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?
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.
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.
No, it must be gifted or based on a loan secured by your own assets.
This sounds like a gift and not a loan. All U.S. and foreign gift taxes must be paid and documented.
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.
No loan must be secured. A gift could work or a loan using a property or such with a value over the $500,000.
Typically, 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.
Your friend's funds should ideally be documented with his U.S. tax returns and bank statements, showing the accumulation of the funds.
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.
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.
It needs to be a gift. And to source it, your friend needs to provide documentary evidence of his income.
If the money is a gift, it may work. Consult with your immigration attorney for more details.
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.
