Prospective EB-5 Investor: Source of Funds Eligibility Basics

Prospective EB-5 Investor: Source of Funds Eligibility Basics

2020/07/14 3:32pm

A prospective EB-5 investor must make an investment into a new commercial enterprise. The amount for an investment in a targeted employment area is $900,000, while an investment in a non-targeted employment area is $1,800,000.

In order to qualify for the EB-5 Program, investors must show that they can come up with the required funds and that these funds came from lawful sources.

Prospective EB-5 investors must be able to trace their lawful path of funds from when they acquired the funds to when they placed them into the investment project escrow. USCIS requires that prospective EB-5 investors show a “preponderance of evidence” meaning that the documentation must show that it is more likely than not that the funds came from lawful sources.

In order to show that the funds came from lawful sources, prospective EB-5 investors can present documentation as proof.

For real estate, EB-5 investors may need to present any purchase or sales contracts, mortgage documents, deeds, appraisals, rental income, and bank account statements.

For business ownership, EB-5 investors would show business registration documentation, ownership records, appraisals, accounting, or sales records.

For investments, EB-5 investors may show brokerage statements, retirement account statements, stock certificates, and tax returns.

For loans, EB-5 investors would need to show the source of funds documentation if the loan source was not from a bank. Documenting the collateral may be necessary.

For employment earnings, EB-5 investors would show W-2s, earnings statements, employment contracts, bank account statements, and records of deposits going back a few years.

For gifts, EB-5 investors would show a gift letter along with documentation of the sources of funds from the gifter.

For inheritance, EB-5 investors would show any relevant estate documentation.

This list is not an extensive source for documenting funds. Every EB-5 investor’s case is different and consulting with an experienced immigration attorney is highly recommended. This attorney can assist with collecting the required documentation as well as advising client’s on which sources to use for EB-5. Some EB-5 sources may be more complex to document than others. Sources of funds can, and often do, come from multiple sources, selecting the right ones can get investors one step closer to green cards.

Lastly, in addition to the minimum investment amount, a prospective EB-5 investor must also show that they have the funds to pay the additional administrative fees. These fees can range from $50,000 – $75,000 depending on the project.