Can I obtain a loan collateralized by shares in my company?

In principle, it is possible to use shares or equity in your company as collateral for a loan and direct those funds toward an EB-5 investment. Viability, however, depends on the structure of the transaction, the lending institution’s policies, and, most importantly, whether the arrangement meets the program’s requirements.

In the EB-5, two points are central to any capital (including capital that comes from a loan): the lawful and documented source of the funds and the requirement that the capital remain ‘at risk’ in the enterprise. When using shares as collateral, care must be taken to ensure that:

• The source of the borrowed funds is documented and legitimate.
• The capital is genuinely invested in the project and remains ‘at risk’.
• The collateral arrangement does not transfer control of the funds to third parties in a way that undermines the investment.

It is also essential that the entire transaction comply with applicable financial laws, in addition to immigration requirements. A poorly structured arrangement can raise questions about the actual ownership and risk of the capital, which affects the adjudication.

Because this type of arrangement is sensitive and depends on specific details, evaluate the structure with professionals who specialize in immigration and finance, and confirm the current requirements directly with USCIS.

About the author

Victoria Harper

Editor-in-Chief

Meet the author

As a journalist and lead editor at Visto n’ Visa, Victoria helps ensure that immigration topics are covered in a clear, trustworthy, and easy-to-understand way. Her focus is on delivering useful, human, and relevant content for people exploring new paths abroad.