Using Loans for EB-5
Leverage borrowed capital to meet the $800,000 threshold while satisfying strict USCIS 'Source of Funds' requirements for your EB-5 Visa.
Secured Loans
Asset-Backed Financing
Traditional financing using personal property (real estate, stocks) as collateral. This is the 'gold standard' for USCIS approval.
Unsecured Loans
The Zhang v. USCIS Standard
Following the Zhang decision, loans no longer require personal collateral. Credit-based loans are now fully permissible for the EB-5 Visa.
Private Loans
Friends & Family
Borrowing from a private individual. These are heavily scrutinized by USCIS for 'disguised gifts' or 'money laundering'.
1. Lender Vetting
USCIS requires the lender to prove where they got the $800k. If the lender's funds are 'tainted', your EB-5 petition fails.
2. Execution of Note
A formal promissory note must be signed. It must specify terms, interest, and the 'at-risk' nature of the investment.
3. Path of Funds
You must trace every bank transfer from the lender's account to yours, then direct to the EB-5 project escrow.
Critical Pitfall
The "Disguised Gift" Issue
If you borrow from a friend but have no intention of paying it back, USCIS may reclassify the loan as a gift. If you don't then provide the "Gift Source of Funds," the case will be denied.
Legal Protection
Unsecured Loan Validity
Since the 2020 Zhang decision, the US Court of Appeals ruled that cash proceeds from an unsecured loan are "cash" belonging to the investor, not a "debt" of the project.