EB-5 Source of Funds: Preparing documentation and tracing the source of capital
Demonstrating the Source of Funds (SOF) is a critical part of an EB-5 application. Simply having enough money in an account is insufficient without explaining where the money originated, who it belongs to, and how it was transferred to the investment.
Therefore, investors should prepare their source of funds documentation early, while researching projects, rather than waiting until the point of transferring funds to start collecting paperwork.
1. Source of funds and flow of funds must be clearly explained
- Source of funds: how the money was generated or received, such as from salary, business, asset sales, inheritance, gifts, or loans.
- Flow of funds: the steps the money took through bank accounts, currency conversions, and transfers to the investment recipient account.
For example, if the funds came from a real estate sale, the documentation should connect ownership papers, the sales contract, proof of payment from the buyer, and subsequent transactions. A balance confirmation letter is only one document in the file and cannot replace the comprehensive explanation.
2. Define the amount and each source of capital
The standard EB-5 investment amount is currently $1,050,000; the $800,000 level applies to Targeted Employment Areas (TEAs) or qualified infrastructure projects. Not all EB-5 projects qualify for the $800,000 level. You must verify the capital requirement at the time of filing.
Investment capital must be distinguished from project fees, legal fees, government fees, and other costs. When using multiple sources of funds, create a separate list: which source, what amount, date received, and what documentation proves it.
3. Documents should be prepared for each source of funds
The table below is a guide for organizing initial documentation; the lawyer will determine the official list for submission based on each specific case.
| Source of funds | Documents to collect |
|---|---|
| Salary and savings from income | Employment contracts, employment verification, pay stubs, tax records, and bank statements showing income and accumulation. |
| Business and corporate profits | Business registration, proof of ownership, financial statements, tax records, profit distribution resolutions, and evidence of funds transferred to the investor. |
| Sale of real estate or other assets | Ownership papers, documents from the previous purchase or acquisition of the asset, sales contract, payment receipts, and bank statements showing receipt of funds. |
| Gifts or inheritance | Gift or inheritance deed, identification documents, proof of funds receipt, and documentation of the donor's source of funds if necessary. |
| Loans | Loan agreement, lender information, disbursement documents, repayment terms, and collateral documents if applicable. The lawyer needs to review the loan structure and related source of funds. |
| Sale of shares, securities, or investments | Ownership documents, investment history, confirmation of sale, tax records, and bank statements showing receipt of funds. |
4. Create a chronological explanation table
You should create a table for each transaction with columns for: date, amount, currency, sending account, receiving account, purpose, and supporting documentation. Number the documents so the lawyer can review each step.
Particular care should be taken with cash transactions, transactions through relatives, numerous intermediary accounts, or discrepancies between contracts and the actual amount received. If documents are missing, report it early so the lawyer can assess how to supplement; a self-explanation does not automatically replace official documentation.
5. English translations and fund transfers
According to 8 CFR 103.2(b)(3), documents in a foreign language submitted to USCIS must be accompanied by a full English translation, with the translator's certification regarding the completeness, accuracy, and their competence to translate. This regulation does not automatically require all translations to be notarized. Specific requirements for documents should be verified further.
Before transferring funds, consult with your bank, attorney, and relevant experts on how to execute this legally in both the sending country and the US. Save records of transfers, currency exchanges, and confirmation of receipt. Do not use fictitious transactions or recreated documents to "beautify" your file.
6. Prepare your file with a US attorney
Applications through a Regional Center use Form I-526E; standalone investment applications use Form I-526. The form type and evidence requirements must be correctly identified before filing.
KeyApply assists in receiving information, organizing documentation, and coordinating communication. The US immigration attorney is responsible for legal assessments, requesting evidence, and preparing the filing within the agreed scope of services. When scheduling an appointment, you should prepare a summary of your funds and a list of the documents you currently possess.
Related programs and services
- EB-5 Energy – Oil and Gas Investment Project in the US
- EB-5 Immigrant Investor Program – US Residency via Investment
- US Immigration Consultation - Immigration Attorney
View EB-5 investment projects · Overview of EB-5 investment immigration
Call (+1) 647 993 9654 (WhatsApp, Zalo), email info@keyapply.com, or message us via the website KeyApply.com.
Reference guidelines: USCIS – EB-5 Investor Requirements; USCIS – Green Card for Immigrant Investors; 8 CFR 103.2(b)(3) – Document translation.