Documents Needed For EB-5 Source Of Funds

Here’s a look at what documents an EB-5 investor will need to provide to show their source of funds path. Without comprehensive proof, an EB-5 investor may be asked for more evidence, delaying their process, or worse, their petition may be flat-out denied.

Each investor’s case is unique and therefore it is imperative that they seek out advise from their EB-5 immigration attorney on what specific proof may be required, however, here is a basic overview of what they may expect so that they can more quickly prepare.

EB-5 applicants are rushing to prepare their I-526 Immigrant Petition for Entrepreneur because the EB-5 minimum investment amount will increase from $500,000 to $900,000 for targeted employment area projects on November 21, 2019. That’s less than 120 days away.

Proving source of funds is one of the main requirements to attain conditional permanent residency in the U.S. Conditional permanent residency can open up the doors to a better life for many foreign nationals and their families. They can benefit from top job opportunities and world-class schools.

Many EB-5 investors use a combination of sources of funds. Here are the common types of sources of funds used and what trail of documentation you may need to show for each source:

Income

Income from typical sources could include salaries or interest payments. An EB-5 investor must show proof going back as many years as necessary, if not more, to show proof of the entire investment amount.

Proof:

• Bank statements
• Tax Returns
• Employment Contracts

Gifts

Gifts can also include inheritance and personal loans.

-The EB-5 investor must show proof that the individual who gave the gift or issued the personal loan acquired those funds through lawful means such as those listed under income.

-If the EB-5 investor used funds from inheritance they will need to provide a death certificate and proof of relationship to the deceased.

Loan

Mortgage loans or shareholder loans can be acceptable if they are backed by property or stock that the EB-5 investor personally owns.

-An investor will want to that the funds used to purchase the property or stocks came from lawful sources such as income.

Sale of Assets

An EB-5 investor using the sale of assets such as a house must show that they were the sole owner of the property and that the funds they originally used to purchase the property came from lawful sources such as those listed under income or inheritance.

-The sale of a business can also be used for an EB-5 investment. For proof of funds an investor should show that they owned a lawful business. They can use earning and bank statements as evidence that the business made as much as the investor claims it did. An investor will need to place the funds from the sale into a new bank account so that the funds come from the investor and not the business.

-An EB-5 investor could also sell securities or their retirement fund to finance their investment. For the sale of securities the investor will want to show documentation showing that the sale was lawful and that the original funds used to purchase the securities came from lawful sources such as income. If using the sale of retirement funds, an investor will want to show that the funds used for the retirement funds came from lawful sources, that the contributions to the retirement funds add up, and that the withdrawal was legitimate.

For more information about showing EB-5 proof of funds send us a message or to get started on the EB-5 process fill out our free evaluation below.