If you’re struggling to raise the minimum EB-5 investment amount, you can take an EB-5 visa loan. You can obtain the loan from an individual or an institution, such as a bank or credit union. To qualify for the loan, you must meet certain requirements and comply with specific conditions.
Requirements for EB-5 Visa Loan
The EB-5 Visa program has specific conditions you should meet to qualify for an EB-5 loan. They include:
- You Must Be Guaranteed by Your Investment Assets: The value of your assets should be equal to or more than the loan amount. For example, if a mortgage is one of your assets, it must be registered in the property records of the government.
- Use Your Personal Property to Secure the Loan: You are only allowed to use your personal property as the loan’s collateral. For instance, you cannot use stocks you own in a company to secure a loan.
- You Must Be the Primary Borrower: The loan must be under your name to show that you’re entirely liable to repay the loan.
Loan Borrowing Terms
Loan borrowing terms help you understand the costs and the procedures involved when acquiring the loan. Below are the associated loan terms you should be aware of before the loan application:
- Loan Duration: EB-5 visa loan has a 5-year term
- Interest Rate: Your loan principal is determined by your credit criteria and prevailing market conditions.
- Deposit Amount: This varies depending on the amount of your loan. If you fail to continue with your venture, the deposit is refundable (minus the loan processing fees).
Consult regional EB-5 financial advisors to understand the terms of your immigration investment loan. They can help enlighten you on available and favorable funding options for your business.
Qualifications for a Primary Borrower
You must meet the following qualifications to qualify as a primary borrower for the immigrant investor loan:
- Have a net worth that is more than $900,000
- Before loan application, one must be prepared to apply a minimum of $800,000 for rural and $1,050,000 for urban ventures
- Only invest in the pre-approved EB-5 projects
Also, Read- Your Loan Against Property Application Denied – 8 Reasons
Repayment Terms: EB-5 Investment Amount
EB-5 regulations are designed to make sure that loans are repaid in five years or more to counter the risk associated with earlier payments. Foreign venture financing is less risky when your Form I-829 is approved.
Your repayment terms can be either short or long-term, as described below:
- Short-Term Loans: You must file an I-526 petition that confirms you have a credible investment plan, source of funds, and assets to repay your loan. This grants you and your family the right to live and work in the US without sponsorship for 1-2 years while the project funds are successfully invested. After this, investors can apply for updated, full citizenship.
- Long-Term Loans: These loans are repaid after the approval of your I-526 petition.
Protection Measures for Your Loan Agreements
Your EB-5 Visa loan agreement contains details that protect your investment before you clear your loan. These protective measures help you monitor your operations and restrict you from taking risky actions. These covenants include:
Affirmative Measures
The immigration investments program requires you to accomplish the following activities throughout your operations as you clear the loan:
- Allow EB-5 lenders to go through your project, books, and records
- Inform the lender/s of any business changes or shifts
- Pay taxes on time and in full
- Present any financial accounts that have not been audited
- Have active and legal insurance
- Meet the EB-5 program requirements, including job creation and the minimum EB-5 investment amount ($800,000 to $1,050,000, depending on the project category/qualifications)
Negative Covenants
These measures specify the activities you have approved the lender to engage in throughout your project. They enable you to write a legally binding contract allowing your EB-5 lender to execute any of the listed activities, including:
- Entering into agreements
- Incurring accrued debt
- Making changes to your business plan
- Hiring executive personnel
Get Your Immigration Investment Visa from a Certified EB-5 Regional Center
If you do not have adequate income to meet the minimum EB-5 investment amount, you can apply for an EB-5 visa loan. For a smooth application process, familiarize yourself with the loan application and repayment conditions. A trusted EB-5 regional center has experience dealing with immigration venture loans and programs. They guide you on the options that can help you obtain a loan faster and speed up the approval of your I-526 and I-829 forms.
