EB-5 Gifted Funds and Donor Source of Funds

The gift must be genuine and cannot be used to disguise or circumvent an impermissible source.

A gift can be used as EB-5 capital when it is a genuine transfer and is not structured to disguise an impermissible source or evade the lawful source rules. Post-RIA law expressly addresses gifted capital, so the record should show that the donor intended to make a real gift and that the investor did not provide hidden consideration or undertake a repayment obligation. The relationship between donor and investor, timing, amount, and surrounding financial records should all be consistent with the claimed gift. A transaction labeled a gift but contradicted by side agreements or repayments can create a serious credibility problem.

INA §203(b)(5)(L) requires donor records when invested funds are gifted.

The evidence should be tailored to the donor's actual source, such as salary, business income, property, or investment proceeds.

The donor’s own lawful source is part of the EB-5 evidentiary record. INA section 203(b)(5)(L) requires applicable records concerning a donor whose funds are invested, and the evidence should be tailored to how that donor actually accumulated the money. Salary, business income, property sale proceeds, securities, inheritance, or another source each call for different corroboration. Tax records, bank statements, ownership documents, sale records, and other source-specific evidence should connect the donor to the funds before the transfer. The filing should not begin only with a large donor account balance if the origin of that balance remains unexplained.

A gift agreement, declaration, tax record, family relationship evidence, and banking records can establish the nature of the transaction.

The legal nature of the transfer should be documented as clearly as the source. A signed gift agreement or declaration can identify the donor, recipient, amount, date, relationship, purpose, and the absence of any repayment obligation. Depending on the jurisdiction, gift tax filings, notarial instruments, family relationship records, or other legal documents may also be relevant. The document should match the bank transfers and petition narrative. If the donor sends money directly to the new commercial enterprise, the record should still explain that the payment was a gift to or for the benefit of the investor and should identify the donor as the transferor.

Side agreements, unexplained repayments, or inconsistent financial records can undermine the claimed gift.

A genuine gift should not contain a concealed obligation for the investor to return the money or provide equivalent value to the donor. Repayment after filing, a side loan agreement, or inconsistent accounting can undermine the characterization of the transfer. This does not mean that every later financial interaction between family members invalidates a gift, but the record should clearly separate unrelated transactions from the gifted capital. If the donor and investor share accounts or business interests, the filing should explain those relationships so USCIS can distinguish a true gift from a loan, reimbursement, or circular transfer designed to create the appearance of qualifying funds.

Bank statements should establish the donor's possession of the funds, transfer to the investor or NCE, and subsequent EB-5 investment.

The path of gifted funds should be traced from the donor’s lawful source through the gift and into the EB-5 investment. Bank statements should show the donor holding or receiving the relevant funds, the transfer to the investor or directly to the new commercial enterprise, and any later currency exchange or intermediary movement. When money passes through several accounts, the filing should reconcile dates and amounts and explain fees or exchange differences. If a third party remits funds on the donor’s or investor’s behalf, that transfer should be identified and documented under the current source and path requirements rather than treated as an unrelated step.

• Gift agreement
• Donor identification
• Relationship evidence
• Donor tax returns
• Donor bank statements
• Donor source records
• Investor bank statements
• Transfer confirmations

A strong gifted-funds package usually includes donor identification, relationship evidence, a gift declaration or agreement, the donor’s source records, applicable donor tax returns, donor bank statements, investor bank statements, and transfer confirmations. Additional records depend on the source, such as employment documents, business records, property sale documents, securities statements, or inheritance evidence. Currency exchange or third-party transfer records should be added when relevant. A concise transaction schedule can tie the source, gift, conversion, and final investment together. The objective is to prove both that the donor lawfully owned the money and that the investor lawfully received and invested it.