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Regulators and investors alike look for compliance in EB-5

The changes brought on by rapid growth in the EB-5 industry have been a frequent topic of discussion at the NES Financial EB-5 Innovation Summit and other industry events. In the last six years, the number of visas granted through the EB-5 investor program annually have increased 700%. And as EB-5 funding has gained popularity in the mainstream capital raise process, the number of projects seeking foreign investors have increased dramatically as well. Many now estimate that for every one EB-5 program investor, there are ten projects looking for funds. As a result, it’s more important than ever to ensure EB-5 projects appeal to investors’ demands.

The increased exposure of the EB-5 program has drawn the attention of many of the U.S.’ regulatory bodies, including Congress and the SEC, forcing issuers to invest more time and effort into maintaining compliance for their offerings. Additionally, EB-5 offerings must accommodate the regulatory requirements of the countries their investors are emigrating from, adding yet another layer of complexity to the process.

Between legal requirements, both domestic and international, investor diligence, and the reporting and documentation demands of the immigration process itself, it’s easy to become mired in administrative complexities. Not only must funds be accounted for properly, but the Regional Centers or EB-5 project developers must also manage communication with the investors, their agents, and their attorneys, coordinate and file immigration documentation, and manage investor exit strategies, all while simultaneously executing the project itself.

NES Financial’s EB-5 Solutions allow issuers to streamline these reporting and accounting processes to devote their full attention to the capital raise and project development. When good projects fail due to inadequate reporting, no one wins. NES Financial’s Solutions offer issuers the confidence that their reporting needs are being met so that their attention can be focused on ensuring project benchmarks are met.

Further, through our proprietary eSTAC® technology, NES Financial Solutions allow Regional Centers and issuers to offer their investors unmatched degrees of security, transparency, and compliance.  Many investors place high value on the track record of their partners in the EB-5 process; NES Financial has been involved in more than 300 EB-5 projects, and our solutions have helped set standards for best practices across the EB-5 industry.  As a leader in the EB-5 industry, participation in the NES Financial Medallion Award Program offers issuers a valuable marketing advantage.

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What is EB-5? Find out more by downloading our EB-5 Solution Kit.

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