What is the importance of a source of funds report for EB-5 investors?

A clear source of funds report is crucial for a successful I-526 petition. It requires advance preparation and legal advice, as many EB-5 investors are surprised by the amount of time and documentation needed before filing.

How should EB-5 investors plan for their sources of funds?

Investors should identify which funds are readily available and easiest to document. This includes coordinating with third parties for additional documentation, especially if using gifts, which require proof of the donor's source of funds.

What types of sources should EB-5 investors choose?

Investors should select sources with a simple history. Even seemingly straightforward transactions, like selling an investment property, require detailed documentation of the sale, mortgage repayment, and original down payment sources.

What should investors remember about document translations?

All documents submitted in a source of funds report must be translated for USCIS. Working with an experienced EB-5 attorney or accounting firm is essential to identify necessary documents and schedule translations.

Why is it important to start preparing the source of funds report early?

EB-5 investors should start preparing their source of funds report as early as possible, as it requires identifying sources, gathering documents, translating them, and writing the report. An inadequate report is a common reason for I-526 petition denials.

How can investors get help with their source of funds report?

Behring can assist investors in identifying the best sources of funds and provide a reference list of necessary documents. They can also refer investors to experienced immigration lawyers familiar with various sources of funds.

5 Things EB-5 Investors Can Do Preparing for Their Source of Funds Report

A clear source of funds report is one of the most important components of a successful I-526 petition. Naturally you know where your money is, but it is easy to overlook the need for advance preparation and legal advice. And many EB-5 investors are surprised by the amount of time and documentation required before filing the I-526 petition.

Here are some tips for EB-5 investors on how to prepare for the I-526 source of funds report:

1.Plan Ahead for Which EB-5 Sources You Would Like to Use

Identify which funds you have available now or can be made available simply and quickly with the least complication. Pick sources that are the easiest to document to their source of origination. You may need to coordinate with third parties for additional documentation. For example, if you are using a gift, you will not only need documents reflecting the gift transfer, but also documents that identify donor’s source of funds.

2. Pick Sources with a Simple History

You may have recently sold an investment property and assume you have a simple case. But USCIS has become increasingly strict in the detail of documentation even for such a simple transaction.

Not only do you need to document the sale of the property and and repayment of any mortgage loan used to purchase the property, but in most cases, you also need to document the original funds used for the down payment.

This can quickly become complicated if the down payment was made several years ago or came from a variety of places, such as sale of stocks, savings from salary over several years, or a gift from your parents.

In each case, the investor needs to document the full history of source and path of funds, including funds received from third parties. If you are unable to obtain all the necessary documents, you would risk an RFE or denial from USCIS. Otherwise, you would need to identify a simpler option.

3. Don’t Forget About Translations

In general, anything you are submitting in a source of funds report needs to be translated for USCIS. You should work with an experienced EB-5 attorney or accounting firm to plan exactly which items you will need to include in the report. Once identified, then you will need to schedule time for proper translation of any non-English documents. This can be quite extensive. For example, if one of your sources derives from cash distributions over 5 years, you may need to translate 5 years of bank statements, transfer receipts, etc. to show the full source and path of funds.

4. Start NOW, Don’t Underestimate the Time it Takes

To begin the EB-5 investment process, you need to:

Identify the sources of funds to be used
identify which documents are needed for those sources
Translate the documents if necessary
Clearly write the report

EB-5 Investors should know that to get an EB-5 visa, the source of funds report needs to be substantial, backed by clear evidence and organized efficiently so USCIS can offer a swift approval. An inadequate EB-5 source of funds report is the most common reason that EB-5 investors’ I-526 petitions are denied. Source of funds reports take time, so remember to plan ahead.

5. Ask for Help

Behring can help you identify the best sources of your funds and provide a reference list of the types of documents you should assemble for your immigration lawyer. We can also refer you to top immigration lawyers with deep EB-5 experience and who are familiar with all kinds of sources of funds from all over the world.

A free consultation call will save you months of time.

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