What Are the EB-5 Policy Updates for Loan Proceeds?

1.5 minute read

"International entrepreneurs interested in obtaining US permanent residence through the EB-5 Investor Program must meet the minimum investment and job creation requirements. Recently, the US Citizenship and Immigration Services (USCIS) introduced a new policy that will allow international entrepreneurs to secure investments through loans. According to this new policy, all loan proceeds will be viewed as cash rather than indebtedness."

Written by My Visa Source Team
Published on: Aug 18, 2021

International entrepreneurs interested in obtaining US permanent residence through the EB-5 Investor Program must meet the minimum investment and job creation requirements. Recently, the US Citizenship and Immigration Services (USCIS) introduced a new policy that will allow international entrepreneurs to secure investments through loans. According to this new policy, all loan proceeds will be viewed as cash rather than indebtedness.

How Was This Policy Changed for the EB-5 Visa Program?

Recently, a federal court upheld the interpretation that the plain language of the regulation does not support the loan proceeds to be viewed as indebtedness. The USCIS then issued this policy to recognize the court ruling. Following this change, the USCIS will now verify that all loan proceeds are lawfully acquired and the capital amount is placed at a risk to generate profits in return.

Interested applicants of the EB-5 Investor Program are authorized to secure investment using different sources including loans to meet the minimum investment requirements. The principal applicant is personally liable for the repayment of the loan. It must be secured using the personal assets of the applicant.

What Is the EB-5 Investment Visa?

The EB-5 Investment Visa is for international entrepreneurs and investors who want to obtain US permanent residence by making a direct investment or through a regional center designated by the USCIS. A federal court recently vacated the existing EB-5 Modernization Final Rule returning the minimum investment level for the EB-5 Program to its previous levels.

This recent ruling reverted the minimum investment requirement through direct investment to $1 million from $1.8 million. For regional centers, the minimum investment level was reverted to $500,000 from $900,000.

Regional centers are set up in Targeted Employment Areas (TEA) which are either rural areas with a population of 20,000 or more, or areas with an unemployment rate that is 150% over the national average.