Source of Funds Documentation: Tips for a Successful I-526

Successfully navigating the I-526 petition process hinges significantly on providing robust and clear documentation for the source of funds invested. USCIS scrutinizes these submissions meticulously to ensure the capital used for the EB-5 investment was legally obtained. This article outlines key strategies for preparing impeccable source of funds documentation.

Understanding the USCIS Requirement

USCIS requires petitioners to demonstrate a clear paper trail showing how the invested funds were derived and that they were lawfully obtained prior to being committed to the new commercial enterprise (NCE).

The "Lawful Source" Principle

It is not enough to show where the money is now; you must prove where it came from. Acceptable sources generally fall into categories such as:

• Wages and Salaries
• Business profits or sale proceeds
• Gifts or inheritance
• Loans (must show repayment capacity)
• Investment returns

Step-by-Step Documentation Strategy

A successful submission requires organized documentation reflecting the movement of funds from their origin to the NCE bank account. Follow these critical steps:

1. Tracing the Funds Origin

This is the most crucial step. You must establish the initial source. If the funds originated from the sale of a business, you need:

1. Proof of ownership of the prior business (e.g., incorporation documents).
2. Documents proving the sale (e.g., Purchase and Sale Agreement).
3. Proof of receipt of funds from the sale (e.g., bank statements showing the deposit).

2. Documenting the Fund Path (The Paper Trail)

Every transfer between accounts must be documented. Gaps in the paper trail lead to Requests for Evidence (RFEs).

If funds moved from Account A to Account B, you must provide the bank statement for Account A showing the withdrawal and Account B showing the deposit. Repeat this for every stage.

3. Handling Gifts and Loans

Gifts

If funds were a gift, you must document the donor's source of funds as well. USCIS needs assurance that the gift itself was legally acquired.

Loans

If the investment capital is a loan, the following must be provided:

• A promissory note or loan agreement.
• Evidence that the petitioner has the capacity to repay the loan, or that the lender had the capacity to lend the funds (linking back to the lender's source of funds).

Best Practices for Presentation

Effective presentation minimizes confusion for the reviewing officer. Consider the following tips:

Use a Source of Funds Summary Letter

Draft a detailed cover letter, often prepared by legal counsel, that summarizes the entire path of the funds chronologically. Referencing specific exhibits makes navigation easier. For example:

"The invested $500,000 originated from the sale of XYZ Corp stock (See Exhibit 3.1). The proceeds were deposited into Brokerage Account #123 (See Exhibit 3.2). A transfer of $500,000 occurred on 01/15/2023 from Account #123 to the NCE Custodial Account (See Exhibit 3.3)."

Ensure Conversions Are Clear

If funds were converted from a foreign currency, you must provide documentation showing the exchange rate used and the date of conversion, typically via a reputable financial institution's statement.

Conclusion

The source of funds documentation for the I-526 petition is a marathon of meticulous record-keeping, not a sprint. Proactively gathering complete, sequential, and clearly annotated documentation—showing the lawful origin and the uninterrupted path of every dollar invested—is the single most effective way to avoid delays and secure approval.