For many EB-5 applicants, most delays aren’t investment-related; they happen because key documents are missing or incomplete. Gathering your financial records early can save you months of waiting and stress.
In this article, we’ll detail what you need to know to prove your source of funds, avoid common mistakes, and prevent unnecessary USCIS delays.
Whether you’re just exploring the EB-5 program or putting the final touches on your I-526 petition, this information can help you move forward with confidence.
Overview
The EB-5 visa allows you to apply for permanent U.S. residency by investing $1.05 million or $800,000 in rural or high-unemployment areas (called Targeted Employment Areas or TEAs) in a business endeavor, typically a real estate project.
When your file is ready, your immigration attorney will submit the I-526 petition (or I-526E if investing through a Regional Center). This tells USCIS:
- You’ve made the required investment,
- The project will create at least 10 full-time U.S. jobs, and
- Your funds came from legal, traceable sources.
A key requirement of the program is to prove the lawful source and path of investment funds. Many investors, especially if they have a long, complex, or perhaps what might, to some, seem to be a suspect financial history, find this the hardest part. Verifying the source of investment funds must align with U.S. anti-money laundering laws and requires clear documentation, and inconsistent records often delay adjudication, or worse, result in denial in what is a rigorous undertaking.
The Legal Source of Funds Requirements
USCIS expects you to show clearly and conclusively that your funds were earned or received legally. They typically want to see at least seven years of financial records. Missing or incomplete documentation, such as misplaced bank statements or tax returns, is the #1 reason USCIS issues RFEs, essentially putting your application on hold.
Acceptable documentation includes:
- Business income or salary: Tax returns, pay stubs, employment letters, or audited financials.
- Sale of property: Deeds, purchase and sale agreements, and bank deposit records.
- Gifts or inheritance: Letters explaining, for example, a parent’s financial situation regarding the gift to the applicant child or probate documents supporting the underlying facts of the bequest that resulted in the inheritance.
- Investments: Stock purchase and sale records, brokerage statements, or capital gains reports.
If you’re transferring funds through multiple accounts or across borders, you’ll need to document each step carefully to avoid Requests for Evidence (RFEs) from USCIS. Denial rates for I-526 petitions reached 55% in Q2 2023, largely due to incomplete source-of-funds documentation.1 Issues often arise because of unclear or untraceable funds, inconsistent or suspicious financial records, problems surrounding currency exchange documentation gaps, exchange rate discrepancies, or foreign banking controls limitations.
Since the EB-5 Reform and Integrity Act of 2022, USCIS has heightened scrutiny on fund sources. Places like China, Russia, Venezuela, and Iran often face extra scrutiny, so it’s especially important to be extremely thorough if your funds come from one of those countries.
Note that even the lack of tax compliance in one’s home country or simply complex financial histories offer application challenges. As such, third-party validations, such as certifications from accountants or attorneys, will help to increase credibility. Conversely, USCIS will immediately flag undocumented cash or loans from unknown, unreliable, or untraceable sources, slowing what typically takes 6-18 months if the petition source of funds is reliably authenticated. Naturally, should your stated income be inconsistent with your deposits, or if your bank records don’t align with your tax filings, this will raise USCIS concerns as well.
A Step-by-Step Approach
- Identify the Source: Pinpoint the exact origin of the capital to be invested.
- Gather at least seven years of financial records: Bank statements, tax returns, transaction histories, and other supporting documents like deeds or gift letters.
- Work with EB-5 Professionals: Proving Source of Funds demands rigor, so draw on attorneys and advisors to spot issues before they become real problems.
- Address Red Flags: Don’t wait for USCIS to ask questions—anticipate them.
- Collect Additional Documents: Including your passport, marriage certificate, children’s birth certificates, and, of course, proof of your investment in the project.
To the extent possible, keep digital records, secure applicable third-party verifications, and retain a lawyer early in the process to align with USCIS’s requirements. Investors should stay informed about evolving regulations and ensure project documentation clearly outlines the business nature, financial projections, and job creation plans to avoid delays or rejections which happen all too often.
Staying Ahead of the Process
Start early by gathering documents, making sure they are complete and have been reviewed by professionals. They should be organized chronologically to demonstrate a clear trail of funds. Resist using complex corporate structures unless fully and clearly documented, and work with trusted professionals—immigration attorneys and financial advisors who know the common pitfalls, such as unusual transaction patterns or nontraditional funding sources — before submitting your I-526.
It goes without saying that you should also review the EB-5 project to be funded from the Regional Center or business sponsor, as well as the project’s business plan and underlying agreements, to make sure they meet all program requirements and prevent later-stage denials.
A Few Final Thoughts
The better prepared you are, the smoother your EB-5 process will be. Getting a head start on this rigorous process helps you avoid delays, anticipate or fix problems before they arise, and present a strong, well-documented case to USCIS.
Experienced professional advisors are invaluable in navigating the EB-5 process. They do more than simply review documentation, verify project eligibility, and prepare for potential Requests for Evidence. The right advisory team will streamline the process, reduce errors, and significantly improve your chances of approval.
The earlier you start, the more likely you’ll file a strong I-526 petition without delays. Be sure your Source of Funds narrative tells a clear, well-documented story—so it can serve as the foundation for your path to citizenship.
1 USCIS