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.