What are the requirements for transferring gift money for EB-5?

Using gift money for an EB-5 project is one of the acceptable means of funding. However, there are a few guidelines that need to be followed: showing that the fund is legitimately earned by providing information on how the money was earned; and there may be a need to show that the laws of the relevant jurisdiction are also complied with by your parents. Also, be aware that the regional center you choose to deal with will also ask any of these of questions and more just to ensure that you and the regional center are in compliance with the law. Advisably, talk to an EB-5 attorney who can ensure that all the right issues are addressed before proceeding.

It is better for the gifted money to come to your account first and then you wire the fund to a regional center.

We usually suggest sending the money to your bank account and having a document drawn up from your parents that they are gifting the money to you. You will still have to show the lawful source of funds and how your parents earned the money they are gifting to you.

Your parents should not directly transfer the funds into the escrow account as that will make it difficult for you, the investor, to demonstrate that you have possession and control of the investment funds.

It used to be that the fund has to go through the investor''s account, before it can be transferred into the regional center''s escrow account. That is no longer the case. Under current USCIS policy, either way should be fine as long as it is clearly marked as your investment. The requirements for a gift money transfer is not much different from other forms of EB-5 source of fund transfers.

The person submitting the I-526 petition must be making an investment of personal investment funds. Therefore, even funds obtained as gifts must be transferred from the EB-5 investor''s personal account to the project. Of course, there is much more to the authentication of the source and transfer of funds than that, so retaining EB-5 attorneys is a crucial part of the process.

They can either wire the funds to you or pay the regional center directly. The issue is that you will have to show where you got the money from and how your parents earned the money.

We normally prefer our clients to receive the funds from the parents and then transfer to regional center projects as an investment for clearly tracking the source of funds trails.

The money should be wired to your account. You will subsequently wire the money to the project. Along with a complete source of funds that your attorney will prepare - a gift affidavit signed by your parents should also be included.