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
Immigration attorneysBased 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
Immigration attorneysNo, it must be gifted or based on a loan secured by your own assets.

Salvatore Picataggio
Immigration attorneysThey 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
Immigration attorneysThis sounds like a gift and not a loan. All U.S. and foreign gift taxes must be paid and documented.

Marko Issever
EB-5 Broker DealersUnfortunately, 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
Immigration attorneysIf the money is a gift, it may work. Consult with your immigration attorney for more details.

Belma Demirovic Chinchoy
Immigration attorneysIt needs to be a gift. And to source it, your friend needs to provide documentary evidence of his income.

Charles Foster
Immigration attorneysYou 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
Immigration attorneysThe 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
Immigration attorneysTypically, a loan must be secured by the investor's property. The description you provided sounds like a gift and it won't 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
Immigration attorneysYour friend's funds should ideally be documented with his U.S. tax returns and bank statements, showing the accumulation of the funds.

Robert West
Immigration attorneysNo 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
Immigration attorneysYes, 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.
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