EB-5 Q&A:Why does USCIS state that EB-5 “investment capital cannot be borrowed

Answer:

There is obviously some confusion.  Investment capital can have been borrowed.  Capital means cash, equipment, inventory, other tangible property, cash equivalents and indebtedness secured by assets owned by the alien entrepreneur, provided that the alien entrepreneur is personally and primarily liable and that the assets of the new commercial enterprise upon which the petition is based are not used to secure any of the indebtedness.  Thus, investment capital can be borrowed so long as the alien entrepreneur is personally and primarily liable and that the assets of the new commercial enterprise upon which the petition is based are not used to secure any of the indebtedness.