EB-5 loans: How to avoid common USCIS application rejections

EB-5 investors often use loans to finance their investment in an EB-5 project when they apply for this investor visa to obtain U.S. residency. To avoid rejection by the United States Citizenship and Immigration Services (USCIS), the loan must be documented, lawfully sourced, and show that the investor is personally responsible for repayment. Both secured and unsecured loans can qualify if they meet the EB-5 program requirements.

Why USCIS May Question EB-5 Loans

The U.S. immigration agency requires EB-5 petitioners to show the source of loan proceeds and how the funds were transferred. Loan documents should include key terms such as maturity date, repayment obligations, interest rate, and collateral if applicable. Repaying the loan must be the investor’s responsibility and it cannot depend on the success of the EB-5 project. The scrutiny applied to every dollar invested through a loan also applies to paying the USCIS administrative fees and every other cost the EB-5 investor incurs when applying for this visa. Everything must come from a lawful source and be traceable.

Documentation and Lawful Source of Funds

Petitioners must document the source of loan proceeds and the transfer of funds into the EB-5 investment. Loan agreements should state maturity date, repayment obligations, interest rate, and any collateral. Repayment must be the investor’s responsibility and cannot depend on the success of the EB-5 project. The same scrutiny applies to administrative fees and other costs—every dollar must be lawful and traceable.

Secured vs. Unsecured EB-5 Loans

Secured loans are backed by collateral such as property or cash. They typically raise fewer questions about the lawful source of funds if the collateral itself is properly documented. Unsecured loans rely on the investor’s creditworthiness and require stronger documentation. USCIS has accepted unsecured loans if the investor demonstrates the lawful source of funds and personal liability for repayment. Unsecured loans are more likely to face requests for evidence but remain viable if all evidentiary standards are met.

Practical Recommendations for EB-5 Investors

EB-5 professionals recommend limiting the use of unsecured loans to less than half of the EB-5 investment to reduce scrutiny. However, USCIS does not set a percentage cap. The focus is on whether the funds are lawfully sourced, the loan is fully documented, and the investor is personally responsible for repayment. Investors should also confirm that the lender is independent from the regional center and that funds are not commingled. Any overlap in ownership between the lender and the regional center can lead to questions about independence and eligibility.

Checklist: Avoiding EB-5 Loan Rejections

□ Document all loan terms, including maturity date, repayment obligations, and interest.

□ Prove the lawful source of loan proceeds and of the lender’s capital.

□ Show a clear, traceable transfer of funds into the EB-5 investment account.

□ Demonstrate the investor’s personal liability for repayment.

□ Do not secure loans with assets of the EB-5 project or job-creating entity.

□ Avoid guaranteed repayment, redemption rights, or buy-back structures.

□ Confirm lender independence from the regional center and avoid commingling.

□ Keep unsecured loan amounts reasonable to reduce USCIS scrutiny.

USCIS accepts loans as a valid EB-5 funding source when they are lawfully sourced, fully documented, and clearly at risk, with the investor personally responsible for repayment. By maintaining transparency, avoiding conflicts of interest, and meeting evidentiary standards, investors can reduce the risk of delays or denials.