To deter the use of illegally acquired funds to obtain U.S. immigrant status, the EB-5 regulations require the investor to submit documentation clearly showing that the capital invested in the enterprise derives from a lawful source. The invested capital must be the personal funds of the investor, as opposed to funds belonging to a third person or a business entity owned by the investor.
An investor may have acquired his or her investment capital in any lawful manner. The funds may have been acquired as personal income in the form of wages, distributed profits or earnings from a business or other investment, proceeds received for the sale of a valuable asset owned by the investor, a loan secured by personal assets owned by the investor, or a gift or inheritance. The funds may not be derived, however, from a loan secured by the assets of the qualifying U.S. enterprise. In the case of funds received as a gift or loan from a third party, documentation must be submitted to prove the lawful manner in which the benefactor or lender acquired the funds.