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.
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Form I-485, or the "Application to Register Permanent Residence" allows an EB-5 investor to adjust their investor's status from a non-immigrant to a conditional permanent resident (CPR). To take advantage of this, the EB-5 investor must already be in the United States lawfully on a non-immigrant visa such as a F-1 or H-1B. The form is generally filed after the I-526E Petition which is the first step in the EB-5 visa process. This blog post explains how the Form I485 fits into the overall EB-5 process, the essential documents needed, and how to avoid potential delays in the adjustment of status journey.
Concurrent Filing
The passing of the EB-5 Reform and Integrity Act of 2022 (“RIA”) allowed EB-5 investors to file Form I-485 concurrently with Form I-526E if visas are available. This is called concurrent filing and allows investors to remain in the US while their application is processed. In short, if you are in the U.S. you can stay in the U.S. while you wait for the adjudication of your Form I-526E Petition.
Conditional Permanent Residency
Once the I-485 is approved, the investor becomes a conditional permanent resident which is good for two years. During this time, they need to fulfil the promise they made with the I-526 form to invest in a project that creates US jobs. In order to remove the conditional and become a permanent resident, the investor must file Form I-829 or the "Petition by Investor to Remove Conditions on Permanent Resident Status". Once this is granted, the investor and their eligible family members receive permanent green cards.
Investor Benefits During I-485 processing:
While the I-485 is processing, EB-5 investors may also file a Form I-765, "Application for Employment Authorization" and Form I-131, "Application for Travel Document" to receive an employment authorization and travel permit, which allows them to work in the US and travel while their applications are pending.
I-485 Filing Requirements: Documents to be submitted with your Form I-485
Peachtree Group encourages ourEB-5 investors to consult with their immigration attorney and to read through the Form I-485 form instructions as the specific evidence required with theForm I-485 application may vary depending on the immigrant category you are filing under.
Documents required to be submitted with your Form I-485 include:
- Passport-style photographs
- Government-Issued identity document with photograph
- Birth Certificate
- Inspection and Admission or Inspection and Parole
- Passport page with admission or parole stamp;
- Passport page with nonimmigrant visa; and
- FormI-94 Arrival-Departure Record.
- Evidence of Maintenance of Status
- Original Sealed Medical Exam Results (FormI-693)
I-485 EB5 Filing Costs
As November 2024, the filing fee for Form I-485 is $1,440. The EB-5 investor pays additional filing fees if they are also filing Form I-765 and Form I-131. Be sure to check the USCIS website for the most up to date fee information. In addition, this site has information on what to do while you wait for your green card application.
Prevent unnecessary delays in the adjudication of Form I-485
By following the I 485 form instructions and submitting all the required evidence and supporting documentation at the time of the Form I-485 filing, EB-5 investors may avoid receiving a Request for Evidence (“RFE”) from USCIS.
Tips to prevent receiving an RFE include:
- Form I-693, Report of Immigration MedicalExamination and Vaccination Record
- Only a USCIS designated civil surgeon can perform this medical examination in the United States. The civil surgeon will document the results of the examination on Form I-693. USCIS considers a complete Form I-693 to remain valid for two years from the date the civil surgeon signs the form.
- Due to the limited time validity of Form I-693, EB-5 investors are not required to submit Form I-693 at the time they file their adjustment application but may select to do so in order to avoid a RFE and delay the adjudication process. USCIS cannot approve the Form I-485 without having the report of Immigration Medical Examination and Vaccination Record, so if the Form I-693 is not filed with the adjustment of status, USCIS will have to issue an REF to obtain the medical report.
- File all required initial evidence and supporting documentation as described in the form instructions; and
- Use the current edition of Form I-485
Additional Resources
For more information about the I-526E Form and the EB-5 Immigrant Investor Program, consider consulting the following resources:
- USCIS Website: Access official forms, instructions, and updates on processing times.
- A Simple Guide to EB-5 Immigration by Investment
- Immigration Attorneys: Seek legal advice from professionals specializing in EB-5 cases. If you are not familiar with an immigration attorney, contact Peachtree Group, our team can give you contact information for several knowledgeable lawyers.
- Contact Peachtree Group: Contact Peachtree Group for guidance on specific investment opportunities and compliance requirements.
- Learn more about the Peachtree Advantage
- What is form I-526E for EB-5 investors?
- What is Form I-826 for EB-5?
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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.
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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.
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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.
