Using gifts, loans or inheritance for EB-5

Every EB-5 investor must show that the capital invested, at least $800,000 or $1,050,000 depending on the project (for petitions filed on or after March 15, 2022), was obtained by lawful means. USCIS generally expects documentation of both where the money came from and how it moved to the investment. This is often called "source and path of funds".

When money is gifted, borrowed or inherited, the chain has an extra link. Instead of showing only how the investor earned or accumulated the funds, the petition typically also needs to address the donor's, lender's or estate's side of the transaction. Our source of funds guide covers the overall requirement.

A gift is a transfer of money for which the recipient gives nothing in return. Parents gifting funds to an adult child is a common pattern. USCIS policy treats gifts as a possible lawful source, but the gift itself does not end the inquiry: the donor's own funds generally need to come from a lawful source as well.

Documentation themes for gifts

• A signed gift record, such as a gift deed or gift agreement, identifying the donor, recipient, amount and date, and confirming that it is a gift with no expectation of repayment.
• The donor's lawful source, for example employment income, business income, sale of property or savings, supported by records such as the donor's bank statements, tax returns, salary records, business records or property-sale documents.
• The relationship between donor and recipient, which helps explain why the gift was made.
• The transfer path, showing money moving from the donor's account to the investor's account and onward to the investment, including any currency exchange.
• Compliance with local rules, such as any gift tax or foreign exchange requirements in the donor's country. Ask a qualified tax adviser about tax consequences in both countries.

An investor may borrow money and invest the proceeds, but the structure of the loan matters. Documentation generally includes the loan agreement, details of the lender, the lender's own lawful source where applicable, disbursement records and the transfer trail from the lender to the investment.

Cash loan proceeds vs. a promissory note

USCIS distinguishes between two situations that can sound similar:

Cash received from a third-party loan

The investor borrows money from a bank or other lender and invests the cash. Such loan proceeds are not automatically disqualified merely because the loan is unsecured, although the loan and the lawful source of the funds still need to be documented.

A promissory note offered as the investment

Instead of investing cash, the investor contributes a promise to pay (indebtedness) to the enterprise. This is subject to specific requirements, including that the investor is personally liable and that the debt is secured by qualifying collateral.

In either case, the assets of the new commercial enterprise (NCE) receiving the investment cannot be used to secure the investor's qualifying indebtedness. Which category a particular arrangement falls into, and what follows from that, is a technical question for a qualified U.S. immigration attorney. The USCIS Policy Manual (opens in a new tab) sets out current policy.

Some investors combine sources: for example, part savings, part gift from parents, and part loan secured by property. Each component usually needs its own documentation. A qualified U.S. immigration attorney can advise on how to present a combined source clearly.

Money or property inherited from a relative can also be a lawful source of EB-5 capital. As with gifts, the inquiry generally covers both the investor's entitlement to the inheritance and the path the funds took from the estate to the investment. Depending on the circumstances, relevant records may include:

• Estate documents: the will, probate documents, a succession or inheritance certificate, or estate distribution records, as applicable in the relevant country.
• Entitlement records: the death certificate and documents showing the investor's right to inherit.
• Tax records: any estate or inheritance tax filings or assessments.
• Bank records: statements showing receipt of the inherited funds, any currency conversion and the onward transfer.

If the investor inherits property and later sells it, the trail usually extends further: ownership records for the inherited property, the sale agreement, receipts for the sale proceeds and bank statements linking those proceeds to the transfer for the investment. Documents in languages other than English generally need certified translations.

Whatever the source, some kinds of funds or arrangements may not satisfy the lawful-source requirement:

• Proceeds of criminal activity.
• Money that arrived through undocumented transactions that cannot be credibly explained.
• Arrangements designed to disguise the true source of the money, such as a loan presented as a gift.

1. 01

   Step 1: Map the money

   List every source of the investment and every account the money will pass through, before any transfers are made.

2. 02

   Step 2: Gather records early

   Older records, such as tax returns or property purchase documents, can take time to obtain, and some may need translation.

3. 03

   Step 3: Keep transfers simple

   Fewer, well-documented transfers are generally easier to explain than many small or indirect ones. Avoid informal transfer channels that leave no clear record.

4. 04

   Step 4: Check cross-border rules

   Foreign exchange limits, gift tax rules and reporting obligations in the home country may affect how money can be moved. Seek local professional advice.

5. 05

   Step 5: Have counsel review before you transfer

   An attorney can identify gaps before funds move, when they are much easier to address.

• Read our full source of funds guide, and if your funds come from India, source of funds for Indian investors.
• If you are a student whose parents may fund the investment, see EB-5 for students; for parents, see EB-5 for families.
• Review how the 2027 investment adjustment may affect the amount you need to document.
• To discuss your family's situation with qualified professionals, request a consultation. EB5 Circle does not provide legal or tax advice.