NES Financial - BMG Capital Groupbmgcapitalgroup.com/wordpress_files/pdf/EB5... · Default EB-5...
Transcript of NES Financial - BMG Capital Groupbmgcapitalgroup.com/wordpress_files/pdf/EB5... · Default EB-5...
EB-5 Solution Suite Overview
NES Financial
Confidential
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“If a project lacks certainty and transparency, investors
look somewhere else to place their capital.”
– Congressman Jared Polis on EB-5 project due diligence and reporting
Risk Mitigation Questions – Capital Raise
• What do investors look for in a project and investment partner?
• What makes one project more attractive than another? • Which practices instill the most positive outcome? • How can the capital flow in a timely manner to avoid
liquidity disruption? • What does fiduciary responsibility mean when dealing
with EB-5 investors?
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Risk Mitigation Questions – EB-5 Administration
• What regulatory reporting is required in the multi-year project and cash management?
• How much EB-5 expertise resides in our team? • What systems are in place to manage master and sub-
account reporting? • What is the cost and disruption to modify existing
systems to track EB-5 data and reporting? • How can the team support the full I-829 approval?
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EB-5 Investor Funds Flow
Investor Regional Center New Commercial Enterprise
Job Creating Entity
Operating Account
Construction Draw Account
(Escrow)
Operating Account
Min. Cap Raise or I526 Approvals
Subscription Escrow
Capital Returns Escrow/ (Account)
Funds must be held until all conditions are removed from the Green Card
Developer Refinances or Sells Project The Audit Challenge: 3-4 year journey thru 4 different entities
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Successful I-829 removal of conditions requires
• Evidence that new commercial enterprise was established • Investor made full investment into New Commercial Enterprise • The full investment was sustained at risk • The job creation requirements were met for each investors
Success will require comprehensive tracking of both funds and documents over 3-5 year period
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About NES Financial • Solutions specifically designed for EB-5 and other specialized financial
transactions – Services based solutions are powered NESF developed technology – Delivers increased security, transparency, and compliance to
parties involved in these types of transactions
• Leading provider of EB-5 financial administration solutions – Suite of solutions available for all phases of EB-5 process – Partner with banks to provide complete escrow solutions – Experience with over 250 EB-5 projects, over $10B EB-5 Funds
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NES Financial Suite of EB-5 Solutions • Solutions tailored specifically for EB-5 requirements • Provides higher security, transparency and compliance • Improves document exchange, escrow administration process • Designed for rapid implementation
Confidential
Capital Raise
EB-5 Virtual File Share
Funds Management
Subscription Escrow
Development
Settlement
Immigration Process
EB-5 Immigration Workflow
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Reservation Account NESF Partner Bank
MASTER Acct
Reservation Account
Project 1 Escrow Account
NESF Bank Partner Acct
Investor 1
SubAcct
Investor 2
SubAcct
Investor N
SubAcct
NESF Fund Administration Platform
Investor 3
SubAcct
Investor 4
SubAcct
Project 2 Escrow Account
NESF Bank Partner Acct
Project N Escrow Account
NESF Bank Partner Acct
Escrow Accounts
Project 1 NCE Account
Bank TBD
Project 2 NCE Account
Bank TBD
Project N NCE Account
Bank TBD
NCE Project Accounts Job Creating Projects
Reservation Escrow Account Structure
NES Financial and EB-5 Bank Partners
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Fees Aligned with Project Growth
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Item 1-Time Fees Recurring Escrow $3,500 $2,500 annually for year 2+
Fund Administration $200 / investor setup
$55 / investor / month
Immigration WF 0 $25 / investor / month
Reservation Account $5,500 $2,500 annually for year 2+
NESF & Bank Relationship • Referral & Depository Relationship • NESF Provides:
– Sales & Marketing responsibility – Escrow Administration Services – Daily Client Services interaction – Proven Escrow Agreements – Leading edge sub-accounting technology – Complete Workflow Immigration cycle
• Bank Provides:
– Deposit Functions – Acts as Escrow Agent *
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All structures are not equal
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Finding the Right Balance is Critical
Escrow structure impacts marketability
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EB-5 Currency Exchange
Default EB-5 Funds Flow"
EB-5 Investor"
Local Currency" Local Retail Bank FX Desk"
$550,000 USD" Subscription Escrow Account"
FX Conversion Fee ~ $15,000"
NES Financial EB-5 Funds Flow"
EB-5 Investor"
Local Currency" NESF Partner FX Desk"
$550,000 USD" Subscription Escrow Account"
FX Conversion Fee ~ $5,000"
FX Conversion Fee Savings!$10,000!
• Extends NESF Investor Audit Trail forward in funding process"• Provide Currency Exchange services at wholesale pricing"• Currency Exchange performed at a global bank trading desk"• Standardizes capital flows into project subscription structure"
NES Financial Value Proposition
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EB-5 Fund Administration requires specialized expertise
• Investor motivation is different • Investor stakes are high and personal • Regulations are unique and evolving • Tracking requirements extend beyond the financial
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NES Financial
• Complete solution specifically built for EB-5 life cycle
• Save hours per month with Master and sub-account reporting
• Platform combines financial tracking, workflow & document storage • Strong audit trail & summary reports meet USCIS requirements • Permission based web access for all stakeholders
• Scalable, cost effective and rapid time to market
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Screen Samples
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EB-5 Immigration Workflow Dashboard
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EB-5 Immigration Workflow for RC’s • Proactively manage investor immigration process from
start to finish • Maintain accurate records for I-924A filing to keep in
compliance • Capabilities include:
– Full tracking of immigration status through the EB-5 process – Dashboards and alerts ensure all deadlines are met and nothing is
overlooked – Centralized location for storing and viewing documents – Compliments NES Financial Fund Administration to provide
complete EB-5 solution
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NESF Sub-Accounting: Overall project view
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Subscription escrow detail
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