EB-5 Immigrant Investor Program offers a pathway to U.S. permanent residency, making it an attractive option for many investors. However, meeting the required investment amount for the EB-5 Program can be a major financial challenge. This is why many investors consider using a loan to fund their EB-5 investment.
But not every loan qualifies under EB-5 rules. USCIS closely reviews both the Source of Funds and the "at risk" requirement before approving an EB-5 petition. That's why choosing between a secured loan and an unsecured loan can have a significant impact on your entire immigration process.
⚠ Disclaimer
Immigration laws and financial requirements change frequently. This article is for informational purposes only and does not constitute legal or financial advice. Before making any decisions, please consult a qualified professional or reach out to the High Net Worth Immigration team for a free, up-to-date consultation.
What is a Secured Loan?
secured loan is backed by collateral, such as real estate, land, or other valuable assets. Because the lender has less risk, these loans typically come with lower interest rates and make it easier to borrow large amounts of money.
For EB-5 investments, USCIS generally accepts secured loans because they provide clear financial transparency. However, there is one major condition: you must prove that the asset you are using as collateral was obtained legally (known as proving the "lawful source of funds for EB-5 Program").
What is an Unsecured Loan?
Unsecured loan does not require any collateral. Instead, it is granted based on the borrower’s credit score, financial strength, and promise to repay the debt. Because the lender takes on more risk without collateral, these loans usually have higher interest rates. It can also be quite difficult to get an unsecured loan for the large amounts of money required for an EB-5 investment.
Historically, USCIS heavily restricted the use of unsecured loans for EB-5 investments. However, a landmark federal court decision in Zhang v. USCIS (ruled by the D.C. Circuit Court of Appeals in October 2020) changed this landscape.
Following this ruling, USCIS officially updated its policy on July 22, 2021. Now, funds obtained through a legitimate unsecured loan are evaluated as a "cash contribution" rather than indebtedness. However, approval requires meticulous documentation proving the loan's legitimacy, the lender's credibility, and your personal ability to repay it.
Need Help Structuring Your EB-5 Investment?
USCIS loan requirements can be complex. Our team is available to guide you through the documentation, source of funds verification, and overall EB-5 process with clarity and confidence.
Secured vs. Unsecured Loans: How Do They Work for an EB-5 Investment?
USCIS may accept both secured and unsecured loans for an EB-5 investment, but each is reviewed differently.
Secured Loan
With a secured loan, USCIS focuses on the lawful source of the collateral.
For example, if you use your home as collateral, USCIS will want to see that you legally earned the money used to buy the property. You may need to provide documents such as:
- ◆Property appraisal or valuation
- ◆Property purchase records
- ◆Tax records
- ◆Other documents showing the lawful source of the property
Unsecured Loan
An unsecured loan does not require collateral.
Instead, USCIS reviews the loan agreement, confirms that the lender is legitimate, and checks whether you have the financial ability to repay the loan.
Common Rule for Secured and Unsecured Loans
No matter which type of loan you use, your investment must meet the EB-5 "at risk" requirement.
This means that you, instead of the lender, must take on the financial risk of the investment.
Can Loan Proceeds Be Gifted for an EB-5 Investment?
In some cases, parents or family members may borrow funds and then gift the cash to the EB-5 investor (their child). While USCIS permits gifted funds, this specific scenario is heavily scrutinized.
For this to be acceptable, the donor (parent) must prove the loan was obtained lawfully and that they have the independent financial capacity to repay it. Importantly, you must demonstrate that the gift is entirely unconditional and that the EB-5 investor (the child) bears zero legal obligation to repay the debt. USCIS strictly requires the investor to be "primarily and personally liable" for their own investment debts, so any appearance of a disguised loan to the investor will lead to denial.
Secured or Unsecured Loan: Which One Is Right for You?
The best loan option depends on your financial situation, risk tolerance, and how well you can document your funds.
Secured Loan Is Good for You If:
- ✓You have valuable assets, such as real estate, that you can use as collateral.
- ✓You want a lower interest rate and better loan terms.
- ✓You are willing to provide the detailed documentation needed to prove the Source of Funds for your collateral.
- ✓You want to present a more traditional and well-documented funding structure to USCIS.
Unsecured Loan May Be Good for You If:
- ✓You do not have major assets to use as collateral.
- ✓You have a strong credit profile and can clearly show that you have the financial ability to repay the loan through your income or business.
- ✓You want to avoid the lengthy process of documenting the Source of Funds for collateral.
- ✓You are comfortable paying a higher interest rate in exchange for a faster and more flexible funding process.
Vicky Katsarova is an internationally recognized advisor in residency and citizenship by investment, with more than 15 years of experience helping investors, entrepreneurs, and families secure strategic residency and citizenship solutions.
Since founding High Net Worth Immigration in 2010, she has advised clients across more than 20 jurisdictions, helping them enhance global mobility, protect family wealth, diversify geopolitical risk, and unlock international opportunities through carefully selected investment migration programs.
Having lived in Bulgaria, the UAE, and Canada, Vicky combines professional expertise with personal international experience. Her boutique advisory is built on discretion, integrity, and long-term client relationships, delivering tailored solutions aligned with each client’s unique objectives.
Member of the Uglobal Writers Council | Contributor to UNIQUE Private Jet Magazine | Featured in CIVITAS POST's “Leading Women” & Women's Journal
