Learn about the documentation to prove the origin of EB-5 funds
To use investment principal in the EB-5 Program, it must be shown that the investment was obtained legally and was not derived from criminal activity or attempted fraud. We show you the necessary documentation to prove the funds to be used.
The EB-5, or Immigrant Investor Program, is a type of visa that is granted to foreign investors who invest from $800,000 in a US company with certain characteristics.
To apply for permanent residence with this visa, the applicant must demonstrate that they have sufficient funds to pay for the investment and that they are admissible in the US.
As an investment applicant about to file your EB-5 case, you must ensure that your funds are obtained legally. This will protect you from certain problems that may arise in the US after approval.
If the funds were obtained illegally, they can be seized by the government and you will lose everything. So how do you know how to prove the legal origin of the funds?
How to prove the origin of funds in the EB-5 Program
One of the main tasks of the immigration lawyer in charge of an EB-5 case is to work on the documentation that will prove the legality of the origin of the capital to be used. Primarily to comply with USCIS regulations that establish the type of evidence an EB-5 investor must present, as applicable, to demonstrate that the capital was “obtained through lawful means”.
EB-5 investors who wish to prove their legal source of funds may do so by submitting documentation showing how they acquired the funds necessary for their investments. There are three main ways to prove the source of funds:
Documents from banks or other financial institutions
Documents from federal or state agencies showing income statements, capital gains tax statements, etc.
Bank statements
A recent account statement showing the source of the funds or a letter from a bank or other financial institution confirming that they are holding the investment funds for you
Pay stubs or income statements
Evidence that you have access to investment funds, such as pay stubs or income statements showing investment income or business profits.
In addition, the investor must show that they have been earning at least $250,000 a year for the previous two years or have a net worth of at least $1 million at the time they file Form I-526 (Immigrant Petition by Entrepreneur Foreign).
Process to obtain the Green Card in the EB-5 Program
The first step to apply for an EB-5 visa is to locate a project with the requirements established in the program. Then, the investor must hire an immigration attorney to apply to enter the program, completing Form I-526.
In this step, the interested party must make the investment of 800,000 USD and make the origin of the capital used transparent, for which they must have a legal source and route of funds.
The next (optional) step is, once the first form is approved, to present a second document known as Form I-485 that will allow obtaining an immigration status to reside in the USA while obtaining the Green Card.
Once this period has elapsed, the investor is now in a position to adjust his immigration status from “non-immigrant” to “permanent resident”. Procedure that is recommended to carry out through a lawyer.
The average time to obtain a Green Card is 2 years. Although this period can be reduced if it is a project of national interest or located in a rural area.
