If you do not have $500K available in cash, you have a couple of options to fund your investment:
1) A Gift
Gifted funds are acceptable for EB-5 investment. Please note that the giftor may be subject to gift-tax. So long as the giftee resides in the US and the giftor resides outside the US, gift-tax can be mitigated by filing a 3520 form. You will need to show how those funds were accumulated by the giftor through their tax returns on your source of funds report. T. We always recommend consulting with a tax professional to determine the tax implications of fund transfers.
2) An Equity-backed Loan (Ex: Home Equity Line of Credit)
You can use a loan for your EB-5 investment so long as that loan is backed by equity or collateral. A commonly used loan for EB-5 is the home equity line of credit (HELOC)
A home equity line of credit is a loan in which the lender agrees to lend a maximum amount within an agreed period (called a term), where the collateral is the borrower's equity in his/her house (akin to a second mortgage).
A HELOC differs from a conventional home equity loan in that the borrower is not advanced the entire sum up front, but uses a line of credit to borrow sums that total no more than the credit limit, similar to a credit card. HELOC funds can be borrowed during the "draw period" (typically 5 to 25 years). Repayment is of the amount drawn plus interest. A HELOC may have a minimum monthly payment requirement (often "interest only"); however, the debtor may make a repayment of any amount so long as it is greater than the minimum payment (but less than the total outstanding). The full principal amount is due at the end of the draw period, either as a lump-sum balloon payment or according to a loan amortization schedule.
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