Gifted funds can be used, but the lawful source and path requirement applies to the donor's money as fully as to the investor's own. The record must show how the donor lawfully acquired the funds and how they were transferred, with documents rather than assurances.
The donor becomes part of the file
The practical consequence is that a gift is not a shortcut around documentation; it doubles the tracing work. Before relying on a gift, ask the donor directly whether they are willing and able to produce the records: the sale agreement or other origin document, bank statements covering the relevant period, tax filings where they exist, and identification. Some donors are uncomfortable with that level of disclosure, and it is far better to learn it now than after a commitment. Where records from an earlier decade are unavailable, an adviser can consider what secondary evidence might reasonably substitute, but that conversation should happen before the money moves. A gift instrument should also make clear that the money is a gift, with no expectation of repayment, since a disguised loan raises a different set of questions.
Hypothetical example: Salma, a modular-housing entrepreneur, wants to count relatives who will help at the new company as qualifying hires. Her job table should identify each position, weekly hours, immigration status and relationship to the investor before any total is claimed. The investor, spouse and children do not count toward the ten qualifying full-time jobs, and other workers must independently meet the qualifying-worker rules. The same early review should verify the applicable capital threshold, lawful source and path of funds, and Salma’s role in management or policy formulation. EB-5 residence begins conditionally, with the later I-829 stage testing the required investment and employment evidence.