Difficulties in getting Debt Financing with a US visa

searcher profile

November 26, 2024

by a searcher from Erasmus University Rotterdam in Singapore

I've heard that securing debt financing for a company acquisition is significantly more difficult if the searcher holds a US visa rather than a green card or citizenship. Is that true?

If so, wouldn’t this make the search process in the US far less appealing for non-permanent US residents? Any ways around?

0
16
79
Replies
16
commentor profile
Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
We are a Commercial Loan Brokerage Shop with over 500 unique funding partners and over 30 years of commercial lending experience. The only way I see individuals buy small businesses without being a green card holder or US Citizen or being a large international fund doing a very large transaction, is using the SBA 7A loan program and partnering with a US citizen or green card holder. The SBA 7A loan program will allow non-US citizens to own up to 49% of a business so long as 51% of the business is owned and controlled by US citizens or green card holders.

Outside of the above option, just about all commercial banks and private lenders we work with will just not consider non-US citizens. They do not understand the legal risks behind it. I just want to be honest up front. Unless you have a deal large enough to be in the true investment banking world working with a large international bank that has the legal expertise, then the options are slim to none.
commentor profile
Reply by an investor
from Northeastern University in Denver, CO, USA
To echo the above, it is incredibly difficult to get lending but the crux of the issue is post-close immigration challenges. I don't know what visa you're on, but in most cases it's likely to be a non-immigrant visa which means banks don't have recourse and a way to hold you accountable.

Even if you close on a business, you'll still need to go through an adjustment of status or get a H-1B. The former being long and arduous with more challenges ahead and the latter being a lottery with conditions becoming harder with the incoming administration.

Consult an immigration attorney and partnering with a U.S. citizen is your best bet.
commentor profile
+14 more replies.
Join the discussion