Can I use BNDES financing?

The EB-5 program allows foreign investors to obtain permanent resident status in the United States through a capital investment in an initiative that creates jobs for U.S. citizens. One of the core points of this program is the requirement that the investment be made with ‘at risk’ capital, that is, capital that is effectively committed and subject to possible losses, and that the source of funds be demonstrated in a lawful and transparent manner.

In the context of this requirement, the use of financing, such as BNDES loans, can present difficulties. Many loans, including those offered by development institutions, often have clauses that guarantee the repayment of the financed amount. This characteristic contradicts the principle that the investment must be entirely your own capital, subject to the fluctuations and risks inherent in the business.

Thus, resources derived from financing may not be considered eligible to compose the amount that needs to be ‘at risk’ according to the EB-5 program requirements. It is essential to remember that U.S. immigration authorities carefully evaluate the source of the funds and the way the capital is committed in the investment operation. Any incompatibility, such as the use of resources guaranteed by a loan requiring secure repayment, can raise doubts about compliance with the program’s criteria.

Therefore, it is always recommended to seek updated information and expert guidance on the subject. Consulting professionals who work in immigration and financial planning is essential to avoid misunderstandings or possible legal complications that could compromise the success of the investment within the EB-5 context.

Extra attention should be given to maintaining compliance with all laws and to avoid falling for offers that promise guaranteed results without a detailed case analysis. In short, the use of BNDES financing for the EB-5 program generally does not align with program requirements, but each situation has particularities that may require specialized legal assessment.

Currently, the recommended practice is that the invested capital come from own funds and be duly demonstrated, fully meeting the criterion of being ‘at risk’ as required by U.S. authorities.

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.