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Navigating EB-5 Investment Amounts: Your Path to U.S. Residency
EB5 SOURCE OF FUNDS EXPLAINED
The EB-5 Investment visa was established in 1992 by the US Congress to attract foreigners to invest in the US Economy and create jobs for Americans. The EB5 Visa program was recently revamped to bring in more investor protection measures and provide additional benefits to investors with the passage of the new EB5 Reforms and Integrity Act of 2022. The program requires an investment of $800,000 in a targeted employment area (TEA) and $1,050,000 or more in a non-targeted employment area. The investment in the project must also create a minimum of ten full-time jobs for the U.S. population.
One of the most critical factors determining the success of the EB5 application is the documentation of the Source of Funds. Source of Funds simply means showing how you have accumulated the required funds for EB5 investment amount. You also have to provide documentary evidence in support of your Source of Funds. You can either have a single Source of Funds or multiple source of funds. For example, if all your money for an EB5 investment visa comes from selling property, you must provide documentary evidence. However, depending upon the circumstances, you may also have to go back and show how you acquired the funds to purchase the property.
Similarly, you can have multiple source of funds. For example, you can have a salary income of $200,000 parked in a bank account, $400,000 from the sale of shares or mutual funds acquired from the salary income past savings and another $200,000 as gifts from family members. In this case, you’ll have to trace all the sources of funds and provide documentary evidence.
PATH OF FUNDS
Another important term associated with the Source of Funds is the Path of Funds. This means you must show how the money has moved to reach you for making the EB5 investment amount and, after that, its ultimate investment in a qualifying EB5 project. To ensure that your EB5 investment visa application is approved, you must convince the US immigration officer that your Source of funds is not only legitimate but also traceable.
Hence, making your Source of Funds documentation as accurate as possible and providing all the supporting documentary evidence is essential. The documents must also be prepared, organized, and presented to make it easy for the US immigration officer to understand and approve your case.
Understanding the EB-5 Investment Visa
Discover the intricacies of the EB-5 Investment Visa with Paresh Karia, CEO of Acquest Advisors, your guide to navigating the financial and documentary requirements of one of the most sought-after paths to U.S. residency.
The EB-5 Investment Amount: A Key to Your American Dream
The EB-5 program mandates a substantial investment into a U.S. business venture, which not only aids in securing your green card but also stimulates the American economy through job creation and capital investment.
Setting the Investment Benchmark
The EB-5 program mandates a substantial investment into a U.S. business venture, which not only aids in securing your green card but also stimulates the American economy through job creation and capital investment.
Source of Funds: Critical Documentation for EB-5 Approval
Demonstrating the lawful accumulation of your investment capital is paramount. Whether your funds stem from property sales, savings, earnings, or gifts, each financial source must be meticulously documented and traceable.
Path of Funds: Ensuring a Smooth Financial Journey
Illustrating the movement of your investment capital from its origin to the EB-5 project is vital. This process includes detailing each transaction, showcasing the legal and transparent flow of funds.
Why Accurate Source of Funds Documentation Matters
- Ensures compliance with U.S. immigration regulations, verifying the legality and legitimacy of your investment.
- Facilitates the EB-5 application process, offering clarity and confidence to both the investor and immigration authorities.
Following are some of the most common source of funds that are accepted for EB5 investment amount by USCIS and the supporting documents required
- Employment income: One of the most common Source of funds in EB5 application is earnings from your employment. You may need to give your tax returns for multiple years to show your total income, including that from Employment. Further, you must show your pay stubs or salary slips, an appointment letter/employment contract or a letter mentioning your job duties and salary.
- Sale of Property:Another important and most common Source of Funds in EB5 application is sales proceeds from selling a property. You must have the sale agreement and the purchase agreement for the same. You will need to provide a bank statement which shows the money coming from the buyer’s account to the seller’s account. You may also be asked to provide documents to show how you acquired money to buy the property in the first place. One should be prepared to give a detailed statement if they cannot provide a bank statement or proof of how they acquired the funds for purchasing the property.
- Gift: Another important source of funds can be gifts from family and relatives. A family member or relative can gift the investor money in order to invest in an EB5 visa. You will need to present the gift deed signed by both parties as a supporting document. You may be asked to present the documentary evidence as to how the family member has earned the money in order to give it to the investor.
- Stock options / Mutual funds: One can also raise funds by liquidating their stock holdings. This is also one of the most common Source of funds. The supporting documents required are Contract Notes for the Purchase and Sale of securities, Demat/Securities account, Bank statements and Investor account paperwork.
The Role of Professional Guidance in EB-5 Investment:
Navigating the EB-5 investment amount and source of funds documentation requires expert knowledge and strategic planning. Acquest Advisors, with its comprehensive understanding of the EB-5 landscape, ensures that your financial narrative is robust, compliant, and geared towards success.
HOW WE CAN HELP WITH SoF
As you can see, The Source of Funds exercise is critical and involves much study and planning. It is finalised by the EB5 Attorney, usually with the support and guidance of a professional accountant or a financial consultant.
Since much of the documentation work will relate to the investors finances in India, you need a good Accountant in India who is not only proficient in the Indian Accounting and Taxation System but also has a good understanding of what the US attorney and the Immigration office will look while disposing your case.
Further, remitting funds from India for the purpose of EB5 investment amount is another tricky issue. The RBI has imposed a limit on the amount of funds one can remit abroad each year. There are also Tax Collected at Source and disclosure requirements under Indian laws that have to be complied with.
Embarking on Your EB-5 Journey:
Investing in the EB-5 visa program is more than a financial commitment; it’s an investment in your future and the prosperity of your family in the United States. With the right preparation, documentation, and guidance, your path to U.S. residency is clear and attainable.
To learn more about the EB-5 investment amount, source of funds requirements, and to start your journey to U.S. residency, click here to schedule a consultation with our EB-5 experts at Acquest Advisors.
Invest with Confidence, Live the American Dream:
The EB-5 investment visa is a gateway to new opportunities in the United States, offering a secure and prosperous future. With Acquest Advisors, step confidently into your journey, backed by expert advice and a thorough understanding of the EB-5 investment process.
ABOUT ACQUEST ADVISORS
Acquest Advisors is an immigration advisory firm specialising in Business Immigration and Residency/Citizenship by Investment programs offered by Governments of American & European countries. We provide end-to-end service to our Clients – from planning the source of Funds to selecting the right investment vehicle (Projects /Property /Business), preparation of Business plans, start-up funding, foreign remittance, etc. and handhold them throughout the immigration process. We have an in-house team of experts and a network of professionals (renowned Attorneys, Bankers, Chartered Accountants, Regional Centres, Developers, Fund Managers, Business sellers, etc.) to offer comprehensive immigration solutions.
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