How can I use borrowed money from a friend for my EB-5 investment? - EB5Investors.com

How can I use borrowed money from a friend for my EB-5 investment?

A very good friend of mine who is a U.S. citizen is willing to give me an unconditional, unsecured, interest-free loan without the expectation of any gain to support my EB-5 application. Is this acceptable? What documents do I need to provide to prove the source of funds?

Answers

Ed Beshara

Ed Beshara

Immigration Attorneys
Answered on

Based on the facts you present, it is advisable for the friend to gift you the funds. On this basis, your friend would have to supply the lawful source of the funds gifted to you. Otherwise, based upon the current law, your friend can loan you the funds. However, the loan will be based upon your collateral assets and proof that you have the financial means to pay the loan.

Bernard P Wolfsdorf

Bernard P Wolfsdorf

Immigration Attorneys
Answered on

No, it must be gifted or based on a loan secured by your own assets.

Salvatore Picataggio

Salvatore Picataggio

Immigration Attorneys
Answered on

They need to affirm, in writing, the nature of the gift. A lot more goes into the EB-5 fund tracking. so please consult with an experienced attorney.

Daniel A Zeft

Daniel A Zeft

Immigration Attorneys
Answered on

This sounds like a gift and not a loan. All U.S. and foreign gift taxes must be paid and documented.

Marko Issever

Marko Issever

EB-5 Broker Dealers
Answered on

Unfortunately, this is not a valid source of funds, as you have presented your case. If your friend is willing to gift you the funds, then it should be OK as long as the funds he is gifting you can be sourced. He could also lend you the funds on a collateralized basis. USCIS would then want to source the way you obtained the collateral you are pledging to your friend. It is possible that, since your friend is not a lending institution, the funds, he would be lending you, need to be sourced as well.

Hassan Elkhalil

Hassan Elkhalil

Immigration Attorneys
Answered on

If the money is a gift, it may work. Consult with your immigration attorney for more details.

Belma Demirovic Chinchoy

Belma Demirovic Chinchoy

Immigration Attorneys
Answered on

It needs to be a gift. And to source it, your friend needs to provide documentary evidence of his income.

Charles Foster

Charles Foster

Immigration Attorneys
Answered on

You need traditional loan documents like a promissory note. It is much better practice for the note to be secured by property of equal value.

Dale Schwartz

Dale Schwartz

Immigration Attorneys
Answered on

The immigration service says that it will not accept money that was borrowed unsecured. Best if you can secure the loan. At least one court has held that the immigration service is wrong about this, but that case is up on appeal.

A Olusanjo Omoniyi

A Olusanjo Omoniyi

Immigration Attorneys
Answered on

Typically, a loan must be secured by the investor&#39s property. The description you provided sounds like a gift and it won&#39t qualify under the EB-5 source of funds for investment purposes. Advisably, consult an EB-5 attorney on how to best address this issue before you proceed further.

Irina A. Rostova

Irina A. Rostova

Immigration Attorneys
Answered on

Your friend&#39s funds should ideally be documented with his U.S. tax returns and bank statements, showing the accumulation of the funds.

Robert West

Robert West

Immigration Attorneys
Answered on

No loan must be secured. A gift could work or a loan using a property or such with a value over the $500,000.

BoBi Ahn

BoBi Ahn

Immigration Attorneys
Answered on

Yes, that is acceptable source of funds. You should have a fully executed gift document/letter to document the gifting/transaction. The gift giver will have to provide documentation of the legal/lawful source of his/her funds as well.

DISCLAIMER: the information found on this website is intended to be general information; it is not legal or financial advice. Specific legal or financial advice can only be given by a licensed professional with full knowledge of all the facts and circumstances of your particular situation. You should seek consultation with legal, immigration, and financial experts prior to participating in the EB-5 program. Posting a question on this website does not create an attorney-client relationship. All questions you post will be available to the public: do not include confidential information in your question.