By Joey Barnett
In the post-RIA environment, “show me the money” has become more than a catchphrase; it’s the play USCIS keeps calling. USCIS’s regional center audits and Form I-829 adjudications all underscore one theme: regional centers must be able to prove with documentary evidence where the money is, where it’s going, and what it’s doing.
Below are best practices to help EB-5 regional centers meet that standard with confidence, with silly football references for shits and giggles.
1. Control the Ball: Tie Every Dollar to the Record
Regional centers should maintain clear, traceable accounting showing each investor’s capital contribution after receipt from escrow through deployment and use of the JCE. Gaps between the investor’s source of funds and the NCE’s/JCE’s bank statements remain a commonly picked on issue. Using spreadsheets and fund flow charts with consistent identifiers is recommended.
2. Run the Clock Smartly – Update the Story Throughout the Year
Think of the I-956G as an annual narrative of compliance. Regional centers should gather transactional data and job creation documentation throughout the year rather than trying to recreate the record each autumn. Maintain contemporaneous records of capital transfers, expenditures, and job creation calculations.
3. Huddle Early and Often with NCEs and JCEs
Regional centers should not wait until year-end to verify information and EB-5 compliance. Quarterly check-ins with each NCE or JCE can identify potential problems – such as early repayments, commingled funds, or untracked expenditures – before they become regulatory findings.
4. Protect the “At Risk” Position
With loan repayments, redeployment, and project exits occurring for long-standing deals, regional centers should proactively document that each investor’s funds remain “at risk” until the applicable sustainment period ends. Include reinvestment agreements, bank statements, and loan amendments as part of the annual file.
5. Build a Culture that Plays to Win the Game
In today’s enforcement climate, transparency builds credibility. Providing clear, well-organized documentation signals a culture of compliance and reduces the risk of deeper investigations or delayed adjudications.
To help get your Regional Center across the goal line this fiscal year 2025, please contact jbarnett@wolfsdorf.com for assistance on the Form I-956G, Regional Center Annual Statement
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