USCIS Is Denying EB-5 Petitions Funded Through Regional Center Loans: Key Takeaways for Indian Investors

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December 1, 2025

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USCIS to Consider “Anti-Americanism” in Immigrant Benefit Requests – Copy

Introduction

For many Indian investors, the EB-5 Immigrant Investor Program has been a reliable pathway to U.S. permanent residency — allowing families to relocate to the United States while contributing to job creation and economic development. However, a recent pattern in USCIS adjudications should prompt careful attention: EB-5 petitions funded through loans provided by regional centers or related project entities are increasingly being denied, in many cases without even issuing a Request for Evidence (RFE).

This trend has significant implications for prospective applicants and highlights the importance of structuring EB-5 investments correctly from the start.

Understanding USCIS Requirements: Capital Must Be Truly “At Risk”

Under the USCIS Policy Manual (Vol. 6, Part G), investors must demonstrate that:

  1. Their investment funds come from a lawful source, and
  2. The capital is placed “at risk” for the purpose of job creation and potential return — meaning no guaranteed repayment.

Using loan proceeds is allowed, but only when:

Why Loans from Regional Centers Are Being Denied

Throughout 2025, immigration attorneys have observed a growing number of denials of I-526E petitions that rely on loans originating from the regional center or its affiliated project companies. These denials often come without RFEs, reflecting USCIS’ position that these structures violate core EB-5 investment rules.

Key concerns include:

Reason Explanation
Circular Funding / Self-Dealing When a project lends funds to its own investor, USCIS sees this as artificial capital injection rather than a real investment.
Lack of Genuine Risk If the project controls both sides of the transaction, the investor is not truly exposed to potential loss.
Compliance Post-RIA 2022 The EB-5 Reform and Integrity Act tightened oversight and enforcement to prevent financial engineering and misuse of investor capital.

Impact on Investors

A denial can be costly:

What Loan Structures USCIS Will Accept

USCIS continues to accept investments funded by loans, provided the financing is structured correctly:

✔ The loan comes from an independent, third-party lender (e.g., a bank or private lender not affiliated with the project)
✔ The investor is personally liable for repayment
✔ The loan is backed by the investor’s own collateral, such as real estate or securities
✔ Clear documentation establishes the lawful origin of both the collateral and the loaned funds

Practical Guidance for Indian EB-5 Applicants

If you are planning an EB-5 investment:

Our Conclusion

The EB-5 program remains a valuable immigration route for Indian investors, but the scrutiny on funding structures has intensified. USCIS is clearly signaling that regional center-issued or affiliated loans do not meet the “at-risk” capital requirement and will likely lead to denial.

By securing independent financing and maintaining a fully documented source-of-funds trail, investors can avoid preventable risks and protect their immigration timelines.

Advisory Services Provided by U.S. Visa India Services

At U.S. Visa India Services, we assist investors in navigating the EB-5 process with clarity and compliance-focused guidance. Our team supports:

Our advisory approach is independent, investor-focused, and transparent, ensuring that clients are positioned to meet USCIS requirements without avoidable risk.

If you are considering an EB-5 investment and want to review your funding structure or project options, we can arrange a confidential consultation.