,000 in a government approved Regional Center
  • Source of funds: Source of funds should be legal
  • Age: Must be at least 21 years old
  • Experience: No prior business experience required
  • Education: No minimum education requirement

Benefits of Investing Under EB-5 Program

  • One of the fastest ways to obtain permanent residency in the US
  • Become eligible for U.S. citizenship after 5 years of achieving permanent resident status.
  • No employment restrictions on as EB-5 green card holders can work in any field at anywhere in the United States
  • No need to involve or operate in day to day management of their EB-5 investment
  • Children can get access to public elementary, middle, and high schools along with economical in-state tuition at public colleges and universities.

WWICS – A Trusted Leader in EB-5 Investments

WWICS – World’s Largest Immigration Groups, with offices all around the globe & more than 27 years of extensive experience in the field of Immigration, provides comprehensive Resettlement Solutions to investors & entrepreneurs.

WWICS’s attorneys and other professionals specialize in providing due diligence services that will equip potential investors with the information needed to assess the viability and feasibility of investing under EB 5 program, as well as the likelihood that the business will pass USCIS scrutiny.

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