The EB-5 category is for investors who are willing to invest $1.8 million into a business in a non- targeted employment area or $900,000 into a targeted employment area. To qualify for the visa, a prospective investor’s proposed business plan must be able to create at least 10 full-time jobs for the eligible U.S workers.
If you have sufficient financial resources, the EB-5 investor program could be the best pathway to live in the United States and relish the American lifestyle. However, the trick is to show the source of eligible funds as it should come from legal means only. Prospective investors must prove that their acquired financial funds are lawful and are available to be placed into the investment project. The primary objective of this exercise is to show that the investor is “the legal owner of the capital invested and has obtained the capital through lawful means,” as per the USCIS Policy Manual.
To do so, investors in their initial EB-5 petition (Form I-526) can include supporting documents in favor of the source of funds obtained that they are willing to invest in a project. This process is known is EB-5 Source of Funds.
Apart from showing the authenticity of your investment funds, you must also reveal the details of how the funds are accumulated at the time you earn them until they are deposited to the EB-5 company’ account. This process is known as EB-5 Path of Funds and is often underestimated by the prospective investors.
The common source of EB-5 funding for real estate is through presenting any purchase or sales contract, rental income, mortgages, or bank statements. In this case, USCIS might ask you to proof that the property was originally purchased with lawfully obtained funds.
Another common source for an EB-5 funding is earnings from employment. To demonstrate your lawful earnings you can provide multiple documents related to your tax return for a few years. Other documents you may need are pay slips or a letter from your employer verifying your job duties and salary.
If you have received gifts from an individual, then you can easily showcase them as funds for your EB-5 investment. In this case, all you need to do is enclose a signed declaration from the party who had gifted you the funds. The statement should mention that there is no expectation for the beneficiary of the gift to repay the funds.
Loans are also one of the commonly used EB-5 source of funds. There are two types of loans that qualify under the EB-5 program. They are-
- loan issued by an institutional lender;
- Loan issued by an individual.
The loan obtained by you must be fully secured and must not be secured by the assets of the EB-5 business.
If the loan is not issued by the bank then supporting documents are mandatory to prove the source of funds.
For prospective investors, the source of funds is one of the most important aspects of the EB-5 visa. If you are planning to immigrate to the United States as an investor and ultimately obtain a Green Card, then you should carefully draft and arrange all required documents that explain your source of funds as well as path of funds.
Taking a guidance from a business visa immigration expert can help you better strategize the move and nail the process in the first go.
So, if you are interested in applying for an EB-5 visa or have some questions regarding the same, just get in touch with Abhinav Immigration Services. Our immigration experts would be happy to assist you.