In December 2020, a U.S. District Court ruling confirmed that EB-5 investors are allowed to use loans to finance their investments, as long as the investor is personally and primarily liable for the loan. This decision overturned a previous USCIS policy that prohibited the use of loans in EB-5 investments.
So, an EB-5 investor can use loan proceeds to fund their investment, as long as they are personally responsible for the repayment of the loan and the loan is secured by assets that are not related to the EB-5 investment. The investor must also be able to demonstrate the legal source of the loan funds, and the loan must be consistent with the EB-5 program's requirements for "at risk" investment capital.
USCIS requires that the investment capital be "at risk," meaning that it must be the investor's own money and borrowed funds must be expected to be repaid regardless of the success of the investment. The investor must provide evidence that the loan is secured by assets other than the EB-5 investment, and that the source of those assets is lawful.