EB-5 Investor RequirementsEB-5 Program

Common Funds for Investors to Use in the EB-5 Program

JEREMY SHACKLEBy
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One of the most difficult requirements for applicants of the EB-5 Immigrant Investor Program to satisfy is the source of funds requirement. Investors must prove in their I-526 petition that all of their EB-5 capital was acquired from legal sources. Gathering the necessary documentation can be a long and dreadful process, so it is helpful to know some common sources EB-5 investors use.

The minimum that an EB-5 applicant must invest depends on whether or not their project is in a targeted employment area (TEA). The minimum investment for projects in a TEA is $900,000 and $1.8 million for non-TEA projects. It is important to note that EB-5 applicants do not need to have the entire amount available in liquid funds from the beginning. Many applicants sell properties and other assets to acquire capital for their investment.

Here are a few common sources investors use for EB-5 capital:

  • Wage and salary earnings
  • Revenue from a business
  • Inheritance money
  • Donations from family
  • Investments in stocks, retirement funds, and other assets
  • Sale of property and other assets
  • Loans from friends, family, a financial institution, a business, or other sources
Gifts are a very common source of funds, especially for young investors. Often, parents fund their child’s investment to allow them to pursue U.S. permanent residency through the EB-5 program. This is especially attractive to anyone hoping to study at a university in the United States, since EB-5 visa holders may be eligible for in-state tuition savings, depending on the college they choose to enroll in.

Many EB-5 investors use a combination of these sources to obtain enough funds for their investment. The difficult part can be proving that they came from lawful sources, a process that can significantly delay an investor’s EB-5 journey. Speaking with an immigration lawyer familiar with the EB-5 program can be a major help in determining the best funds to ensure an easy and stress-free EB-5 process.