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What types of funds are appropriate for the EB-5 Program?

What kinds of funds qualify for the EB-5 Program? For example, can any percentage of $500K investment amount can be from loans or borrowed money? What documentation can I provide to prove these loans were from legal sources—even if the money was given as a gift? Would lottery winnings work for the EB-5 program? Any guidance you can provide would be much appreciated!

Answers

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    Answered on

    Loans secured by personal assets, savings, distributions, lottery winnings, the sale of personal property and gifts can all be authenticated for EB-5 investments. Work with an immigration attorney who can put together the package of documents necessary for an approvable petition.

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    Answered on

    The authentication of the lawful source of personal funds for the EB-5 investment can be from a loan or a gift. Your assets such as real estate can be used as collateral for the loan. You will have to show how you purchased the real estate and how you can afford to repay the loan. The person making the gift will have to show how the funds were derived from a lawful source.

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    Answered on

    You may use funds from any lawful source, including earnings, the sale of real estate or other property of the EB-5 investor, inheritance, loans, gifts or winnings. Gifts must be properly documented and traced from the donor to the donee. If winnings are considered lawful in your jurisdiction, they may be used if properly documented. Loans must be secured by the collateral owned by the EB-5 investor personally with the value of the collateral (such as real estate) equal to or greater than the amount of the loan proceeds.

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    Answered on

    Yes, a percentage of your $500,000 investment can be a loan or borrowed money but only if said amount is secured by a property of equal value. If the money is a gift, you would have to establish a lawful source of funds. The documentation showing the lawful source of funds depends upon the nature of the funds. If it based upon the sale of a property and the appreciation of the property, that would be one source. If it is through employment, it would be through evidence of your savings and documentation from your employer. If it is from the sale of a business, that would be evidence of same. If you can document lottery winnings from the official source, that would be sufficient as well.

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    Answered on

    EB-5 funds can come from any lawful source and can be from multiple lawful sources. If lotteries are legal in the jurisdiction where they occurred, then the winnings could be used for EB-5. A loan must be properly secured with collateral (that was lawfully obtained) and the investor must be personally and primarily liable to pay the loan back. A gift will work as long as it is properly documented (from donor to recipient) and the donor provides the lawful source of the gifted funds.

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    Answered on

    Gifts, loans and funds earned from lottery can be used for the EB-5 petition as long as their sources are legal. With regards to loan, the documentation should include information such as the identity of the lender and, if the lender is an individual, how the lender earned the money and his or her tax returns for at least in some cases the last three years, etc. If the money is a gift, you would still need to document the identity of the donor, how the donor earned the money and it must be legally earned. Advisably, consult an EB-5 attorney if further guidance is needed. Thanks.

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    Answered on

    You may use the loan proceed for EB-5 investment as long as the loan was obtained from a bank or other recognized financial institution secured by a collateral that you own. Thus, you should not borrow money from just a friend. Also, the legal source of purchasing the collateral you use for securing the loan must be shown. For example, if you are getting a mortgage on a building you own, you need to show when and how that building was purchased and whether you had the financial ability to pay for that building at that time. The lottery winning could be used, although I personally do not know of anyone doing so, as long as you show how you were entitled to receive the winning.

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    Answered on

    Lottery winnings could be used. For loans, the money must be fully collateralized by the borrower assets for the investment to be deemed at-risk. Almost any lawful source can be used: income, sale of property, inheritance, or a collateralized loan all work.

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    Answered on

    Most of these sources will work; we would just need to document each appropriately. For example, a gift from your parents can be documented with a Declaration from them.

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    Answered on

    100% of the funds can be loaned or borrowed money. If a loan, then it needs to be secured by your personal property. If a loan is not from a bank but from an individual, then you will likely need to show some source of funds from that individual. If a gift, then you need the source of funds from the person giving the gift. Lottery winnings are fine.

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    Answered on

    As long as the source of funds are documented and lawful, you are fine. Loans are fine as long as you provide the loan agreement. Gifts need to include a gift instrument and gift giver''s financial documents to show he/she had the funds to gift. Lottery winnings can also be used, as long as you can show proof of you winning the lottery.

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    Answered on

    You need to own the money. A loan will not work, but a gift will. Lottery winnings, if legal, will work.

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