EB-5 Immigrant Investor Program: Navigating the Financial Hurdles for International Students Applying for Investment Immigration
EB-5 Immigrant Investor Program: Navigating the Financial Hurdles for International Students
Literally speaking, investment immigration means obtaining U.S. immigration status through investment. International students studying in the U.S. looking to apply for the EB-5 Immigrant Investor Program need to clear two key hurdles. Today, we’ll discuss the first one: the financial hurdle.
But international students in the U.S. are only supposed to focus on their studies—where can they get so much money to pursue investment immigration?
This, precisely, is the most critical step for international students applying for investment immigration. We call it the “financial hurdle”.
If an international student can clear this hurdle, they will be spared the troubles many of their peers face—such as scrambling for job opportunities and competing for limited visa quotas—in their future work and life in the U.S.
Currently, the minimum investment requirement for the EB-5 program is $800,000. For certain targeted employment areas (TEAs), the investment amount is set at $1,050,000.
For many international students, it is unlikely that they can afford this investment sum on their own. Therefore, they need to explore ways to raise the minimum required investment capital.
Based on our firm’s case-handling experience, the funds for international students to pursue EB-5 immigration mostly come from financial support from their parents.
Other relatives or friends with the financial means may also provide funds to help international students with their EB-5 applications.
As long as parents, relatives, or friends are willing to gift the required investment amount to the international student, the student will have the financial capacity to apply for investment immigration.
The prerequisite, however, is that these sponsors can provide documentation to prove the lawful source of the gifted funds.
There are various methods to verify the source of investment funds, and the approach adopted depends on the specific circumstances of each case. For those who truly need assistance, please feel free to contact our firm.
Some people ask: Shouldn’t one first find an EB-5 investment project before sorting out the source of funds? After all, where else would the money go?
Not necessarily.
First and foremost, preparing a comprehensive source-of-funds report is a must—it can be used for any EB-5 project you may choose to invest in later.
Good EB-5 investment projects are hard to come by, but sometimes, finding a qualified project is actually easier than compiling and verifying the source of investment funds.
For international students who intend to or may pursue U.S. permanent residency through the EB-5 program, the first priority should be addressing the source-of-funds issue.
Secondly, proving the source of investment funds and actually transferring the funds to a selected EB-5 project are two entirely separate processes.
Even after identifying a preferred EB-5 project, there are numerous procedures to complete before the funds can be transferred.
Under no circumstances should you wire funds directly to an account belonging to the project or an account known to the project operator.
You should also avoid hastily remitting funds from overseas to a U.S. bank account or the international student’s personal U.S. bank account.
Many international students already hold sufficient funds in their U.S. bank accounts to meet the EB-5 investment requirement, but in most cases, these funds cannot be used for EB-5 applications.
Why is that?
Simply because there is no documentation to prove the legal process through which these funds were brought into the U.S. To put it plainly, the funds have an “unverified origin”.
An “unverified origin” does not mean the funds are illicit. It means that the supporting documents tracking how the funds entered the U.S. can no longer be located, making it impossible to demonstrate the source of each sum of money and the legal channels through which it was remitted.
If you have a way to raise the required investment capital, your first step should be to consult an immigration attorney experienced in EB-5 cases to discuss how to properly document and verify the source of the funds.
Only after the source-of-funds matter is fully sorted out should you proceed to consider the fund transfer process.
When selecting an EB-5 project for immigration purposes, the regional center or project operator typically requires two types of payments: the principal investment amount, and additional fees such as project offering fees and immigration application fees.
It is important to emphasize one critical point: the principal investment funds must be wired only to a third-party escrow account independent of the project operator. Moreover, remittance should only take place after confirmation and approval by your immigration attorney.
Therefore, for international students hoping to pursue EB-5 investment immigration, the first thing to assess is whether they can clear this financial hurdle. Clearing it means you are already more than halfway to a successful EB-5 application.
The above overview is prepared byXIE LAW OFFICES,LLC. to provide legal information to the Chinese community. It is primarily for academic discussion purposes and does not constitute legal advice on specific cases. If you already have legal representation, please consult your own attorney, who is familiar with the details of your case. Clients of Xie & Associates Law Firm, as well as readers who have not yet retained legal counsel, may contact Attorney Xie for specific legal questions. If you wish to reprint this document, please do so in full without any deletions, and clearly indicate the source.
Free Consultation Email: attorney@xielaw.com
Phone: (678) 380-0698
Website:
www.xielaw.com
WeChat ID: xielaw88
WeChat Official Account: U.S. Immigration Insights (xielaw8888)
Address: 1770 Indian Trail Lilburn Road, Suite 450, Norcross (Atlanta), Georgia 30093
1770 Indian Trail Lilburn Rd, Suite 450, Norcross, GA 30093 USA
(678) 380-0698 