EB-5 Project Size Makes Tracking More Complex

Many issuers starting out in EB-5 believe they can manage EB-5’s unique tracking requirements in-house. However, for most projects, tracking quickly becomes too complex to manage using a spreadsheet.

To comply with I-829 requirements, the flow of each investor’s funds must be tracked from the initial subscription escrow, into the New Commercial Enterprise (NCE), through the loan from the NCE to the Job Creating Enterprise (JCE), as it is deployed by the JCE, and as interest payments are disbursed from the JCE to the NCE, in loan model cases.

The USCIS requires documentation of each investor’s funds to prove that the EB-5 investment was sustained “at-risk” and met job creation requirements in projects claiming indirect job creation.

Indirect job counts are calculated using economic models based on project expenditures, making it essential to track receipts, invoices, and other evidence that the invested money was spent.

In a typical scenario, funds move through three to five banks per investor. Tracking requirements grow more complex and time-consuming as the number of investors involved in an EB-5 project increases.

While spreadsheets may work for projects with very few investors, most issuers find that the process quickly becomes overwhelming.

Increasingly EB-5 issuers are turning to specialized, third-party EB-5 fund administration solutions.

Accounting mistakes or missing documentation can jeopardize immigration outcomes at I-829 filing, with serious impacts on the lives of investors. The use of an independent third-party fund administrator provides an additional level of investor security.

The majority of EB-5 issuers are developers and businesspeople, not immigration lawyers; without a comprehensive compliance platform and the right EB-5 team, it can be difficult to navigate meeting immigration requirements.

To find out how working with a third-party administrator like NES Financial allows issuers to focus on what they do best, contact us today.


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2019-10-07T18:12:36-07:00November 19th, 2015|Categories: Blog, EB-5|Tags: , |