IN THIS GUIDE · Borrowed capital, and what the loan is allowed to be secured against
Start with the EB-5 eligibility and application overview
Borrowed money can be the investor's capital, on terms
Hypothetical example: an Asphodel-Norwood couple in their forties own a tool-and-die business they do not want to sell, and propose to fund an EB-5 investment by borrowing against their own commercial property and equipment. Loan proceeds may constitute qualifying capital where the investor is personally and primarily liable for the debt and the assets of the new commercial enterprise are not used to secure it. The lender's security documents, not the borrower's intention, determine whether that test is met.
Show the lending as clearly as the spending
Two chains must be documented. The first establishes that the borrowed funds are lawfully obtained: the loan agreement, the lender's identity and its regulated status, the security instruments, the appraisal supporting the collateral, and evidence of the investor's ownership of the collateral. The second traces the money from advance to the enterprise: the advance into a named account, any conversion, and the transfer to the project. Where the collateral is a business the investor owns, provide financial statements and evidence that the borrower personally, not the company, carries the obligation.
Ten jobs, and which structure counts them
The enterprise must create at least ten full-time positions for qualifying United States workers, who do not include the investor or immediate family. In a regional centre investment, indirect and induced jobs may be counted under the applicable methodology, and the investor's role can be that of a limited partner with the rights that position carries. In a direct investment the jobs generally have to be actual employees of the enterprise. Decide which structure suits the family before selecting a project, because the two produce different obligations.
Two conditional years and the removal filing
Approval leads to conditional permanent residence for the investor, the spouse and unmarried children under twenty-one. Form I-829 is filed near the end of the two-year period with evidence that the capital remained invested and the jobs were created or will be within a reasonable time. Loan repayments falling due during that window are the investor's own obligation and must not be met by withdrawing the invested capital, which is a scheduling problem worth modelling before borrowing.
Separate policy participation from operating control
A private placement memorandum sets out risk factors and normally states plainly that projections are not guarantees; the subscription agreement records what the investor actually agreed to; the operating or partnership agreement contains the distribution provisions that determine who is paid and in what order. EB-5 requires participation through day-to-day managerial control or policy formulation; it does not universally require every investor to run daily operations, and a marketing label does not establish that the participation requirement is met. The reduced amount is the reason most offerings describe themselves as targeted-employment-area projects, and that description is a legal designation resting on unemployment or rural criteria rather than a sales point. A narrow exception permits a buyback option exercisable solely at the enterprise’s discretion; exercising it requires withdrawal of the petition unless the applicable sustainment and other requirements have been fulfilled.
Sources reviewed 2026-09-07. This guide covers a preparation focus; it is not an individual eligibility assessment.