This week NES Financial was a proud sponsor of the IIUSA reception at the AILA conference in Las Vegas. As a sponsor of the IIUSA reception, our goal is to promote the sustaining of the endangered EB-5 Regional Center Program. Exactly 566 days from the date of this event, the Program is due to “sunset” absent legislative action from Congress. All of our combined efforts to offer job creating investment opportunities to EB-5 investors and economic development to local communities are on the line.
It is NESF’s belief that the EB-5 program provides an excellent opportunity to create US jobs while helping foreign nationals become lawful permanent residents of the United States. As the leading EB-5 Escrow Administration provider, we are working hard to make sure the investors’ funds are secure throughout the I-526 application process. We are excited to be on the IIUSA Best Practice Committee because of our commitment to the security of investors funds. As part of this Committee, we want to ensure that there is infrastructure in place until either the temporary visa is issued, or until the funds are returned to the investor. This will solidify the reputation of the industry and promote the continuance of the EB-5 Regional Center Program. A set of best practices will provide a common framework for the Regional Centers ensuring that the proper level of transparency, security and compliance is adhered to. Some of these best practices include:
- Funds are held with an Independent Institutional Escrow Agent. Utilizing an experienced EB-5 Escrow Agent ensures that the interests of the investors are separated from those of the Regional Center. Not only is it important to have an Independent Escrow Agent, it is important that the agent works with an EB-5 Escrow Administrator who understands the EB-5 process and can efficiently manage the needs of the Escrow Agent, the investors and the Regional Centers.
- Transparency of the EB-5 process and Timing. The Regional Center should provide its investors with an understanding of what to expect throughout the I-526 application process. A clear understanding of when and how the investment funds will be utilized is paramount.
- Structural safeguards for investors. Funds are best held in an escrow account until the corresponding I-526 application is fully processed. If full funding of the project triggers a release of funds from escrow, liquidity should be ensured for any I-526 application that is later rejected.
- Funds need to be held in highly secure and segregated accounts. All funds should be held in escrow by the trust department of a leading bank in an account providing the maximum FDIC insurance coverage available. Accounts for each EB-5 project should also be segregated from those of other Regional Centers and other projects.
- Real-Time visibility of funds. The Regional Center should provide 24/7, secure, password-protected access to account information including copies of all relevant documentation as well as account balances and funds movement.
The EB-5 program has many advantages for all stakeholders. By partnering with NESF, the leader in EB-5 Escrow Administration, Regional Centers are able to deliver secure and transparent handling of investor funds for a worry-free I-526 application process.
As the nation’s leading provider of financial administration and EB-5 solutions for Regional Centers, Fortune 500 companies, financial institutions, and law firms, NESF combines state-of-the-art technology and the highest level of expertise in the industry to deliver flexible and scalable solutions that safely process more than 70 billion dollars annually.