Coleen Danaher on Why EB-5 Investors Care About Fund Administration

Concerned about issues like redeployment, loss of capital, or green card denial, investors can opt for EB-5 projects that work with a third-party fund administrator.

Evaluating potential investment projects can be challenging enough on its own, but it’s especially difficult for participants in the EB-5 Immigrant Investor Program. Not only is their capital at stake, but their visa petitions are as well: investing in a project that fails to create the requisite jobs, doesn’t keep proper records, or violates EB-5 rules can result in denial of an investor’s petition.

Because EB-5 investors may be new to America, speak English as a second language, or have little experience investing in these types of projects, the addition of a third party to verify that proper compliance controls are in place can give investors added confidence that their funds are being handled properly. As JTC’s Coleen Danaher explains in an article for Financial Express, this independent oversight can be easy to spot by asking if the project works with a third-party fund administrator.

Titled, EB-5 rule violations can lead to loss of investment and visa denial for foreign nationals, the article discusses what can happen to EB-5 investors when U.S. Citizenship and Immigration Services (USCIS) terminates a Regional Center. To protect against mistakes and malfeasance, the EB-5 Reform and Integrity Act of 2022 (RIA) instituted a requirement for third-party fund administration. Danaher explains that while some projects can obtain a waiver for this requirement, investors may want to seek out projects that work with an experienced third party that offers greater transparency.

Congratulations to Coleen for this article, which will surely be of help to prospective EB-5 investors. And if you’re interested in more information on what to look for in an EB-5 project, read our white paper on investor due diligence and watch the video of our recent webinar on the subject.

Read the full article at Financial Express.