The EB-5 Immigrant Investor Program gives foreign investors the chance to gain U.S. permanent residency by placing at least $800,000 into a U.S. business. However, to receive a Green Card, you must prove that your investment funds are legal.
This is because the U.S. government wants to make sure that the money used for the program does not come from illegal activities. To do this, each investor must clearly show and document the source and path of their funds. Failure to do so can lead to the USCIS denying your application, even if the business is strong and you meet the job creation goals.
In this article, we will explain what the EB-5 source and path of funds mean, so you know how to prepare for this important part of the EB-5 process.
Legal Source of Funds for the EB-5 Program
Documents USCIS Accepts for Path of Funds
EB5AN Can Help You Prove Your Source and Path of Funds
Legal Source of Funds For the EB-5 Program
During the EB-5 visa process, USCIS wants to be sure that your investment comes from a source that is lawful and not connected to criminal activities. As such, you have to prove how you earned or received the funds. Here are the most common legal means accepted as a source of EB-5 funds:
1. Employment Income
If your funds come from your salary, wages, or bonuses earned from working a job, you will need to provide the following:
- Employment history and income.
- Name of your employer.
- Records of salary payments.
- Tax returns for the last several years to confirm your reported income.
- Bank records showing salary deposits.
2. Profits Earned From Your Business
Some investors use profits from businesses they own. In this case, you must prove that the business exists, earns legal income, and how you took profits out of the business for investment purposes. Necessary documents here may include:
- Transfer of funds from the business to your personal accounts.
- Capital source summary showing sale proceeds and how you acquired stock.
- Shareholder agreements or ownership certificates.
- Company tax returns.
3. Inheritance or Gifts
Some investors receive funds from family or friends. USCIS accepts money from gifts or inheritance, but you must prove that the original source of the money was legal.
For inheritance, you will need:
- A copy of the will or inheritance letter.
- Proof of relationship to the deceased.
- Documents showing that the inherited money came from a legal source.
For gifts, you must include:
- A gift letter signed by the person who gave you the money.
- Documents proving how the giver got the funds.
- Records of the money transfer from the giver to you.
4. Loans
EB-5 investors may use loans, but only if it is secured by the investor’s personal assets. To use a loan, you’ll need to provide:
- A signed loan agreement.
- Proof of collateral, such as property documents or asset valuations.
- Documents showing legal acquisition of the asset used as security.
- Bank statements showing the disbursement of loan funds.
- Bank records showing that the loan amount was transferred to your account.
- Evidence of the lender’s lawful source of funds.
Unsecured loans are also allowed, as long as they are lawfully obtained and the borrower is personally liable for repayment, as clarified in the Zhang case.
Documents USCIS Accepts for Path of Funds
Once you prove the source of your funds, you must show a step-by-step record of the path of funds. This term describes the journey of EB-5 capital from its initial source to the point they are deposited into the escrow account or the business account of the NCE. Here’s what you will typically need to show your full path of funds:
1. Bank Statements
Bank statements are the most basic documents for showing the path of funds. You should include:
- Bank statements from the time the funds were received to the time they were transferred to the EB-5 investment.
- Bank records from other accounts if the funds were moved between different banks.
- Records from accounts of gift-givers or loan providers if the money came from someone else.
2. Transaction Records
In addition to bank statements, transaction receipts or payment confirmations help support your case. These may include:
- Wire transfer receipts.
- Screenshots or emails showing completed transactions.
- Deposit slips.
- Receipts from banks or money exchange services.
3. Foreign Transfers
If you moved funds from another country to the U.S., you must explain and prove each step of the transfer. This may involve:
- Outbound transfer records from your home country.
- Inbound transfer records from your U.S. bank.
- Currency conversion receipts if the funds were converted from a foreign currency to USD.
Some countries have strict rules about moving large amounts of money abroad. If your country has such rules, include proof that you followed all local laws and banking procedures.
EB5AN Can Help You Prove Your Source and Path of Funds
The EB-5 program requires more than just capital investment. You must prove that your funds came from legal sources and were moved in a clear and traceable way for your petition to be approved. Showing the source and path of funds is not always simple, however, working with professionals makes the process much easier.
The EB5AN team understands what USCIS looks for in EB-5 petitions. With more than a decade of experience, we have supported over 2,700 families in preparing their documentation and achieving Green Card approval.
Book a free call with our expert team today to make sure your EB-5 paperwork tells a complete and valid story.