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How do I use gifted money as EB-5 capital?

I am from India and my brother is a citizen of the U.S. He is willing to take loans from a bank secured by his property in the U.S. and gift the loaned money to me for EB-5. What source of fund documents do I need in this case to apply for EB-5?

Answers

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    Barbara Suri

    Immigration Attorney
    Answered on

    It is my opinion that you will need to show documentation that the funds were gifted to you (no strings attached); as well as the origination of the funds (in this case, bank documents).

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    Dale Schwartz

    Immigration Attorney
    Answered on

    You will need to show how your brother acquired his property that he put up for the loan. A deed of gift will have to be drawn up as well.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    Your brother will need to provide evidence of the lawful source of funds to purchase the property that will serve as collateral for his loan. You will need a gift letter and proof that any required U.S. gift tax was paid. You also will need to show the path and flow of the funds from the bank loan to your brother?s account and from his account to your bank account. Then, you need to trace the funds to the bank account for the new commercial enterprise ("NCE").

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    Daniel A Zeft

    Immigration Attorney
    Answered on

    The I-526 petition includes documents which are evidence of the source of funds. The documents evidencing the source of funds can be involved. You need to retain an immigration attorney to prepare your I-526 petition.

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    BoBi Ahn

    Immigration Attorney
    Answered on

    A signed gift instrument along with copies of the loan document of your brother to source the funds to a legal/lawful origin.

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    A Olusanjo Omoniyi

    Immigration Attorney
    Answered on

    Gift is allowed as a legal source of fund. However, in the scenario described be on notice that the donor (your brother in the instant case) must be ready and willing to document how he obtained the gift in detail. The donor must show all loan process documentation including but not limited to, how he applied and secured the loan, asset(s) or collateral used in securing the loan, and other related information and documentation typically associated with bank loan and must show he had complied with all rules and regulations.

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    Charles Foster

    Immigration Attorney
    Answered on

    If your brother gifts you sufficient capital in order to make an EB-5 investment, you would demonstrate that your brother had made such gift by showing a transfer of the funds to you into your account and how those funds were ultimately transferred into the project. Your brother in turn would have to demonstrate the sources of the funds, which in this case would be the bank loan secured by property in the U.S.

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    Ed Beshara

    Immigration Attorney
    Answered on

    Your brother gifting you the investments funds will have to provide information and documentation to prove and authenticate his lawful source of funds which were gifted to you.

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    Belma Chinchoy

    Immigration Attorney
    Answered on

    This is not an OK source of funds.

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    Julia Roussinova

    Immigration Attorney
    Answered on

    A gift would generally be documented with gift declaration and source of funds documents for your brother, including loan origination documents and documents evidencing he had originally lawfully acquired personal assets used as collateral to secure the loans. Your brother will also be required to file a US federal gift tax return (Form 709) to report the gift and will use his lifetime gift exemption amount and applicable annual exclusion amount to avoid gift tax. He will need to consult a tax attorney or other tax professional regarding same. You should hire an experienced EB-5 attorney who will guide you through the process, properly prepare the documents, and prepare your I-526 petition to USCIS.

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    Lynne Feldman

    Immigration Attorney
    Answered on

    You will need his tax returns, loan documents and then a notarized gift letter as a minimum. They will want to know where your brother earned the money for the investment.

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    Mitch Wexler

    Immigration Attorney
    Answered on

    You can use gifted money from your brother at this time as long as you can source the money used by your brother to acquire the property. Please know that one of the components in at least one of the bills being discussed by Congress would restrict the relations an EB-5 applicant can take a gift from for EB-5 purposes.

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    Tomas Resendez

    Immigration Attorney
    Answered on

    It is possible to use gifted money from your brother as capital for Eb5 investment. You would need to prove that the loans that he took are guaranteed by his properties. For specific documents, you should consult an immigration lawyer with EB5 experience that is knowledgeable about the banking processes in India.

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    Nelson Lee

    Immigration Attorney
    Answered on

    Gifts from family members can meet EB-5 requirements so long as the donor can provide sufficient documents to demonstrate how he/she got the gifted funds. In your case, your brother will need to demonstrate how he acquired the funds to purchase the property that is being used as collateral for the bank loan. If he used his accumulated income to purchase the property, he needs to provide proof of his job(s): income statement from his employer(s), bank records showing regular deposits of his salary, tax returns etc. You will also need to provide proof of property ownership, an appraisal, all of the loan documents from the bank, and records showing how the loan proceeds were transferred from your brother?s bank account to yours. A gift affidavit confirming that the funds are being gifted to you should also be included in your I-526 submission packet. It is advisable for you to consult with an experienced EB-5 attorney to help you compile the necessary documents.

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    If the investment funds are all being gifted to you by your brother, he must show the source and path of funds, not you. The only thing you need to show is that he gave you the funds and that you received it, or the EB-5 business or project has received his funds on your behalf as the investor.

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    Austin Kim

    Immigration Attorney
    Answered on

    You will need to provide the source of fund documents on how your brother acquired his property, along with the loan documents.

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    Michael A Harris, Esq

    Immigration Attorney
    Answered on

    Since your brother plans to gift you the funds based on the loan proceeds secured by his property, we will need to verify: (1) document his lawful source of funds utilized to purchase the property and (2) we should also confirm what percentage of ownership that your brother owns as there are USCIS rules regarding using the proceeds of loans for EB-5 investments. I recommend you hire a competent and experienced EB-5 lawyer to further assist you and advise.

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