Every investor's financial story is unique, but most Source of Funds reports are built around a few common types of capital. This guide provides checklists for the documentation you will likely need for each of these common sources.
Source 1: Employment Income (Salary & Bonuses)
This is one of the most straightforward sources to document. You need to show a history of earnings and savings over time.
- Tax Returns: At least five years of personal income tax returns.
- Employment Verification: A letter from your current or past employers confirming your position, salary, and dates of employment.
- Pay Statements: A history of pay stubs or salary slips.
- Bank Statements: Corresponding bank statements showing the deposit of your salary over several years.
Source 2: Sale of Real Estate
If your funds come from selling property, you must prove you lawfully owned the property and document the sale itself.
- Proof of Ownership: The original purchase agreement and title deed for the property.
- Proof of Purchase Funds: Evidence showing how you paid for the property when you first bought it.
- Sale Agreement: The final, executed contract for the sale of the property.
- Closing Statement: A document showing the final sale price and distribution of funds.
- Bank Statement: The bank statement showing the deposit of the proceeds from the sale.
Source 3: Gift from a Family Member
Funds gifted by a third party (usually a parent) are a common source. In this case, you must document the source of the *gifter's* funds.
- Gifter's SOF: The person giving the gift must provide their own Source of Funds documentation (e.g., their tax returns, proof of salary, etc.) to prove they lawfully acquired the money they are gifting.
- Deed of Gift: A formal, notarized document stating the amount of the gift, that it is irrevocable, and that there is no expectation of repayment.
- Gifter's Bank Statement: A statement showing the funds leaving the gifter's account.
- Your Bank Statement: A statement showing the funds arriving in your account.
Essentially, when using a gift, you are submitting two Source of Funds reports: one for the gifter and one for yourself.
Source 4: Loan
You can use a loan for your EB-5 investment, but it must be secured by your own personal assets.
- Loan Agreement: The formal, executed loan document from a reputable financial institution.
- Proof of Collateral: Documents proving your ownership of the asset used to secure the loan (e.g., property deeds, brokerage statements).
- Appraisal of Asset: An independent appraisal showing the value of the collateral is sufficient to cover the loan.
- Bank Statements: Evidence of the loan proceeds being deposited into your account.
Source 5: Business Ownership or Sale
If the funds come from profits, dividends, or the sale of a business you own, extensive documentation is required.
- Business Registration Documents: Proof of the company's legal formation and your ownership stake.
- Business Tax Returns: At least five years of corporate tax returns.
- Financial Statements: Audited financial statements (balance sheets, profit & loss statements) for the past five years.
- Dividend/Distribution Records: Board resolutions or other official records showing the distribution of profits to you.
- Sale Agreement: If the business was sold, the final purchase and sale agreement.
