Moderated by: KURT REUSS

We discuss the NCE's administration of the loan to the JCE, to help investors recognize what they need to look out for in their offering documents, what difficulties arise in loan supervision and what information should be regularly reported back to the NCE.

Ronald Fieldstone

Ron Fieldstone

Arnstein & Lehr LLP

Rupy Cheema

Rupy Cheema

EB5 Diligence

David Appel

David Appel

Marcum Accountants and Advisors

Robert Cornish

Robert Cornish

Phillips Lytle LLP

Kurt Reuss

Kurt Reuss

EB5 Deals



When administering a loan to the developer (JCE) here are the four areas the NCE manager should consider

  1. Loan underwriting (Risk mitigation)
  2. Loan administration 
  3. Loan supervision
  4. Reporting to limited partners (Investors) by NCE

From the outset its important that the NCE put in place an agreement with the JCE that mitigates risk and protects EB-5 investors. The manager of the NCE should be independent, knowledgable and experienced with the industry being invested in. 

The NCE should retain a loan administrator to oversee the release of funds from escrow in order to provide an audit trail of each investor's funds, provide up-to-date loan balances, accrued interest and investor account balances. 

Most times a loan supervisor (sometimes the manager) should monitor construction progress against fund disbursements, perform regular site visits, oversee budgets and project status. 

Finally the NCE manager should report to the investors (limited partners) through audited financials, interim financials, regular construction and operations updates, tax reporting and of course, job creation status updates.