What are the EB-5 source of funds requirements for domestic capital? - EB5Investors.com

What are the EB-5 source of funds requirements for domestic capital?

In a direct EB-5 context, if an entity has both EB-5 investors AND domestic (U.S.) investors, what are the source of funds requirements for the capital from U.S. persons? Do the investment funds from the U.S. investors have to be sourced?

Answers

Ed Beshara

Ed Beshara

Immigration Attorneys
Answered on

The I-526 petitions are filed by foreign nationals and their source of funds have to be authenticated and the corresponding documents are filed with the I-526 petition. Of course, the U.S. citizens who have invested in the U.S. business do not have to show documents authenticating the source of their investment funds, but their source should be from lawful sources.

Julia Roussinova

Julia Roussinova

Immigration Attorneys
Answered on

There are no requirements for domestic (non-EB-5) capital as long as non-EB-5 funding is otherwise legitimate and available for the project.

Fredrick W Voigtmann

Fredrick W Voigtmann

Immigration Attorneys
Answered on

There is no requirement to document the lawful source of funds from non-EB-5 investors. The USCIS will want to see evidence that the additional non-EB-5 funding is available and likely to materialize because it wants to make sure the overall project is viable. Typically, the non-EB-5 capital is from a bank or other financial institution where it is clear that the funds are legitimate. There could be a situation, however, where USCIS might request additional evidence if the additional funding is coming from a less traditional source and it is not clear if/when or how that capital will be available to the project.

John J Downey

John J Downey

Immigration Attorneys
Answered on

USCIS has no interest in the source of funds from U.S citizens. That is not to say that the SEC may take an interest, but USCIS is only concerned with foreign sources of funds.

Denyse Sabagh

Denyse Sabagh

Immigration Attorneys
Answered on

Typically, the Immigration Service requests evidence of legal source of capital from the foreign investor. However, if the Immigration Service has concerns about the investment and the project, it could ask for additional information.

Jinhee Wilde

Jinhee Wilde

Immigration Attorneys
Answered on

EB-5 does not apply to U.S. investors as this is an immigration benefits program. If you mean, a foreign person who is currently residing in the United States and not a person who already has a permanent residency or U.S. citizenship, then the Source of Funds tracking would be the same - income verified by tax returns, assets that could be proven to be purchased/acquired with legitimate income or gift, etc.

Rachel Lew

Rachel Lew

Immigration Attorneys
Answered on

There is no capital source of fund requirement for domestic U.S. investors.

Vaughan de Kirby

Vaughan de Kirby

Immigration Attorneys
Answered on

All funds must be shown to be derived from a lawful source whether foreign or domestic.

Robert Lee

Robert Lee

Immigration Attorneys
Answered on

Technically they could ask, but they generally only focus on the foreign investor.

Lynne Feldman

Lynne Feldman

Immigration Attorneys
Answered on

No they do not.

Ian E Scott

Ian E Scott

Immigration Attorneys
Answered on

The source of funds only has to do with the source of funds from the investor who is getting the green card.

Salvatore Picataggio

Salvatore Picataggio

Immigration Attorneys
Answered on

USCIS will want to know some details about non-EB-5 capital, but not nearly to the same degree as for the EB-5 investors. If you received other loans or equity, a description of those sources and a loan agreement (for example) may be helpful.

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