PRXY ADDS FEATURES FOR ACCOUNTABILITY IN EB-5 DEBT AND CAPITAL SPENDING — BY STAFF
which requires a third-party , licensed professional to act as a fund administrator and co-sign transactions between a New Commercial Enterprise ( NCE ) and a Job-Creating Entity ( JCE ) as specified in EB-5 documents while maintaining accurate records . “ The RIA requires that a fund administrator approve transactions in line with the governing documents of the EB-5 project . EB-5 projects come in all shapes and sizes , so we knew early on that we would need to build controlled flexibility into the system to account for these different structures ,” Irish explains .
He adds that EB-5 capital is often used in several ways , including being released to the JCE to pay project costs directly or to repay other financing sources such as senior debt or bridge financing facilities . Early on , PRXY would need to evaluate system architecture to accommodate financing structures , including improved features for rebalancing bridge financing repayments with EB-5 capital . Additionally , the recording of jobs created when part of the bridge financing is spent on job-creating categories while also avoiding information duplicity .
“ As a convenience , the system automatically provides a job creation estimate for each transaction . We recommend that our clients continue to work with their economists as normal . Still , the information and documentation are oriented in such a way on our system to intentionally streamline that process . This feature initially presented some difficulty , particularly when EB-5 is utilized to pay down the bridge financing , as we needed a convention to avoid ‘ double counting ’ from a job creation perspective . We solve this by first recording how the bridge financing facility was utilized from a project expenditure perspective . If EB-5 capital later comes in to pay down that bridge facility . In that case , the platform ensures the correct documentation and recording of that transaction , while rebalancing the bridge ledger but preserving the job creation of
EB-5 feels complex because of the sheer landscape of issues needed from point A to point B . The PRXY platform continues to be a digital roadmap to navigate that course – now that roadmap is even better
the initial bridge spending . If USCIS were to ever inquire about those transactions , a complete audit trail package would always be available ,” Irish says .
As to the software ’ s relationship with U . S . immigration authorities , they are satisfied with the United States Citizenship and Immigration Services ( USCIS ) reception as it requires the fund administrator to be identified on the 956F form for regional centers . This is the first moment where USCIS is informed of the fund administrator in an EB-5 investment . The platform also provides the required fund administration report for the regional center when it files its I-956G form .
Irish also notes that PRXY clients have successfully filed their I-956Fs , and the vast majority have been approved , with those remaining still awaiting processing . He highlights that 956G filing in the 2023 season also resulted in no requests for evidence ( RFE ) from their clients regarding fund administrator reports . Regarding what ’ s next for PRXY , the CEO says they are particularly excited about future features . “ We are pleased to provide a sneak peek of our next product release , which will be rolling out this summer , followed by additionally staggered releases for regional centers and investors .”
One such update will provide enhanced capabilities for PRXY users and greater transparency on the activity at both the fund administration and the project levels . It will also include an expanded library of call-toaction items for each stakeholder , a more robust self-serve feature set , and further advanced reporting capabilities for PRXY NCE users and their regional centers in light of USCIS audit requirements .
“ EB-5 feels complex because of the sheer landscape of issues needed from point A to point B . The PRXY platform continues to be a digital roadmap to navigate that course – now that road map is even better ,” Irish concludes .
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