One of the crucial requirements for EB-5 investment of filing an EB-5 petition for a US Green Card is proper documentation of source and path funds available for the investment. This program requires the applicant to invest US $900,000 or US$1,800,000 in a business or an approved Regional Centre project which should further result in at least 10 job creation. The EB-5 investors must provide proof that the funds they use as investment have lawful sources. This is followed by proof that the funds are of their own.
United States Citizenship and Immigration Services, or USCIS, emphasises that an EB-5 investment by an investor โmust prove by a preponderance of the evidence โ in other words, that it is more likely than not โ that [the EB-5 investor] is fully qualified for the benefit.โ
Required Documents for EB-5 investment
The type of documents required for EB-5 investment depends on the source of your funds. As each investor has different applications, the information needed to be filled in would differ from one investor to another.
The evidence required for EB-5 investment might include, but are not restricted to,
- Bank statements
- Loan documents
- Tax returns
- Employment records
- Property records
- Investment records
- Business accounting records
- Gift records
When is the right time to begin?
As the investor prepares to invest in the EB-5 Regional Center program, they should start thinking about the โlawful sourceโ of their EB-5 investment funds simultaneously. They will be required to produce these documents well in advance of submitting their I-526 application to USCIS.
Depending on the country the investor belongs to, and the age of the records, collecting these records may take time and can also be burdensome. Therefore, it is always good to begin early so that the EB-5 investment application can be filed as soon as possible.
In many cases, the records needed to prove a lawful source of funds may not be available to the investor due to various reasons. For instance, the bank account statements may no longer be archived by the bank. However, even if the direct records no longer exist, does not mean that the investors are completely helpless and cannot participate in EB-5 investment. One way to deal with the situation is to provide an affidavit from the investorโs accountant providing the same information with an appended explanation of why the bank statements no longer exist. Regardless, the more information, affidavits, and documents the investor can provide, the stronger their application will be.
Source of funds
The EB-5 investors can use multiple forms of funds. However, the two most important factors to be considered regarding the funds are
- Legally authorised funds- The funds should be legally permitted to be used by the USCIS.
- Documentation โ As the investor is required to show proper documentation of funds at every step, this task can become cumbersome.
The investor must produce paperwork for each step of the process. For instance, if the funds used by the investor are through a loan, the investor should show paperwork for every single transaction made by them. Many times, especially in case of a gift, the investor might find it difficult to produce the relevant documents. However, in the case of an inherited property, the investor might only need to show the documents of inheritance and a few other relevant documents. Therefore, the amount of paperwork required depends on the type of funds used for investment.
In this case, it is always advisable to take assistance from a certified professional who understands all the requirements of EB-5, along with the Indian taxation system and law.
Acquest Advisors is an Investment Immigration Advisory specialising in Citizenship and Permanent Residency through Investment Immigration programs run by governments esp. America, Canada & Europe.