Can Investors Use Gifted Money for EB-5 Investments? 

Gifted Funds in the EB-5 Program

A key part of any EB-5 petition is proving the lawful source of funds. The United States Citizenship and Immigration Services (USCIS) requires investors to show where the money came from and how it reached the EB-5 project. Many investors consider using gifts from family or friends. This is possible, but there are specific rules to follow.

Are Gifted Funds Allowed?

Yes. USCIS allows the use of gifted funds for EB-5 investments. A parent, relative or other individual can provide the capital as a gift. The important requirement is to prove that the funds gifted were obtained lawfully by the donor or gifter.

Documentation of the Gift

To use gifted funds, the EB-5 petitioner must provide evidence that allows tracing the origin of the money. This includes:

• A gift deed or written instrument that confirms the transfer.
• Bank records from the donor and the applicant showing the transfer of funds.
• Proof of how the donor earned the funds, such as business income, salary, inheritance or the sale of real estate.
• Tax records or financial documents that support the lawful origin of the donor’s funds.

Path of Funds

USCIS also requires the investor to show the movement of funds from the donor and then into the EB-5 investment. The transfer should be presented in a clear, step-by-step way. Keeping the gifted funds in a separate bank account before investment can make this easier to trace.

Timing of Funds

Only funds that are already available and in the possession of the investor can be used to make the investment before or by the time they file the I-526 petition, marking the beginning of their EB-5 application process. USCIS does not accept promises of future gifts or expected income.

Ongoing Scrutiny

Even if and after the I-526 petition is approved, USCIS may ask for more evidence about the source of funds at later stages such as the I-829 petition, the last phase of the EB-5 process. Maintaining clear records from the beginning helps reduce the risk of requests of evidence (RFE) or delays in processing.