EB-5 Source of Funds: What South African Investors Need to Prove

What Sources of Funds Are Acceptable?

USCIS accepts investment capital from any lawful source. For South African investors, the most common sources include: salary and business income (documented with SARS tax returns); the sale of property (documented with deed of sale and transfer records); the sale of a business or shares; gifts from family members (with full documentation of the donor's lawful source); loans secured by personal assets; and inheritance proceeds.

The key requirement is that every source must be documented with a complete, unbroken paper trail from the original earning of the funds to the transfer into the EB-5 investment escrow account.

Can I Use Gifted Funds or a Loan?

Yes, as long as the source of the funds is lawful and documented. — Alexander Jovy, Global Immigration Partners PLLC

If using a gift, you must provide: a signed gift letter from the donor; the donor's bank statements and tax returns proving the lawful source of the gifted funds; and documentation of the transfer from donor to investor. If using a loan, it must be secured by your own personal assets (not the EB-5 project itself), and you must provide the loan agreement and documentation of the collateral.

SARB Compliance for South African Investors

South Africans face an additional layer of documentation: compliance with the South African Reserve Bank's exchange control regulations. The $800,000 investment must be transferred using your R10 million annual foreign capital allowance and/or a SARB-approved foreign investment application. Your South African attorney will prepare a SARB application and ensure all funds are transferred through approved channels. Attempting to transfer investment funds without SARB approval is a criminal offence under the Currency and Exchanges Act.

Frequently Asked Questions