Questions & Answers

What funds are eligible as a source of EB-5 investment?

A friend of ours in China would like to find out if the investment funds from a company bank account 100 percent owned by him, rather than funds from his personal bank account, would suffice as an investment of the requisite capital for EB-5 purposes? In general, where can the funds come from that will be used for an EB-5 investment?

Answers

• Fredrick W Voigtmann

  Immigration Attorney

  Answered on December 17, 2015

  Your friend should consult with an experienced EB-5 immigration attorney on the specifics of his source of funds. It is common for EB-5 investors from China to use dividends or loan proceeds from their companies in China to invest in EB-5 projects. Each situation is unique, so the types of documents required and how best to present the evidence will be something the attorney can advise on.

• Jinhee Wilde

  Immigration Attorney

  Answered on December 17, 2015

  If the investor owns and controls the company and has access to the company bank account, there is nothing wrong with funding the EB-5 investment from that account rather than from a personal bank account. The requirement is that the funds be from a legal source, not just from a personal account. Using the company money, however, needs to be backed by the fact that he has the authority to use the funds for his personal usage and the company has had enough income and funds to be sustained after he withdraws the funds from the account. He will need to provide the corporate documents, such as the ownership, registration, and several years of corporate tax reports as bare minimum.

• Robert Lee

  Immigration Attorney

  Answered on December 16, 2015

  Your friend can use the funds from the company as long as there is enough in the retained earning (profits) and equity. He would just need to issue himself a shareholder loan. Funds can come from anywhere as long as it is from a legal source.

• John J Downey

  Immigration Attorney

  Answered on December 16, 2015

  Any lawful source of funds are acceptable; his account from a business wholly owned by him will be acceptable.

• Bernard P Wolfsdorf

  Immigration Attorney

  Answered on December 16, 2015

  These funds may be useable, but still need to be traced to their source.