September 24, 2023

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Immigrants Can Use Loans For Investor Visas, DC Circ. Says

Law360 (October 27, 2020, 7:27 PM EDT) — Immigrants can use loan proceeds to invest in U.S. businesses to qualify for EB-5 investor visas, the D.C. Circuit ruled Tuesday, finding that loan proceeds don’t count as debt that needs to be secured by investors’ assets.

The three-judge panel said that U.S. Citizenship and Immigration Services wrongly counted the loans that two Asian investors took out from their companies to invest cash in Nevada businesses as debt on their EB-5 applications.

When individuals invest loan proceeds into businesses, they don’t become indebted to the businesses that they invested in, meaning that loan proceeds don’t constitute debt, according to the opinion,…

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