How do I know that the regional center is using my money right?

EB-5 investors' funds should be substantially used for jobs' creation and the investors should receive construction report periodically from regional centers. The report should explain how the funds are used. Being a limited partner or LLC member, EB-5 investor can ask NCE for more about the financial details and construction process of the project to monitor the use of the funds. Accountable regional centers should be willing to disclose this information, so investors should ask more and review the partnership agreement and subscription agreement in detail before joining a regional center.

The use of funds is detailed in the Business Plan and the Confidential Private Placement Offering Memorandum for the Project you select. At I-829 stage, the Regional Center will provide you with the evidence of how they used your investment funds for the project.

Definitely, do your due diligence. Ask for their track record with prior immigration approvals. You may want to hire someone to evaluate their finances and the quality of the project leaders.

You should demand as much information from them as possible. More likely than not, your investment’s partnership/operating agreement limits or may even preclude inspection of financial information. You will need to review that language to see if you can live with it. If not, ask the project to be admitted as a “special partner” with the financial inspection access you and your financial professionals require.

There are several ways such as find out who the Fund Admin is; ask for the proof of loan disbursement to the JCE; review annual financials; review flow of funds reports from the Fund Admin; monitor the project progress.