The EB-5 program is becoming an increasingly popular way for real estate developers to raise capital for their projects. But unlike fund administration for traditional real estate funds, administering EB-5 funds presents some unique challenges.
- Investor motivation is different. In most financial investments, the investor’s primary concern is generating yield. In EB-5, investors are certainly interested in the financial investment, but their primary concern is receiving a green card. From a fund administration perspective, this requires specialized capabilities.
- The stakes are high and personal. A significant personal financial investment is made, usually the minimum of $500,000, in addition to legal, accounting, and other expenses. In the event of an adverse immigration decision, the whole family could face deportation.
- Regulations involving the EB-5 immigration process are complex and demanding. The immigration process requires complex filings, including hundreds of pages of documentation, to substantiate the use of the investor’s funds and the corresponding job creation.
- EB-5 fund administration requirements extend beyond the financial. For a successful I-829 petition, it is essential to track the funds flow from initial deposit into the investment where it must be proven to remain at risk. It is equally important to track and allocate the corresponding jobs that have been created by each investment.
NES Financial’s EB-5 Fund Administration Solution is built to help developers efficiently meet investors’ needs while minimizing costs. This solution complements the existing EB-5 Subscription Escrow Solution that many Regional Centers and developers have already put into place. As the industry leader, our team has the experience to deliver a solution that maximizes operating efficiency, saving the developers time and money, while offering the investors confidence from the continuous transparency and accessibility of their investment information.
What is EB-5? Find out more by downloading our EB-5 Solution Kit.
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