Using a Loan to Fund Your EB-5 Investment
Considering the EB-5 visa program but don't have the full $800,000 investment? An EB5 loan could be an option to fund your investment.
The future investment requirements for EB5 crossed a milestone in February 2025, and nobody noticed.
Based on the Consumer Price Index published in March 2025, the minimum investment for TEA and infrastructure projects required starting in January of 2027 increased from $862,500 to $900,000. Based on the CPI published for June 2025, we estimate that the investment threshold will be no less than $900,000, and realistically as much as $975,000.
Don’t be alarmed. The investment requirement is still $800,000 today. The future investment requirement is based on a formula in the law. Let me explain.
The EB-5 Immigrant Investor Program, established in 1990, had significant changes with the EB-5 Reform and Integrity Act of 2022 (RIA). Understanding this law is crucial for potential investors as it includes insight into how the United States government will handle increases in the minimum EB5 investment amount moving forward. Increases are expected to take effect in January 2027, less than 18 months from now.
Current EB5 Investment Amount
Historically, the required EB5 minimum investment was $1 million for non-targeted employment areas and $500,000 for projects in targeted employment areas (TEAs), regions characterized by high unemployment or rural status. The Reform and Integrity Act of 2022 raised these thresholds significantly to reflect economic changes since the program's inception. The new minimum EB5 visa investment amount requirement is now $1,050,000, reduced to $800,000 for TEAS and qualifying infrastructure projects.
A Mandate for Automatic Adjustment Jan. 1, 2027
The RIA law mandates automatic adjustments of the investment thresholds every five years, beginning January 1, 2027. These adjustments will be based on the cumulative annual percentage change in the Consumer Price Index for All Urban Consumers (CPI-U) reported by the Bureau of Labor Statistics. This ensures that the investment amounts remain aligned with inflation and economic conditions, preventing another extended period without adjustment.
Using CPI data from January 1, 2022, through February 28,2025, we can calculate the impact of inflation on the investment thresholds. As of February 28, 2025, the CPI-U index was recorded at 319.082, reflecting a 14.4% cumulative change since December 2021 when it was 278.802.
The increased thresholds and automatic adjustments reflect public policy choices by Congress to ensure the EB5 program remains practical and reflects current economic conditions. This means a higher initial investment. Understanding the automatic adjustment helps investors plan their finances better, knowing that the requirements will evolve with inflation.
Planning for an Increase to EB5 Investment Amount
The changes brought by the RIA mark a significant shift in the investment landscape for prospective EB5 investors. The program aims to remain relevant and economically viable by incorporating automatic adjustments based on inflation. Investors should stay informed about these changes and consider potential future increases in their planning.
What will increases look like? According to the Peachtree Group EB5 team’s conservative calculations, in January 2027, we expect the lowest investment threshold will increase from $800,000 to between $900,000 to $975,000. Here’s how we came to this conclusion.
Projected EB-5 TEA Amount in 2027
Expected EB5 Investment Amount Increase?
The graph can be summarized as follows:
Based on these ranges, we expect, as of January 2027, the lowest investment threshold will increase to between $900,000 to $975,000.
What Can You Do Now?
No one can be certain of what the future holds, even when hypothesizing based on historical data. However, what we do know is there will be automatic adjustments to the minimum EB5 investment amount per the RIA and those adjustments are expected to take effect in January 2027, less than two years from today.
To lock in the lower EB5 investment amount, it is important to get the process started. Peachtree Group is an integrated investment management firm specializing in identifying and capitalizing on opportunities in dislocated markets, anchored by commercial real estate. Today, we manage billions in capital across acquisitions, development, and lending, augmented by services designed to protect, support, and grow our investments.
Our EB-5 Team has more than 30 years combined experience in EB-5 investments managing over $2 billion in EB-5 transactions. Learn about the Peachtree Advantage and let us help you navigate the difficult EB-5 process before investment amounts rise.
Taking the Next Steps with Peachtree
Here’s how you can begin your journey to U.S. residency with an EB-5 investment.
Visit Our Website
Start by visiting our website where you can learn more about our specific EB-5 investment opportunities.
Related posts
If you enjoyed this article, read through these related press releases and insights.
If you're considering the EB-5 visa program but don't have the full $800,000 investment amount readily available, you may be wondering: can you use an EB5 loan to fund your investment? The answer is yes, but there are important requirements and considerations to understand.
The 2022 Law Change Made EB5 Loans Clear
The EB-5 Reform and Integrity Act of 2022 brought significant clarity to the loan question. "The new law clarified that loans are okay. Before then, it was not clear whether a loan was okay," explains Adam Greene, EVP EB-5 for Peachtree Group. Previously, the immigration service had taken the position that borrowed funds didn't qualify as capital if they weren't the investor's own assets.
Under the new law, gifted or borrowed funds may be counted as long as they meet two key requirements: the funds were obtained "in good faith" and were not used "to circumvent any limitations of permissible sources of capital."
What USCIS Needs to See for EB-5 Loans
When documenting an EB-5 loan, USCIS requires specific evidence:
- A valid loan agreement with clear terms
- Documentation of the loan source and how proceeds are transferred
- Proof that you, not someone else, are responsible for repayment
- Evidence of the lender's source of funds (unless from a U.S. chartered bank)
"As long as you can trace the money to a loan from a US chartered bank, that's OK," Greene notes. "However, if borrowing from individuals, you'll need to demonstrate that their source of capital is legitimate.”
Valid EB-5 Loan Sources
Several loan types can work for EB-5 investments:
- Home equity lines of credit
- Loans against investable asset (margin loans)
- Personal loans from banks with proper collateral
- Loans from companies or trusts you own
- Unsecured loans, if properly documented
"Any of these loans is valid as long as there is a legally enforceable loan agreement and you can establish that the funds that you get from the loan were sourced legitimately," Greene explains.
Key Risks to Avoid
The biggest red flag is attempting to circumvent source of funds requirements.
"If you're trying to do something cute or tricky or something that just makes it easier to document your source of funds, you violate the spirit of the EB-5 law and you will have a high risk of I-526E denial," warns Greene.
Other risks include:
- Inadequately documented loan agreements
- Loans secured by the EB-5 project itself
- Immediate loan repayment with unsourced funds
Peachtree Group's EB-5 Loan Solution
Recognizing the complexities of EB-5 loan documentation, Peachtree Group has created an affiliated lender that provides loans specifically for EB-5 investors. This program offers several advantages:
Unsecured Loan Structure: "We have an affiliated lender that actually provides a loan to an investor that doesn't have a formal security agreement against the assets of the borrower," Greene explains. This eliminates potential complications with the immigration service regarding security interests in the EB-5 investment itself.
Flexible Repayment Terms: The loan doesn't need to be repaid for up to five years from origination. "It's very possible or even likely that their EB-5 investment may be repaid within those five years," Greene notes, meaning investors might use their returned EB-5 capital to repay the loan. Of course, EB-5 investors would remain personally liable for any shortfall in repayment proceeds, which is required to satisfy the “at-risk” requirements of the EB-5 program.
Streamlined Source of Funds: Since the affiliate lender sources funds from a US chartered bank, the documentation process is simplified. "We are able to prove that we funded off a bank line and therefore that should be sufficient for source of funds," Greene explains.
Clear Risk Structure: Investors who use $400,000 of their own funds plus a $400,000 loan are "at risk for $800,000," satisfying USCIS requirements while providing financing flexibility.
The Bottom Line
"Loans are allowed under the new law unambiguously; it’s written in the text of the law," Greene emphasizes.
Success requires careful planning and proper documentation. The loan must represent genuine risk to the investor, and all source of funds requirements must be met.
Peachtree Group's affiliated lending program is designed to navigate these requirements while providing investors with flexible financing options. Before proceeding with any EB-5 loan structure, consult with an experienced immigration attorney to ensure compliance and avoid potential complications during the adjudication process. For more information about Peachtree Group's EB-5 loans contact agreene@peachtreegroup.com.
Peachtree Group Receives USCIS Approval for EB-5 Funded Madison Bradenton Multifamily Development
Peachtree Group has received I-956F approval from U.S. Citizenship and Immigration Services (USCIS), the federal agency that oversees the EB-5 Immigrant Investor Program, for the development of Madison Bradenton, a 240-unit multifamily community in Bradenton, Fla.
Peachtree Group (“Peachtree”) has received I-956F approval from U.S. Citizenship and Immigration Services (USCIS), the federal agency that oversees the EB-5 Immigrant Investor Program, for the development of Madison Bradenton, a 240-unit multifamily community in Bradenton, Fla.
The approval marks another major step forward for Peachtree’s EB-5 program, which drives economic growth and job creation through foreign investment in U.S. projects.
“Madison Bradenton reflects the strong demand for high-quality multifamily housing in growing markets,” said Adam Greene, executive vice president of EB-5 at Peachtree. “This project underscores our ability to pair EB-5 financing with secured lending, delivering attractive opportunities for investors while meeting critical housing needs.”
This marks Peachtree’s fourth I-956F approved development. Previous projects include Home2 Suites by Hilton in Boone, N.C., Spring Hill Suites by Marriott in Bryce Canyon, Utah and TownePlace Suites by Marriott in Palmdale, Calif.
Peachtree launched its EB-5 program in 2023 and remains committed to delivering high-quality, job-creating projects nationwide.
.png)
Peachtree originated $47 million in floating-rate construction financing with a four-year term for the development. The project will include five four-story, elevator-serviced apartment buildings and one two-story carriage-style building, along with a clubhouse and several garage structures.
The 10.7-acre site at 303 301 Boulevard West sits in Manatee County, one of Florida’s fastest-growing areas. The location offers access to major employers, top healthcare centers and leisure destinations, including Siesta Key Beach, ranked among the nation’s best.
The community will feature 120 one-bedroom, 100 two-bedroom and 20 three-bedroom residences, averaging 1,027 square feet. Units will include stainless steel appliances, walk-in closets, granite countertops, kitchen backsplashes, ceiling fans, full-size washer-dryers and private patios or balconies.
Bradenton and the North Port–Sarasota–Bradenton metropolitan area continue to benefit from strong population growth, economic expansion and an appealing coastal lifestyle. With 81 percent of area jobs accessible within a 30-minute drive and leading employers in healthcare, government and retail, the market outlook remains highly favorable.
The EB-5 visa program allows foreign investors to obtain a green card in exchange for making a qualifying investment in a U.S. project that creates or preserves at least 10 full-time jobs. The minimum investment is $800,000.
Unlocking Creative Financing: How EB-5 Can Optimize Your Capital Stack
Explore the innovative capital solution that's enhancing commercial real estate returns. In this episode, Greg Friedman talks with Adam Greene about how Peachtree Group leverages EB-5 foreign investment capital to optimize project financing and create U.S. jobs.
In a recent episode of the Peachtree Point of View podcast, Greg Friedman, CEO of Peachtree Group, sits down with Adam Greene, who heads the company's EB-5 program. Their conversation reveals how this unique financing mechanism can stimulate economic growth and job-creation while producing competitive advantages for commercial real estate investments.
For Peachtree Group investors, understanding EB-5 provides insight into how the firm enhances investment returns. The program works by connecting foreign nationals seeking U.S. green cards with development projects that need capital. These foreign investors contribute a minimum of $800,000 to qualifying projects that create U.S. jobs, and in exchange, they and their families receive a pathway to permanent residency.
.png)
The EB-5 capital typically comes at a lower cost than traditional financing sources, as foreign investors are primarily motivated by immigration benefits rather than financial returns. This allows Peachtree to replace more expensive layers of the capital stack with this efficient capital, potentially improving overall project economics.
Adam Greene, with 14 years of specialized experience in EB-5 and nearly three decades in construction financing, explains Peachtree's innovative approach: Unlike competitors who use a "best efforts" fundraising model, Peachtree fully underwrites and commits to projects upfront, then uses EB-5 capital as a take-out strategy. This eliminates execution risk while still delivering the financial advantages of EB-5 funding.
The podcast highlights a recent $25 million Home2 Suites hotel in Boone, North Carolina as an example. Located in a rural area qualifying for the $800,000 EB-5 investment threshold, the project successfully incorporated EB-5 capital to enhance its financial structure.
The conversation also touches on the proposed "Gold Card" visa program under the Trump administration, which differs significantly from EB-5 as it involves a $5 million donation to the U.S. Treasury rather than an investment in job-creating projects.
Key Takeaways for Peachtree Investors:
- Enhanced Returns: EB-5 capital can be used as a take-out strategy for more expensive financing in the capital stack, potentially improving investment returns for Peachtree's investors.
- Risk Mitigation: Peachtree's approach eliminates the funding uncertainty typically associated with EB-5 by fully underwriting projects upfront, ensuring deal execution regardless of EB-5 raise timing.
- Competitive Advantage: In today's tight lending environment, access to this alternative capital source provides Peachtree projects with a meaningful edge in deal structuring.
- Job Creation: EB-5 allows worthy, job-creating projects to obtain capital to get done, but only if they prove the extra benefit of job creation for their local economies.
- Program Stability: The EB-5 program is authorized through September 2027, with investments made before September 2026 being grandfathered under current rules, providing a clear timeline for planning.
Listen to the full episode of Peachtree Point of View to gain deeper insights into how Peachtree leverages EB-5 financing to optimize returns on commercial real estate investments. Follow Peachtree Point of View on your favorite podcast platform for more strategic conversations on investment opportunities and financing innovations.
