On May 30, 2013, following months of discussions, stakeholder comment, and even federal court litigation, USCIS finally issued its much-anticipated Final EB-5 Adjudications Policy Memorandum. The May 30th Memo sets forth an accepted framework for Regional Centers and Investors alike regarding topics such as amendments, escrow, bridge financing, states’ TEA designations, and material changes to the I-526 business plan at the time of condition removal. Yet, the May 30th Memo was largely silent on perhaps the most central and time consuming issue for most EB-5 investors: guidance on source of funds.
Determining what constitutes an acceptable EB-5 source of funds (and even more so, what documents are needed to carry the day) can be quite challenging for investors and their attorneys. The regulations provide that capital investments acquired “directly or indirectly by unlawful means (such as criminal activities)” are not qualifying. This is expected and painfully obvious. The regulations also provide a brief list of examples of documents which are very generally worded and are so encompassing that most are largely inapplicable unless an investor has a great many sources of capital.
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