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 loan administrator, 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.
To learn more about best practices for EB-5 loan servicing, register for NES Financial’s upcoming webinar, Preparing for I-829 Success: Best Practices in EB-5 Loan Administration, Friday, October 16th at 11 a.m. PST (2 p.m. EST).
What is EB-5? Find out more by downloading our EB-5 Solution Kit.
Allow us to address your business needs by contacting us, or commenting on the post below. We look forward to hearing from you!