How To Gift EB-5 Funds

Here's how to gift EB-5 funds, so that investors can take advantage of the Regional Center Program.

The EB-5 Program offers high-net-worth foreign individuals the opportunity to invest in a new commercial enterprise in the U.S. And when the investment successfully creates a requisite number of jobs for qualified U.S. workers, the investor and his or her family receive green cards.

The minimum amount required to invest in the EB-5 Program is $500,000. Many people who would like to invest in the EB-5 Program may not have the funds to invest on their own. When this is the case, family members often gift EB-5 funds to their siblings or children.

The EB-5 process can be complex and any misstep could cause a delay in receiving I-526 petition approval. The EB-5 Program is very concerned about fraud. Therefore, they look at each investor's source of funds very closely to ensure that the sources are lawful. To ensure that the process of transferring funds goes smoothly, here's how to gift EB-5 funds.

  1. When receiving a gift of EB-5 funds, it's important that the funds be transferred to a personal account with the investor's name on it. The family member(s) can write a personal check or make a wire transfer to this personal bank account. It's important that at the time of the transfer, that there is declaration stating that the funds are being gifted. This transfer of funds to a personal account must occur before the investor takes the funds and puts it into escrow for an EB-5 project.
  2. This first step shows that there was a gift made to you for the purpose of investing in the EB-5 Program, but it doesn't show that the funds are lawful. The next step, then, is to provide proof that the funds came from lawful sources. This will require the family member(s) to provide evidence of how the funds were earned or where the funds came from.

An immigration attorney can help the investor trace the source of funds and advise the investor on what documentation is best to submit with their application to show the lawful sources of funds. Without proper evidence, USCIS may deny or delay your I-526 petition.

 

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