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 wiht 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 will provide 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.

‍

‍

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.

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.

‍

‍

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.

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.

‍

‍