Funds from several sources can be used for an EB-5 investment if the investor can prove that they legally own and legally obtained all the funds. Thus, while investors can use funds from multiple sources, the more sources an EB-5 investment has, the more complex its source-of-funds documentation becomes. Because this is such an important aspect of the I-526 petition, investors must make informed decisions about the funds they use for EB-5 investments.
Each source of capital must be traced from the EB-5 investor back to its origin, and the source-of-funds documentation must demonstrate that all funds were earned and transferred legally. Any gifts must be accompanied by a deed of gift, and any loans must be enforceable and secured by the lawfully obtained personal assets of the investor. Therefore, if, for example, an investor uses funds from savings, loaned funds, and gifted funds for a single EB-5 investment, the investor must submit source-of-funds documentation for each source. This is not only cumbersome but also increases the likelihood of an error or oversight that leads to a request for evidence and delays the I-526 approval process.
A key benefit of working with an EB-5 immigration attorney from the moment the investor decides to pursue an EB-5 visa is that the attorney can advise the investor on the simplest source of funds to use for the EB-5 investment. Additionally, the attorney can help the investor to ensure that the source and path of the EB-5 investment is as easy as possible to illustrate. Typically, I-526 petitions with clear, straightforward supporting documents are adjudicated faster because it is easier for the adjudicator to verify the information presented in the petition pack. While multiple sources of funds may be unavoidable for some investors, working with EB-5 professionals from the outset can significantly simplify the application process.