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What sources of funds are acceptable for EB-5?

Which of these funds can be arranged through any of the list sources: lending from a private lender (a friend or relative) securing agricultural land in India; lending from private lender (a friend or relative) securing residential property or land in India; bank loan on a property in India; U.S. credit card cash advances or personal loans; cash gift from parents. Should the person lending to the applicant prove sources of his/her funds?

Answers

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    Julia Roussinova

    Immigration Attorney
    Answered on

    The following options may be acceptable source of funds options if the loan proceeds are secured by the property owned by the EB-5 investor and the value of the property is equal to or more than the loan proceeds used for EB-5 investment: lending from a private lender (a friend or relative) securing agricultural land in India; lending from private lender (a friend or relative) securing residential property or land in India; bank loan on a property in India. U.S. credit card cash advances or personal loans are not acceptable because unsecured loans cannot be used as an EB-5 investment under current law. Cash gift from parents are great source of funds, assuming parents can provide proof that their gifted funds originally come from a lawful source of funds of the parents. Gifts must be properly documented and path of funds fully traced.

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    Dale Schwartz

    Immigration Attorney
    Answered on

    Lending from a private lender (a friend or relative) securing agricultural land in India is OK. Lending from private lender (a friend or relative) securing residential property or land in India is OK. A bank loan on a property in India is OK. U.S. credit card cash advances or personal loans are not OK. They must be a secured loan. Cash gift from parents is OK. Regarding if the person lending to the applicant proves the sources of his/her funds, yes.

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    Lynne Feldman

    Immigration Attorney
    Answered on

    Any may be workable. Funds from another person must demonstrate their source of funds and relationship to you.

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    Belma Chinchoy

    Immigration Attorney
    Answered on

    Unsecured loans are not OK, so private lending is not OK. Plus, USCIS thinks private lending equates money laundering, so no. A loan backed by land is OK, provided the investor owns the land. A collateral gift is OK (though the giftor must prove lawful source of funds).

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    Phuong Le

    Immigration Attorney
    Answered on

    This is a situation where the question is not whether it is possible. The focus should be what is the path of least resistance that will allow you to be approved with minimal headaches. Like you noted, there is a chance that whoever is the source of your funds will have to show how they lawfully acquired it. Even if could, I do not recommend you use credit card advances to fund $500,000 for obvious reasons.

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    Source of funds must be traced to its original source. Thus, if you are receiving gifts, the source of the person giving you the gift must be proven. As to the loan, while the USCIS has not explicitly prohibited the loan from an individual, they require that the person lending the money has acquired the loan money legally themselves. Thus, there have been more instances of denial by USCIS using this method and we advise our clients to obtain the loan from a bank or other financial institutions.

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    A Olusanjo Omoniyi

    Immigration Attorney
    Answered on

    All loan sources appear appropriate and legal. Also, unless any of the sources contravenes the Indian law, all sources should be deemed legal. In addition, it is routine that the sources of how the person lending money accumulated his or her money to own the property or money that is being lent to the EB-5 investor must be proven. Advisably, consult an EB-5 attorney on further analysis of your facts.

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    To answer what sources of funds are acceptable for EB-5, I answer each of the points below. For "lending from a private lender (a friend or relative) and securing by agricultural land in India," note that loans must be secured by the investor's own assets. It is acceptable if the investor owns 100 percent of the land. Regarding "Lending from a private lender (a friend or relative), securing residential property or land in India," it is acceptable if the investor owns 100 percent of the land. Regarding a "bank loan on a property in India," this is best if the investor owns the land. Regarding "credit card cash advances or personal loans," no. They must be secured by investor assets. Regarding a "cash gift from parents," this is an excellent option. And should the person lending to the applicant prove sources of his/her funds? The answer to this is always.

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    Abhinav Lohia

    Immigration Attorney
    Answered on

    An EB-5 investor can only take a secured loan that is by collateralizing an asset. It can be a house, agricultural land in India or anywhere else in the world. Loans can be taken from financial institutions, friends or family members. Credit card advances or non-collateralized personal loans will not work. A gift from parents is OK as long as they can prove the source of funds. Also, the person giving the loan will need to provide source of funds documents.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    Many assets that you have personal ownership and control of can become a lawful source of funds. Loans specifically must be secured by personal assets, and may require proof of the lender's source. It comes down to what is most appropriate for the individual applicant, which requires the guidance of an attorney.

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