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

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:

• The investor is personally liable for the loan,

• The loan is secured by the investor’s personal assets, and

• The financing is independent from the EB-5 project or regional center.

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:

Impact on Investors

A denial can be costly:

• USCIS filing fees are non-refundable

• The invested capital may not be recoverable

• The immigration process must restart — causing delays that are especially critical for Indian nationals who already face backlogs

• Legal appeals rarely succeed if the loan structure itself is non-compliant

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:

• Avoid loans sourced from regional centers or project developers

• Prefer mainstream or private financing where you are the borrower

• Maintain complete records: loan agreements, collateral documents, bank statements, remittance records

• Consult qualified EB-5 counsel before committing funds or signing agreements

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:

• Evaluation of project and fund structures to avoid denied funding models

• Coordination with independent financial institutions for compliant loan options

• Source-of-funds documentation preparation and review

• Attorney coordination and case oversight from filing to adjudication

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.