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Question:

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What burden of proof do U.S. citizens have when making an EB-5 investment? I have an existing business founded in 2011 with several founders in the company. Now we are thinking about the direct EB-5 financing. I was told that for pooled investment, even if my co-founders and I will not apply for green cards because we are U.S. citizens, we still need to prove our legal source of funds of the investments made by the founders in this company. Is this true? To what extent should we provide the documents? Do we have the same burden of proof as the foreign investor who needs the green card to prove our own source of funds?

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Answers:

January 24, 2014 10:58 Ed Beshara

You will need to retain an experienced EB-5 Law Firm to advise you on the best approvable EB-5 legal and financial infrastructure. If the EB-5 funds will be used in a Bridge Loan setting then the source of the non-EB-5 funds will need to be described. Primarily the foreign national investors are required to prove the lawful source of the personal investment funds.

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March 07, 2014 15:06 Sal Picataggio

While the investor will have to show his or her funds were authentically obtained and transferred, the non-EB-5 sources of funds needs to provide at least some detail on where those funds come from. I do not believe the standard is as high for non-EB-5 sources of funds.

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