To qualify under the EB-5 program, the Investor will need to show that the funds invested into the new commercial enterprise were derived from a lawful source. These funds may come from a sale of stock provided that the investor is able to demonstrate how he or she obtained the stock. U.S. Citizenship and Immigration Service requires that substantial supporting documents be submitted with the EB-5 application in order to demonstrate that the proceeds from the sale of the stock are the lawful source of the invested capital.
If available, the Investor should include the following documents with the EB-5 application to prove the investment funds were obtained from the sale of stock:
- Capital Source Statement. The Investor should submit a statement stating that the investment funds were derived from the sale of stock and detail how he or she obtained the stock. If the Investor purchased the stock, he or she should detail how the funds used to purchase the stock were obtained.
- Income Tax Returns. The Investor’s past five years of individual tax returns should be submitted with the EB-5 application.
- Bank Statement. The Investor should include his or her bank statement demonstrating the receipt of the proceeds from the sale of the stock.
- Purchase Contract. If the Investor purchased the stock, the Investor should include the written purchase agreement with the EB-5 application.
- Sales Contract. To demonstrate that the investment funds were derived from the sale of stock, the EB-5 application should include the sales contract.
- Share Transfer Agreements. The Investor should include all share transfer agreements, including the initial transfer to the Investor and subsequent transfer to the purchaser of the stock.
- Other Documents. If the Investor initially purchased the stock, other documents specific to the source of the funds used to purchase the stock should be included with the EB-5 application. The documents required will depend on how the Investor obtained the capital used to purchase the property. A list of documents for common sources of funds can be found in other Source of Funds articles found on this website.
