Can I receive financing from the SBA (Small Business Administration)?

The EB-5 program is an investment pathway that, besides offering the opportunity for residence in the United States, imposes strict requirements regarding the origin and the risk of the invested capital. One of the central premises of EB-5 is that the invested money must come from the investor’s own funds and be ‘at risk’ during the development of the project, which means that the funds cannot be predominantly derived from loans or financings that require repayment.

When it comes to SBA (Small Business Administration) financing, it is important to clarify that this type of contribution is characterized as a loan, that is, financing which must be reimbursed. Generally, such loans do not meet the EB-5 criteria, as investors need to demonstrate that they are fully committing their own resources and that these are indeed subject to the inherent risks of the enterprise.

Moreover, U.S. immigration authorities carefully examine the origin of the capital and may not accept funds coming from financings that imply repayment obligations, since this may affect the characterization of the investment as ‘at risk.’

It is crucial to always follow immigration laws and guidelines established by the U.S. authorities. It is recommended to seek specialized guidance and avoid offers or marketing campaigns that promise easy solutions or guaranteed results, especially when dealing with complex matters regulated by the U.S. government.

Thus, when planning your EB-5 investment, make sure that all employed funds are duly documented and that the capital structure complies with the program’s requirements. Finally, remember that each situation has particularities, and it is always prudent to consult qualified professionals to help clarify doubts and ensure that all steps are in accordance with current legislation.

Victoria Harper

Editor-in-Chief

Meet the author

Leading journalism and editorial content at Visto n’ Visa, Victoria helps make immigration topics clear, trustworthy, and easy to understand. Her focus is on delivering useful, human, and relevant content for people exploring new paths abroad.