Loans and Other Alternative Assets to Qualify for EB‑5

The EB‑5 Immigrant Investor visa program allows foreign nationals to obtain U.S. permanent residency by investing capital and creating at least 10 full‑time American jobs. While most applicants use personal savings or asset sales, many also use alternative funding sources—such as loans, gifts, or inheritance—to meet the investment threshold. This article explores what alternative sources are permissible, how USCIS evaluates them, and how Accura Immigration Firm supports clients in documenting these complex funding structures.

Purpose of Alternative Funding in EB‑5

EB‑5’s policy goal is to attract foreign capital that is at risk and leads to economic benefit in the U.S., including job creation. Although cash investment is common, Congress and USCIS recognize that capital may also come from other lawful sources—as long as it remains at risk and is traceable. This flexibility expands access to the program for individuals without large liquid reserves, provided they can document quality and legitimacy.

Legal Eligibility: What Counts as Capital?

Under current USCIS policy, acceptable forms of capital include:

• Personal loans, either secured or unsecured (Matter of Zhang decision) 

• Secured loans such as home equity, mortgages, or other personal assets

• Unsecured loans, including personal or family loans, if fully documented and lawful 

• Gifts from family or others, supported by affidavits and proof of the donor’s funds

• Inheritance, when shown with legal documentation such as wills or probate records

• Other assets, including real estate, securities, or equipment that the investor owns outright and values at fair market value in USD

Capital must be legally obtained, traceable, and committed to the EB‑5 enterprise. Importantly, the assets of the EB‑5 business itself cannot serve as collateral.

Secured Loans: EB‑5 Financing Backed by Assets

Definition and Requirements

A secured loan is backed by personal property—such as real estate or investments—that acts as collateral. USCIS requires:

• Investor liability: The investor must be personally and primarily liable for repayment.

• Collateral ownership: The investor must own the asset used to secure the loan.

• Perfected interest: The lien or security interest must be legally recorded (e.g., UCC-1 filing or property lien) 

• Valuation proof: Formal appraisal or documentation showing the collateral sufficiently covers the loan amount.

Common Examples

• Home equity lines of credit (HELOC)

• Cash-out refinance of residential property

• Share pledges or brokerage account security interests

Why It Works

Secured loans are acceptable because they demonstrate that the investor has committed risk and possesses underlying assets backing the investment. Proper documentation and legal structure help avoid RFEs and strengthen the capital credibility. USCIS considers these valid as long as collateral is fully documented

Unsecured Loans: Following the Zhang Precedent

In 2020, the U.S. Court of Appeals clarified in Matter of Zhang that unsecured loans—without collateral—may still qualify as capital if:

• The loan is lawfully obtained and properly documented.

• The investor is personally liable.

• The funds have been transferred into the EB‑5 enterprise.

This dramatically expanded funding options for investors lacking property or high-value collateral

Requirements for Use

• Formal loan agreement listing repayment schedule, interest, collateral status (or lack thereof), and lender details.

• Lender’s lawful source of funds: Tax returns, bank statements, or business documents.

• Documented fund flow: Clear tracing from lender to investor bank account to EB‑5 investment.

Why It Matters

This decision helps those from jurisdictions or communities where unsecured loans are common. Still, USCIS will scrutinize these cases; therefore, documentation must be thorough and precise.

Gifts and Inheritance: Non‑Repayable Capital

Gifts

Cash gifts from family or others may qualify as capital if:

• A formal gift letter states no repayment is expected.

• The donor’s source of funds is lawful.

• Transfers are documented via bank statements and transaction records.

Inheritance

Inherited funds qualify if you can document:

• Legal ownership via a will or probate.

• The donor’s lawful accumulation of those funds.

• Flow of funds from inheritance to EB‑5 investment.

Alternative Assets: Other Eligible Capital Forms

Sale Proceeds from Business or Property

• Sale of a business, real property, or investments can qualify.

• Provide documentation of original source, sale transaction, tax returns, and bank statements showing the flow of funds toward the EB‑5 commitment 

Equipment, Inventory, or Securities

• Tangible assets owned by the investor (not the EB‑5 enterprise) can count if valued at fair market value.

• Secure third‑party appraisal or valuation for support.

Structuring and Documenting Alternative Funds with Accura Immigration Firm

Accura Immigration Firm takes a comprehensive, strategic approach:

1. Funding Strategy

   • Determine the best source: secured loan, unsecured loan, gift, inheritance, or combination.

   • Develop a documentation plan for each category.

2. Legal Documentation

   • Draft formal promissory notes or gift agreements.

   • Secure appraisals for collateral.

   • Obtain lien perfection and title documents.

3. Source of Funds Mapping

   • Create clear fund flow charts tracing each dollar from origin to EB‑5 enterprise.

   • Compile bank records, tax filings, and lender documentation.

4. USCIS Petition Support

   • Include cover letters explaining how each funding source meets USCIS policy.

   • Anticipate RFEs by providing robust documentation in advance.

5. Continuous Compliance

   • Prepare for I‑829 (removal of conditions) with updated evidence of investment and job creation.

6. Ensure repayment plans or gift structures remain consistent with EB‑5 regulation.

Common Risks and How to Avoid Them

Loan Documentation Weakness

• Informal or hand‑shake agreements tend to trigger RFEs or denials.

• Accura ensures formal loan agreements, collateral perfection, and enforceable terms.

Inadequate Tracing of Funds

• Lack of transaction records or banking trails raises questions.

• Document every step: lender → investor → escrow or business.

Collateral Ownership Gaps

• Collateral must be owned by the investor, not by the EB‑5 enterprise.

• Appraisals and title checks confirm ownership and sufficiency.

Project-Invested Collateral

• If your collateral is tied to the EB‑5 business itself, USCIS may reject it.

• Ensure collateral is defendant’s personal asset only.

Real-World Scenario Examples

Case 1: Unsecured Family Loan

• Investor receives $800,000 from a parent with documented business income.

• Formal loan terms drafted with repayment schedule.

• Funds transferred via bank wire; traced into escrow for EB‑5.

• Accura assembles loan package and source-of-funds evidence.

Case 2: Secured HELOC

• Investor obtains $1,050,000 via cash‑out refinance of U.S. residential property.

• Property appraised and debt professionally registered.

• Cash deposited into investment LLC; documented for I‑526 filing.

Case 3: Mixed Source Funding

• Investor uses $300,000 from savings, $300,000 secured loan, and $200,000 inheritance.

• Each source documented separately with evidence of lawful origin.

• Accura's flow-chart and memo explain combination strategy to USCIS.

Key USCIS Standards (Summary)

According to recent policy and regulatory guidance:

• Lawful sourcing is non-negotiable.

• Loans can be secured or unsecured if documented (Zhang).

• Collateral must be personal and perfected.

• Gifts and inheritance are acceptable with full proof of origin.

• Capital must be at risk and invested in a qualifying new commercial enterprise

Benefits of Alternative Funding

• Greater flexibility for investors without large liquid reserves.

• Asset preservation: Investors can retain valuable holdings.

• Access to EB‑5 despite financial structuring constraints.

• Strategic use of gifts, family support, and economic tools.

When properly structured, these sources can meet USCIS standards and support a successful petition.

Why Accura Immigration Firm Is the Right Partner

Accura Immigration Law Firm brings deep expertise in EB‑5 financing, source-of-funds tracing, and compliance. Their approach includes:

• Personalized funding strategy consulting

• Detailed capital mapping and legal structuring

• Coordination with financial specialists (appraisers, accountants)

• High-quality petition drafting to preempt RFEs

• Ongoing compliance through I‑526, conditional residency, and I‑829

They help investors avoid common pitfalls and smoothly navigate the complex regulatory environment.

Final Thoughts

Loans and alternative funding sources—such as unsecured and secured loans, gifts, inheritance, or proceeds from asset sales—can all qualify as EB‑5 capital if structured carefully. The key is lawful sourcing, transparent documentation, and the investor’s personal liability and control. With a legal partner like Accura Immigration Firm, applicants can confidently assemble compliant funding packages, mitigate risks, and navigate the EB‑5 process from investment planning through final residency.