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Where can EB-5 investment funds originate from?

If an EB-5 applicant owns above 95 percent stake in a U.S. subsidiary and the parent company abroad, can the funds from the U.S. subsidiary be used for an EB-5 application through a regional center? Or must the funds come from a personal account? Where can EB-5 investment funds originate from?

Answers

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    Julia Roussinova

    Immigration Attorney
    Answered on

    As long as you can demonstrate that you have the right to receive these funds, they can be used for EB-5 investment. For example, if you receive dividends or salary from the subsidiary and can document this. You will also need to document the legal relationship between the U.S. subsidiary and the foreign parent, and what role you play in the U.S. subsidiary, and that you are legally authorized to receive funds.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    EB-5 investment funds must be personal investment funds. The source of personal investment funds can vary and, with the assistance and representation of EB-5 immigration counsel, can be authenticated and made part of an approvable I-526 petition.

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    John J Downey

    Immigration Attorney
    Answered on

    EB-5 funds may come from any legitimate source. You must explain in detail the source of funds. Many applications are asked for further evidence because the sources are not sufficiently defined. You should seek competent EB-5 counsel to help you prepare the source of funds explanation.

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    The only requirement for EB-5 investment funds is that they come from a legal source. There is no restriction that they come from a personal account. Thus, if you have 95 percent ownership in a company and you have the right to get those funds from the company and it could be clearly documented, then obtaining the funds from the company is acceptable. As the U.S. company is a subsidiary, you will also need to document the relationship between the parent and the subsidiary, and that you have a right to the funds from either company.

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    Robert Cornish

    Securities Attorney
    Answered on

    Yes, the funds can come from that source, but they must ultimately be owned by you in your name to fund the EB-5 investment. That means of course that if you are cashing out securities you may have capital gains issues, etc. You may wish to speak with a financial adviser on doing a swap on your stock.

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    Lynne Feldman

    Immigration Attorney
    Answered on

    As long as they pay out the funds to him first, then they are his personal funds.

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