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How can we prove EB-5 source of funds with transfer restrictions in place?

Our home country limits the amount of money we can invest outside. What are some ways we can work around this restriction? One option we are considering is this: suppose that we already have a house in the United States. We then make a loan from a U.S. bank, with the house as our collateral, and use the loan to invest in the EB-5 program. Would this route meet EB-5 source of funds requirements?

Answers

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    Ed Beshara

    Immigration Attorney
    Answered on

    An experienced EB-5 immigration attorney will be able to advise you on the USCIS acceptance of certain transfer models for foreign national personal funds being sourced and transferred. You can use the loan proceeds, as your personal investment funds, from your house in the United States being used as collateral. However, you will have to authenticate the lawful source of funds that were used to purchase the house. You will also have to show how you have the financial means to repay the loan.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    This route may well work, but you will need to document the lawful source of funds for the purchase of your house in the United States. You should speak with an experienced EB-5 immigration attorney to find out more about how to document your source of funds and path of funds to the United States.

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    Oliver Huiyue Qiu

    Immigration Attorney
    Answered on

    The house mortgage model could work, but you will also be required to prove that the money that was used to purchase the house comes from a lawful source. USCIS' view on fund transfers by certain countries is quite open; as long as the trail can be established, the practice to route the funds through multiple sources is acceptable.

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    Steffanie J Lewis

    Immigration Attorney
    Answered on

    The loan from the bank on a house in the United States would be available to make the EB-5 investment, provided the investor owned the house. However, the investor would need to trace the funds used to purchase the U.S. house unless the house had been held for years prior to obtaining the mortgage.

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    John J Downey

    Immigration Attorney
    Answered on

    That process could work, but you still need to show the source of funds for the real estate purchase.

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    Julia Roussinova

    Immigration Attorney
    Answered on

    You may consider help of friends or relatives to wire funds for the benefit of the EB-5 investor and track same with detailed documentation to work outside the restrictions. It is also possible to utilize the loan scenario against the home in the United States. You must be able to demonstrate the original purchase was made with a lawful source of funds and provide loan documentation as well as the appraised value of the home. You should consult an experienced EB-5 immigration attorney to assist you.

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    Many investors from the countries where they have currency exchange restrictions seek the help of friends and families to wire for them. For example, the investor will wire to several friends and families and then these people will in turn wire to an EB-5 investment account in the United States under the investor's name. These transactions must be shown on the bank account statement from the investor to his friends and then out from the friends' accounts to U.S. account, again being tracked inbound and outbound on their bank statements. As the person's name and bank account must be prominently shown on these transactions for tracking purposes, you will need their consent and cooperation. Regarding utilizing the real estate you own in the United States, it is possible to obtain a loan from that as long as you show that you have purchased that real estate with legally obtained funds at the time of the purchase along with the current appraisal and loan documents.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    That could be a possibility, though you should retain EB-5 immigration counsel to assist you. There are other options as well which can be explored with an attorney.

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    Robert Cornish

    Securities Attorney
    Answered on

    Any questions of this nature are going to have to be coordinated with U.S. counsel experienced in sanctions regimes and foreign asset transfer. You may also have issues with U.S. taxes once the money is delivered here if you already own property here in the United States.

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    Ian E Scott

    Immigration Attorney
    Answered on

    Any legal way of providing the funds meets the source of funds requirement for EB-5. There is not a requirement that the money has to come from outside of the United States.

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