What types of funds can a potential EB-5 investor use for the EB-5 Program?
Are there restrictions on the types of funds that qualify for the EB-5 Program?
A potential investor may use any type of fund as long as he or she can provide documentation that the funds came from lawful sources.
Examples of the types of funds that can be used for the EB-5 Program:
Inheritance may be used if documents can prove that the inheritance was derived from lawful sources of the funds.
Earnings from the sale of real estate, businesses, or personal property
Provide documents and evidence of the sales.
An employee can use their earnings as their funds for the EB-5 Program. They should present evidence from their employer and payroll documents to show that their funds came from their employment.
These loans must be from recognized financial institutions and they must be secured with collateral from personal property. The collateral used to secure the loans should be worth more than the amount of the loan. An EB-5 applicant will need to copies of the loan agreement.
While some children qualify for the EB-5 Program under their parents, many do not. For a child to qualify they must be under the age of 21 and not married. Therefore, those children that do not qualify need an alternative way to secure U.S. citizenship. One common way is for parents to gift their children the funds so that they can apply to the EB-5 Program under their own name. EB-5 applicants who use gifts to fund their projects must prove the lawful source of funding. They can do this by identifying the donor of the gift and showing that the funds were lawfully earned by the donor.
As long as the lottery occurred in a jurisdiction where lotteries are legal, then there is no issue with using lottery earnings for the EB-5 Program.
Investors have many options when it comes to the types of funds they can use for the EB-5 Program. No matter which option an investor chooses, however, they must always submit proof that the funds were obtained legally.
Investors can use funds from a variety of sources for the EB-5 Program as long as they can provide evidence showing that these funds came from lawful sources. The more documentation an investor has, the easier and faster it will be for them to go through the EB-5 process.
For more information on sources of funds, send us a message.