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[Q] Would a loan backed by future cash flows qualify as proper EB-5 investment?


{Q} Would a loan backed by future cash flows qualify? Can an EB-5 investor argue that the loan is collateralized by his business which generates the future income? Basically, does this loan qualify as "capital"?

In our opinion, USCIS will have some issue with this arrangement, because basically this loan is given on the borrower's good credit or name. It's like Bill Gates going to any bank and getting a loan purely based on his perceived ability to make money. What is a loan collateralized by personal asset is sometimes a grey area, because one could argue that one's good name is personal asset also.