A documented division does not itself disqualify the source, but the split alone cannot establish lawfulness or the applicant’s entitlement. Trace the underlying business ownership, sale and allocation of proceeds to the amount the applicant actually received.
Document the split, not just the total sale price
Keep the sale and distribution agreements with the records showing how the business interest was lawfully acquired. If a sibling contributed extra money after the sale, identify whether it was a gift, loan or another arrangement instead of treating it as the applicant’s original sale share. A clear allocation helps explain the record but does not resolve an undocumented origin or transfer.
Separate the applicant’s legal entitlement from the family’s total sale proceeds. Assemble ownership history, the purchase and sale agreements, closing records, liabilities, the distribution formula, tax records where relevant, and the complete bank path into the investment. EB-5 requires US$1,050,000, or US$800,000 for a targeted employment area—rural or high unemployment—or an infrastructure project, plus ten full-time jobs for qualifying U.S. workers. Each applicant’s capital must be at risk and invested or actively being invested, with lawful source and path. The mistake is dividing the sale price arithmetically while ignoring ownership percentages, deductions, restrictions, or undocumented transfers.
Hypothetical example: Three siblings from LaSalle sell a custom-furniture factory, but one applicant held a smaller voting and economic interest than the others. That applicant should trace the precise distribution actually received and explain any later gift or loan separately. Counsel should then compare the applicant’s qualifying capital with the selected project threshold and job-creation evidence. A large family transaction cannot substitute for the individual investor’s own documented entitlement, qualifying amount, or independent petition.