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.
Form I-829, Petition by Investor to Remove Conditions on Permanent Resident Status is filed by EB-5 investors to remove the conditions on their two (2) year green cards. The investors obtained the conditional green cards through their investment in a new commercial enterprise. Filing the Form I-829 is a crucial step in the EB-5 investor’s immigration process as once approved it allows the investors, along with their spouses and unmarried children under twenty-one (21), to achieve permanent residency in the United States. In this article, we explore the I-829 Form in detail, covering its purpose, eligibility requirements, necessary documents, filing timeline, common challenges, and practical tips for a successful submission.
Overview of the I-829 Form
Due to the conditional nature of the EB-5 investors’ permanent resident status, between 21 – 24 months after receiving the conditional green card, the EB-5 investors have to file an I-829 EB5 Form with USCIS to remove the condition on their permanent resident status. The EB-5 investors provide documentation to demonstrate they fulfilled the program’s requirements, including proof they sustained their investment and created the required number of jobs. The I-829 form is the final step in the EB-5 investors’ immigration process, and once approved investors become unconditional permanent residents of the United States.
Conditions for Removing Conditional Status
To successfully remove the conditions on the green card, the following requirements must be met:
- Invested Capital: The EB-5 investor must show they have invested or are actively in the process of investing the required capital; and the capital was made available to the business(es) most closely responsible for job creation.
- Sustained Investment: The EB-5 investors must show they have sustained their investment in the new commercial enterprise for two (2) years from the time their investment was made available to the entity most closely responsible for creating the jobs.
- Job Creation: The EB-5 investors must also show at least ten (10) full time positions for qualifying employees have been directly or indirectly created or will be created within a reasonable time. In the case of a troubled business, the EB-5 investors must submit evidence showing the number of existing employees were maintained at no less than the pre-investment level during the period of the EB-5 investors’ conditional permanent residence.
Specific Information and Documents Required
When filing Form I-829, the EB-5 investor needs to provide a variety of documents to support their petition, including:
- Investment Evidence: Proof that the EB-5 investors’ capital contribution has been invested and sustained which may include but is not limited to: financial statements, bank statement, contracts, federal or state income tax returns.
- Job Creation Documentation: The evidence needed to prove job creation is determined by the type of investment, direct or through a regional center.
- The documentation for jobs created indirectly as a result of an investment in a regional center may include, but is not limited to: tax and financial statements, expenditure and revenue reports, construction draws, invoices and receipts, bank statements, quarterly reports etc. In addition, at the I-829 stage, an Economic Impact Report is generally commissioned to evaluate the actual number of jobs created from the construction and operation of the Project selected by the EB-5 investors. This report is generated based on the actual EB-5 eligible costs spent on the Project, as well as the actual revenue generated by the Project. This report is different than the initial Economic Impact Report provided to USCIS with the Form I-956F, Application for Approval of an Investment in a Commercial Enterprise filing as the inputs for calculating the jobs are no longer projections, but actual costs incurred during development of the Project and actual revenue generated during the second or third year of the Project’s operation.
- The documentation of jobs created directly by the new commercial enterprise may include but is not limited to: payroll records, W-2s, employer’s quarterly federal tax returns, Forms I-9s, identification documents of the direct employees or any other evidence showing the required jobs were created or preserved.
- Personal Information: Identification documents, such as copies of the applicant’s passport, green card, and any previous immigration documentation.
Timeline for Filing the I-829 Form
The I-829 form must be file within the 90-day period immediately before the second anniversary of the EB-5 investor’s admission as a conditional permanent resident. Filing early or late may result in complications or even the termination of the EB-5 investor’s conditional permanent resident status, so it is critical to adhere to this timeline.
I-829 Processing Time
The processing time for Form I-829 is listed on USCIS website. During this period, USCIS reviews the I-829 petition, request additional evidence, if necessary, and eventually reach a decision. It is important to note that while the EB-5 investor’s I-829 petition is pending, the conditional permanent residency status is automatically extended for the period indicated on the EB-5 investor’s filing receipt. After filing the I-829 Petition, the EB-5 investor receives a filing receipt notice from USCIS, which should accompany their expired green card.
Common Challenges and Practical Tips
Filing Form I-829 can be complex, and applicants may face several challenges, including:
- Incomplete or Inconsistent Documentation: Ensure that all required documents are complete, accurate, and consistent throughout the petition.
- Prove Job Creation: Demonstrating the investment has created or preserved ten full-time jobs can be challenging, especially in projects that face delays or other complications. The EB-5 investor who select to invest in one of Peachtree Group’s projects should be assured that all the project related documents necessary for their Form I-829 filing are collected, reviewed and assembled into an I-829 Template by Peachtree. The I-829 Template will be provided to our EB-5 investors well in advance of their 90-day filing window.
- Meet the Filing Deadline: Missing the 90-day filing window jeopardizes the chances of removing the conditions on the green card.
Practical Tips for a Successful Submission
- Start Early: EB-5 investor should begin gathering the necessary documentation well in advance of the filing deadline to ensure that everything is in order.
- Consult with Experts: EB-5investors should work with their immigration attorneys and consultants experienced in the EB-5 process to prepare their petition and provide guidance. If you don’t have an immigration attorney, Peachtree Group can recommend several that have collaborated with us in the past.
- Double-Check All Information: Review form and documents for accuracy and consistency before these are submitted to USCIS.
- Stay Informed: Keep up to date with any changes in immigration laws or USCIS policies that could affect the petition.
Frequently Asked Questions
What is the I-829 Form?
The I-829 Form is a petition filed by EB-5 investors to remove the conditions on their permanent resident status. It is the final step in the EB-5 process, allowing investors to obtain an unconditional green card if the EB-5 Program's requirements are met.
How Do I Fill Out the I-829 Form?
To fill out the I-829 Form, the EB-5 investors must provide personal information, details about their investment, and evidence they have sustained the investment and created the required number of jobs. The I-829 Filing is a voluminous filing, containing numerous exhibits which generally include financial statements, tax returns and bank statements for numerous years, as well as constructions draws, expenditure reports, revenue repots and a job creation analysis, encompassing thousands of pages of supporting documents.
Why Do You Need to Fill Out the I-829 Form?
Filling out the I-829 form is necessary to remove the conditions on the EB-5 investor’s green card. if this petition is not filed, the conditional resident status will expire, and the investor will lose the ability to become a permanent resident of the United States.
What Happens After the I-829 Form is Approved?
Once the I-829 Form is approved, the EB-5 investor, their spouse, and their unmarried children under 21 become permanent resident of the United States of America. This status grants EB-5 investors many rights and privileges, including the ability to live and work in the United States, to own property, attend public school and colleges, and be protected by the laws of the United State and of the State where the EB-5 investors reside.
Additional Resources
For more information about the I-829 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.
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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 assest (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.
