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Using Personal Loans and Unsecured Loans for EB-5

For years, USCIS would not allow personal loans for EB-5 investment. There are a lot of policy decisions around this, but one main concern is that foreigners applying through their banks for a foreign loan could perhaps use the personal loans or other unsecured loans for their EB-5 investment application, obtain the permanent residency in the U.S. while later not paying off the personal loan to their home bank. However, the rules have changed. It does appear that personal loans or unsecured loans are possible for EB-5 investment and USCIS will now accept these funds for the program.

The recognition of personal loans as a viable source of funds under the EB-5 program is one of the most pertinent changes that occurred in 2020 for prospective clients. Historically unsecured loans were not admissible as a viable source of funds, however a recent case ruling has distinguished this rule and found no objective for investors to use personal loans for their application.

What does this mean for a prospective EB-5 investor?

Investors who have been interested in the program but have not been able to participate due to not having sufficient funds can now subsidize their saved amounts with money received from a personal loan. This opens doors for investors that for instance could raise the $500,000 capital investment but struggle to raise the now increased $900,000 capital investment.

What are the personal loan requirements?

Whilst each bank has a different set of requirements and their own maximum borrowing amount most banks in the United Arab Emirates can provide personal loans up to 2 million Dirhams for foreign nationals. That is roughly $540,000, allowing an investor to be half way closer to obtaining the full amount required for their application.

Additionally, prior to the banks approving your loan application they will need to check your affordability rate and base the amount they give you off of that rating. Generally this is what the banks would require for checking if you are an eligible candidate:

  • Minimum salary of AED 7,000
  • Employment Confirmation letter
  • Copy of UAE Residency card
  • Applicant must be 21 years or older
  • Bank statements of the last 3 months if not banking with that particular bank

Once you have completed your application and have received your funds, our firm, The American Legal Center will assist you in completing your petition. We will proceed to collating the rest of the documents that will explain where the balance of the money comes from. Once we have drafted your source of funds declaration and you have chosen your EB-5 project to invest in we will commence with submitting your application to the United States Citizenship and Immigration Services.

What are the benefits of the EB-5 immigrant investor visa?

Once the I-526 petition has been approved and the prospective investor obtains their U.S. green card, they will be considered U.S. permanent residents. This means that they will receive all the benefits of being a U.S. citizen. They will be able to work, sponsor family, children are eligible for free public school education, access to Ivy league university and access to federal grants and scholarships. Moreover, after a few years the investor can start the route to application for naturalization.

The American Legal Center is the leading EB-5 consultancy in Dubai. We have a team of U.S. licensed lawyers who have been working in the industry for over 10 years assisting families in the GCC relocate to the U.S. We do not provide any financial advice and require all clients to seek independent advice. 

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