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How to use the Drawdown & Spending Tab

The Drawdowns & Spending Tab is your hub for initiating an EB-5 drawdown or documenting project spending. Your submissions to this page will help you move funds, or serve as a record of all uses of funds. In both cases, this data is the basis of your PRXY Dashboard and Report.

Tip 💡Your Dashboard and Report will be incomplete until you add spending to this tab. Take a look at Best Practices for Project Spending Documentation for an overview of the proof needed to streamline your submissions. 

What is an EB-5 Drawdown  

An EB-5 Drawdown is the process to move money from your NCE EB-5 Account to your JCE Operating Account. USCIS likes to clearly see how much of your EB-5 funding you will use (sources) and for what purpose (expenditures) and this process mimics those requirements. 

A drawdown will quickly and easily move through the PRXY System if:

  • You have an upcoming or due payment. This is critical! 
  • You have a clear invoice or other payment notice -- see Best Practices for Project Spending Documentation for guidance
  • The payment is for a qualifying project expenditure 
  • Funds are already in your NCE EB-5 Account

Keep in mind — if the project developer is requesting EB5 funds as a reimbursement for prior  expenditures and does not have a due or upcoming invoice etc. this would be a Bridge Financing Repayment. It must be 1) outlined in your project documents and 2) first submitted as Project Spending to record that bridge financing took place and should be re-payed.

Please reach to support@prxyco.com if you'd like discuss whether Bridge Financing Repayment is permissible in your project. 

Important: if you use escrow, you must first move funds out of escrow to your NCE EB-5 account. This must be done before submitting a drawdown request and requires sending a written direction/disbursement request with PRXY’s signature. See an overview of this process in Breaking Escrow in advance of an EB-5 Draw.

How to submit an EB-5 Drawdown to PRXY 

Use the Drawdowns & Spending Tab to submit a drawdown once funds are in your NCE EB-5 Account.

Step 1: Choose the NCE EB-5 Account associated with the Drawdown Request. 

Step 2: Choose the JCE/Operating account you wish to drawdown to.

Step 3: Input the exact dollar amounts that you plan to transfer in the corresponding expenditure category.   

Step 4: Upload all appropriate documentation. See documentation best practices here: Best Practices for general project and EB-5 spending documentation. 

Once you have submitted the draw request, that status will update to In Review and PRXY will be notified. If all criteria have been met for a successful submission, PRXY will review and approve as quickly as same-day. If something is incomplete, we will reach out to you with a request for more informationPlease avoid submitting urgent requests at the end of the day, before a weekend, or before/on a holiday as this could delay the process. 

Tip 💡Avoid submitting urgent requests at the end of the day, before a weekend, or before/on a holiday as this could delay the process. 

What is a Project Spending Report 

A Project Spending Report is an overview of previous spending for the purposes of documenting the progress of the project. Reporting project spending is essential to using the PRXY Portal successfully for a few reasons: 

  • It automatically updates the Dashboard to provide investors, agents, and your regional center with a complete overview of the project’s progress. 
  • It updates the PRXY Report with this information, essential when, for example,  sending the report to your Regional Center to support your annual I-956G filing. 
  • It preserves a record of your overall spending in the same place as your EB-5 spending in anticipation of I-829 petition filings. 

Best practice is to report project spending as it occurs. In other words, report overtime to make sure your dashboard and report are complete throughout the lifecycle of your project. 

If you are new to PRXY and need to report spending prior to joining, we recommend submitting a master report in a bulk upload. Then, reporting can be done on a regular basis (say, monthly or quarterly).

How to submit a Project Spending Report 

Submitting a Project Spending Report is much like submitting an EB-5 Draw. The difference is that you will not see an option to use EB-5 Funds. 

Once you have submitted a project spending report, the status will update to In Review and PRXY will be notified. We will review, provide feedback and record the spending. 

As your fund administrator, PRXY is charged with ensuring that EB-5 funds are used appropriately. While we may provide feedback on documentation for non-EB5 project spending to support optimal filing, keeping and providing clean records are your responsibility.

Remember, EB5 investors rely on accurate records of all project related expenditures and revenue in order to receive maximum job creation credit. Take a look at Best Practices for Project Spending Documentation  for guidance on what kind of documentation we recommend. 

Keep in mind –If your PPM contemplates Bridge Financing Repayment, you may submit Project Spending Report for Bridge and later use EB-5 funds to repay that bridge. Reach out to your attorney to confirm the ability and criteria to access EB-5 funds for Bridge Financing Repayment.