Third-party loan administration is a best practice in EB-5; in similar investment types, using a third-party administrator for loan servicing is commonplace.
Servicing an EB-5 loan requires issuers to manage:
- Invoicing and collections tracking
- Multiple interest rates and calculations
- Interest payments and distributions
- Draw scheduling
- Statement generation to meet tracking requirements
- Waterfall calculations and reporting
Though some Regional Centers attempt to administer the loan in-house using spreadsheets, they tend to find the process time-consuming, frustrating, and prone to errors.
By working with a third-party EB-5 loan administration, like NES Financial, issuers are able to reduce risk, improve efficiency, and reassure their investors that their funds are properly managed. In fact, in most traditional investment funds, outsourcing loan administration is commonplace.
“Preparing for I-829 Success: Best Practices in EB-5 Loan Administration” was scheduled on October 16 but you can still watch it here by registering today!