Question:
Can I take a loan to make an EB-5 investment? If I borrow money from an American friend (who can prove that her funds are from lawful sources) or from a foreign company of which I own 20%, can I use the loan proceeds for my EB-5 investment? Also, if I am not in the U.S., do I still need to show $200,000 annual income for the past 3 years or $1 million in assets?
Answers:
Whether you are in the U.S. or not in the U.S. you may still have to prove that you are an accredited investor. The U.S. immigration attorney will be able to review the circumstances of your EB-5 investment and advise as to whether it is necessary to prove that you are an accredited investor. You may receive a loan in the investment amount and use these loaned funds to show you have made a personal investment in and EB-5 PROJECT. You are correct that the person loaning you the money will have to prove their authentication of these loaned funds which will then be subsequently personally invested by you. The USCIS will still need to know by what financial means and resources you will be in a position to repay the loan over a reasonable period of time.
There are many approvable methods of obtaining the legal and lawful source of funds, and loans could be one of them. We recommend retaining qualified EB-5 counsel to authenticate the source and transfer of funds, as our law firm does. Accredited investor status is required for all purchases of securities in a US business, regardless of where the investment comes from, and our law firm associates with experiences securities attorneys to assist with those matters.