One of the most important parts of a successful E-2 Visa application is demonstrating a valid source of funds. This requirement exists to ensure that the money you plan to invest in your U.S. business comes from lawful and traceable origins. Simply having sufficient capital is not enough; you must also be able to show how you obtained it and that it is legitimately yours.
What Do We Mean By “Source of Funds”?
For the E-2 Visa, your source of funds refers to where your investment capital originated and how it came into your possession. US immigration authorities require proof that this money was obtained through legal means and documented clearly from its source to its final use in the US enterprise you plan to invest in.
The main goal of this requirement is to prevent money from criminal activity or illicit sources from being invested into the United States. This includes any funds you transfer, plan to invest, or have already committed to your business.
Acceptable Sources
There are a few examples of acceptable sources of funds for an E-2 Visa as long as you can document each step clearly. Common lawful sources include:
Personal Savings and Employment Income
Possibly the most common source, funds you accumulated through your job or business earnings are valid as long as you can show pay records, bank statements, and tax documents.
Sale of Property or Investments
If you sold assets such as real estate, stocks, or a business and used the proceeds for your E-2 investment, you can submit any contracts, sales documents, and proof of transfer.
Gifts or Inheritance
Money you receive as a gift or inheritance can be used, but you must also demonstrate the donor’s source of funds. In practice, this means providing gift affidavits and financial records from the donor to prevent this source from becoming a loophole.
Personal Loans
Loans from banks or other reputable lenders may be allowed if they are secured by your personal assets and not by the assets of the E-2 business itself.
Documentation for Your Source of Funds
Proving your source of funds can be a fairly complicated process and involves gathering a detailed paper trail showing how your money moved from its source into your investment account. Key documents to keep track of include:
- Bank statements showing accumulation and transfers
- Tax returns to validate income or sale proceeds
- Loan agreements and promissory notes
- Gift or inheritance documentation
- Wire transfer receipts and payment records
It’s vital these records are well documented, as immigration officers will expect a clear narrative that aligns with your business plan and shows how your investment funds were earned, saved, or acquired, all through legal means.
The source of funds requirement protects the integrity of the E-2 program and ensures applicants are using lawful capital. Inadequate documentation or unexplained money flows can lead to requests for additional evidence that cause delays, or in the worst case scenario, it can even mean visa denial.
By preparing and organizing all evidence ahead of time, you strengthen your case and reduce the risk of delays or denial. Resendez Immigration Law is here to help you anticipate potential issues and compile a compelling source of funds portfolio.
Contact us online today for your free consultation to see how we can help your E-2 endeavours.