Recently, a sophomore at University of California Berkeley came in for a consultation and asked if she could invest in EB-5 using funds that her parents had given her.
She had many friends who were graduating as international students but who had been running into many problems finding employment. Some had not been able to find a good position for their Optional Practical Training. Others had found an OPT employer, but the employer was either unwilling or unable to sponsor an H-1 temporary working visa. For those lucky enough to find an employer willing to file for their H-1 visa, they were faced with the H-1B lottery, giving them only about a 35% chance of getting their application considered by USCIS.
When confronted with these difficulties, the EB-5 program began to look more and more attractive to the Berkeley grad. But as a young person, she herself did not posses the funds required for investment. She came to me and asked “Can my investment funds come from my parents?”
My answer to her was absolutely yes. Parents providing investment funds to their children in the form of a gift is a very common arrangement for EB-5. Many parents who have children studying in the United States want to see their children have some assurance of continuing their career here, and EB-5 does exactly that. It broadens the student’s options for employment in the United States and gives the student the power and freedom to pursue their career in the best way possible.
Affidavit of Gift and Source of Funds
The first step will be for the parents to draft and sign what is called an Affidavit of Gift. This is a document attesting that the parent is giving the investment funds as an absolute gift to the their child.
The parents will work closely with their investment immigration attorney to document the source of funds for the investment capital they are giving as a gift to their child. Like all EB-5 investors, the parents must demonstrate to the satisfaction of USCIS that the investment capital is derived from a lawful source. This is a very important step that should not be attempted without the help of a very experienced investment immigration attorney. In addition, the investment immigration attorney will work with the parents to see that the path of the funds is properly documented.
If you want to learn more about making an EB-5 investment, you may be interested in reading The Complete Guide to The EB-5 Green Card. It is available for free as a special offer on this website: just click here. Also feel free to contact us for a free consultation.