In the current trend of rising prices, the U.S. Citizenship and Immigration Services (USCIS) is increasingly strict in reviewing the sources of investment funds for EB-5 investment immigration applicants. Once prices rise, the explanation of the source of funds will also become more challenging. Therefore, applicants must prepare in advance for the issue of the source of funds for investment immigration. So, first, you need to know what legal sources of funds are included?
1. Company Profit Distribution
With the development of private enterprises, private business owners obtain their share of profits through company earnings, which is the most common legal source of funds for investment immigration to the United States. It is important to note that if a company is profitable but does not distribute dividends, the private business owner cannot use that money for investment immigration.
For example, Mr. Zhang owns a relatively large and well-functioning company. He is the sole shareholder of the company. He never takes a salary but asks the company’s finance department to issue checks or withdraw cash when he wants to spend money. The company is profitable at the end of the year, but he does not transfer the profits to his personal account. In this case, if Mr. Zhang wants to apply for investment immigration, he needs to first withdraw his profits from the company, deposit them into his personal account, and then invest from his personal account into the investment project in the United States. There was a case where investment funds were transferred from the investor's company account to the investment project, and the USCIS rejected the investment immigration application on the grounds that the company and the company owner or shareholder are separate legal entities.
2. Salary Income Including Bonuses
Salary income here, including bonuses, generally refers to high-income earners. Middle-income earners who wish to invest in immigration to the United States need to collect years of pay stubs and expense receipts to prove that they have saved this investment amount through years of frugality. However, if the investment funds were genuinely saved through frugality, it raises the question of whether it is worth using a lifetime of savings to apply for investment immigration, as U.S. investment immigration is a high-risk investment. High-income earners can prove the legal source of investment funds through tax returns. The USCIS generally requires the submission of tax records for the last five years.
3. Gifts
An increasing number of wealthy parents help their children apply for investment immigration through gifts. The investment funds can also come from other relatives and friends. Investment funds obtained through gifts must first have a gift contract signed by the donor, and the donor's financial background materials must also be provided to prove the source of the donor's funds, including the donor's tax returns, salary certificates, etc. The proof process is equivalent to the donor themselves applying for investment immigration. In addition, the donor must provide a written document explaining why they are giving this money to the recipient. Many successful parents currently do not wish to immigrate to the United States, but if they want their children to study or work in the United States or if their children are already studying or working in the United States and wish to obtain permanent residency, gifting investment funds for their children to apply for investment immigration is a feasible option. Moreover, the USCIS approves investment immigration applications regardless of whether the donor has paid gift tax in their home country.
4. Inheritance
Funds obtained through inheritance can be used to apply for investment immigration. However, the investment funds obtained through inheritance also need to prove how the deceased owner acquired this money. Therefore, the investor needs to provide a series of documents, such as a will, death certificate, financial background of the deceased, the relationship between the investor and the deceased, court documents, bank statements, etc.
5. Loans
There are various forms of loans. Currently, the immigration bureau accepts investment immigration applications using mortgages on other properties. For any investment funds obtained through a mortgage, the investor must provide all documents related to the entire mortgage, such as the loan contract, loan repayment guarantees, etc.
6. Stocks
Generally speaking, stock earnings should be relatively easy to document. However, in today's convenient electronic age, if one does not pay attention to collecting these proof documents, written proof can become quite difficult. If the initial investment amount in stocks was substantial, the investor needs to provide documentation proving the legal source of the funds initially invested in the stock market.
7. Investment Income (Including Real Estate Transactions)
Money earned through investments is also an important source of funds for investment immigration. Currently, the most common source is real estate purchased many years ago in mainland China, which has appreciated tenfold or more over the years. In some large and medium-sized cities, selling a property is sufficient for investment immigration. Investors need to provide all documents related to property ownership certificates and transfers.
From both the financial requirement threshold and personal requirement threshold, the price of $500,000 for EB-5 investment immigration remains one of the lowest-cost and highest-value immigration programs among mainstream immigration countries. It has become an urgent consensus among all investors to select high-quality projects and submit applications as early as possible before the price increase or high requirements change on September 30th.