How much of an investor’s wealth must be included in source-of-funds documentation?

Any funds that are being invested in the EB-5 project will need to be included in the source-of-funds documentation. This includes the administrative fee for regional center investments. The minimum investment amounts vary depending on the type of EB-5 project that an investor chooses.

Targeted employment areas (TEAs) are regions in need of economic stimulation and job creation—a cornerstone of the EB-5 visa program. The two types of TEAs are rural and high unemployment. Under the EB-5 Reform and Integrity Act of March 2022, United States Citizenship and Immigration Services (USCIS) is the agency that designates TEAs. If an EB-5 regional center or direct investment project is located within a TEA, the minimum investment amount is $800,000. Projects that are not located within a TEA have a minimum investment amount of $1,050,000.

The EB-5 investment program was created with the intent to provide foreign nationals a pathway to U.S. permanent residency for themselves and their immediate family members. In exchange, they invest capital into new commercial enterprises (NCEs). As part of the process, investors must be able to prove that their investment capital was lawfully obtained and that all relevant taxes have been paid. This is done through the source-of-funds documentation that is submitted along with the I-526 petition.

There are many sources of funds for EB-5 investment projects, including the following:

  • Funds obtained through business ownership
  • Donations and inheritance
  • Income from investments
  • Income from employment wages or salary
  • Real estate income

If an investor is unsure if a particular funding source is acceptable for their project, they should speak to an experienced EB-5 attorney for guidance.