Funding for the EB-5 investor visa can come from a number of sources, including inheritance, monetary gifts, stocks and bonds, and private or business loans. Many potential EB-5 applicants are unsure as to whether they can take out personal or business loans for their EB-5 investment. When considering the use of a personal or business loan, a potential EB-5 applicant must consider the validity of the lending source and the legality of the funds which they are about to obtain. But that doesn’t mean eligible loans are limited to government-approved banks, financial institutions or other recognized lending institutions. EB-5 loans often come from friends and family.
Regardless of where the loan originates, applicants must provide financial documents that verify that the funds were obtained legally and lawfully. Funds that cannot be traced legally may cause delay or rejection of the EB-5 application.
Of course, investors should be wary of any lending source that seems suspicious. A lender that is not personally known to the investor may not be legitimate if they show:
• Lack of concern with your financial/payment history
• Pressure to commit immediately or without appropriate planning
• No physical address or unprofessional workspace
• Requests for ‘down payment’ funds in order to begin loan transfer
Legitimate private loan agencies or businesses will never rush potential loan applicants and will always do credit or payment history checks before approving any loan requests. If your loan institution does not have a physical address or the conditions of the work area seem unprofessional, this is an immediate clue that the lender may not be legitimate. Many loan scams will request that potential applicants make a down-payment on the loan before any money can be received, which is a sure sign that the lender is not authentic – real loan institutions often charge a fee, but these funds are deducted from the loan and not paid out-of-pocket by the loan applicant.
If your intended loan is from an individual as opposed to a financial institution, ensure that all legal documents detailing the funds are created and verified and that all money received is verifiable. An authorized EB-5 regional center or trusted distributor can advise you on the best methods through which to obtain your EB-5 funding. Click here for more information on the different ways your EB-5 investment funds can be sourced.