Article | Invest In the USA (IIUSA)
EB-5 fund administration: An important service aligning with the Reform and Integrity Act of 2022
March 25, 2024 · Authored by Chris LeBeau
Administered by the United States Citizenship and Immigration Services (USCIS), the EB-5 Immigrant Investor Program gives foreign investors the ability to obtain a U.S. Green Card by investing in job-creating projects. In 2022, the Reform and Integrity Act (RIA) was passed to prevent the misuse of EB-5 funds, which had become more prevalent over the last couple of years due to an absence of oversight.
The RIA requires that EB-5 transactions need to be either audited or controlled by a fund administrator that is independent of the new commercial enterprise, regional center and job-creating entity, and must be a licensed CPA, attorney or broker-dealer.
In this Invest In the USA (IIUSA) article, Baker Tilly Manager Chris LeBeau shares why it is so important to have a capable EB-5 fund administrator as part of your team to ensure EB-5 project success.
Key takeaways
Contact us- The benefits of working with an outsources fund administrator: Outsourcing fund administration provides a scalable solution, which accommodates changes in fund size and complexity, allowing fund managers to focus on core investment activities while leaving administrative tasks to professionals.
- Why utilizing a licensed CPA is vitally important: A licensed, active, CPA (which is now required under the RIA) can provide multiple benefits by acting as an administrator. CPAs are highly trained professionals with a deep understanding of accounting principles, tax laws and financial regulations.
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