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EB-5
Source of Funds / Path of Funds
Best Practices
A defensible source of funds (SOF) and path-of-funds (POF) file is the backbone of a successful EB-5 petition. It answers two questions with contemporaneous evidence: where the capital was lawfully earned and how it moved—step by step—into the new commercial enterprise (NCE). The standards below reflect what consistently withstands agency scrutiny while minimizing RFEs.
1. Lead With A One-Page Timeline—And Mirror It In Your Exhibits
Start with a single-page chronology listing each leg: date, amount, sending/receiving party, account identifiers (masked), and the exhibit citation. Order exhibits to match the timeline. When the narrative and banking trail align, adjudicators spend less time searching—and less time asking follow-ups.
TIP: Label like an auditor: “Ex. B-3 — 2023-05-17 wire ABC Bank acct-1234 → XYZ Brokerage acct-5678, $325,000.”
2. Favor Primary, Contemporaneous Records
USCIS gives the greatest weight to records created in the ordinary course of business:
- Label like an auditor: “Ex. B-3 — 2023-05-17 wire ABC BanFull monthly bank statements (PDF, not screenshots)k acct-1234 → XYZ Brokerage acct-5678, $325,000.”
- Wire/SWIFT confirmations with reference numbers
- Executed contracts/deeds (real estate, loans, share sales)
- Government filings (tax returns, payroll slips, registries)
- Closing statements/valuations tied to the transaction
3. Lawful Sources—What To Show (by category)
Salary / business income
Multi-year tax returns, employer wage statements, or audited financials (for closely held entities), plus payroll and dividend records that match deposits. Include corporate documents to prove ownership.
Real estate sale or equity liquidation
Purchase deed (and funding proof if recent), sale contract, closing statement, buyer payment, and your bank receipt. For equities, include brokerage statements showing holdings, sale orders, settlement, and the deposit.
Gifts
Donor’s SOF to the same standard, a gift deed compliant with local law, proof of taxes (if required), and the banking trail donor → investor → NCE.
Secured loans
Loan agreement, collateral ownership and valuation, lien/pledge registration (where applicable), proof of disbursement to investor, and onward transfer to the NCE.
Inheritance
Will/probate decree/succession certificate and the banking trail from the estate to the investor and on to the NCE.
Business sale (M&A)
Share purchase agreement, escrow/closing statements, pre-sale ownership evidence from the registry, and capital-gains filings or tax clearances.
Crypto / alternative assets (use caution)
Exchange KYC, on-exchange trade history, and fiat off-ramp records that show the wire into your bank.
Equity compensation (RSUs/options)
Grant notices, vesting schedules, broker confirmations of sale, and deposit statements. Employer letters can clarify grant terms.
Source of funds example:
salary savings documented by multi-year tax returns and payroll, plus a home sale supported by a closing statement, buyer wire, and your matching bank receipt—then a clear transfer into the NCE.
4. Path Of Funds: No Gaps, No Commingling
Every transfer must be visible from lawful origin to the NCE (and, where relevant, to the JCE). Avoid unexplained cash deposits, “consolidation” sweeps without statements, and round amounts that don’t reconcile to fees or FX spreads. Maintain a chain-of-custody table listing each leg and the matching exhibit.
5. FX Controls And Cross-Border Specifics
Where foreign-exchange approvals are required, include the approvals or bank remittance forms, FX slips with rate and counterparty, and the corresponding inbound wire proofs. If third-party remitters are lawful and used, document their status and receipts.
6. Taxes Must Match The Narrative
Tax compliance often corroborates lawful origin. Provide returns and payment proofs consistent with the income or gain asserted. For gifts, inheritances, or asset sales, include tax proofs—or a jurisdiction-specific attorney/CPA letter explaining non-taxability. Regularize any gaps before filing and include acknowledgments.
7. Corporate sources: make the company legible
For closely held businesses, provide articles, shareholder registers, resolutions authorizing dividends/loans/redemptions, and audited financials (or CPA-backed management accounts). If intercompany transfers are part of the flow, diagram them and include statements.
8. Gifts or loans from relatives: prove the other side too
A donor’s or lender’s capital must be as clean as the investor’s: show their SOF, the actual disbursement, and—if a loan—registered collateral owned by the investor.
9. Translations, identity consistency, and formalities
Translate every non-English record with certified translator statements. Keep names, IDs, and addresses consistent (plan transliterations early). Notarize/apostille deeds, gift instruments, and similar documents as customary in the jurisdiction.
10. Project Coordination: Align With I-956F
Harmonize your packet with the project file. Confirm I-956F receipt/approval and escrow-release triggers. If an NCE-to-JCE loan is used, add fund-administrator attestations and draw approvals to reinforce the immigration link to job creation.
11. Independent Verifications Add Credibility
Bank letters
confirming account ownership and specific wires
CPA letters
reconciling distributions, retained earnings, or complex sales
Attorney opinions
on inheritance/gift law or FX compliance
Fund-admin confirmations
for disbursement controls
12. RFE-Proof Your File In Advance
Pre-empt common RFEs with full-period statements, reconciled amounts (fees/FX), identified third parties, and backup for cash-intensive histories. Keep an “RFE appendix” (extra statements and clarifications) ready to submit
13. Ethical Lines: Capital Must Be Truly At Risk
No side guarantees of return; no circular flows; no undisclosed sponsor back-funding. Loans must be bona fide, secured by the investor’s assets, and actually disbursed.
14. Sustainment: Keep The Evidence Pipeline Flowing
Maintain monthly/quarterly records after funding—NCE (and, where available, JCE) statements, fund-admin draw approvals, lien waivers, invoices, and updated economist letters. At I-829, you’ll be curating, not reconstructing.
15. Packaging: Make Verification Easy
Use a master index (exhibit numbers, titles, page counts). Bates-stamp pages. Put exhibit titles in headers. Insert short “bridge” memos before complex sections so reviewers orient quickly.
Quick Checklist (Investor)
One-page timeline that mirrors exhibit order
Full monthly statements for each account in the flow
Primary records for lawful origin (tax returns, contracts, payroll, closings)
Gift/loan instruments + donor/lender SOF and bank proofs
FX/remittance approvals and slips (if applicable)
Certified translations; consistent names/IDs; notarizations/apostilles as needed
CPA/bank/legal letters where helpful
I-956F receipt/approval; fund-admin confirmations (if available)
RFE appendix (spare statements, clarifications)
Ongoing archive for I-829 (spend logs, inspections, economist updates)
Proof-of-Funds Questions (and EB-5 context)
What is proof of funds
A short letter or recent statement showing current liquid assets sufficient for a transaction.
How to show proof of funds
Provide a recent bank or brokerage statement or a bank letter on letterhead confirming balances and account ownership.
What is proof of funds in real estate
For offers and closings, sellers typically request a dated bank letter or verifiable statement demonstrating liquid capacity to close.
What is a proof of funds letter
A bank-issued confirmation, on letterhead, stating balances in named accounts as of a specific date.
How to get proof of funds from bank
If not from your bank, a brokerage statement showing available cash or margin capacity can meet many counterparties’ requirements.
How to provide proof of funds
Submit the official bank letter or recent statement (with sensitive digits masked) exactly as the counterparty’s instructions specify.
Where to get proof of funds letter
Your primary bank or brokerage; many provide same-day or next-day letters upon request.
Important: these letters demonstrate present capacity but do not replace the EB-5 evidentiary record tracing the lawful origin and complete movement of capital into the NCE. Keep the source of funds narrative consistent with the banking trail, and ensure your packaging makes each transfer easy to verify. A coherent, gap-free source of funds and POF file reduces RFE risk, accelerates review, and keeps adjudication focused on project fundamentals rather than avoidable documentation gaps.
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