Answers to Your Most Frequently Asked Questions
What is the RIA and what does it require for fund administration?
The Reform and Integrity Act of 2022 (RIA) updated the EB-5 Immigrant Investor Program. One of its central requirements is that Regional Center-sponsored projects must either engage an independent fund administrator or undergo annual third-party financial audits for each New Commercial Enterprise (NCE).
A fund administrator tracks how investor capital is used, ensures capital flows align with the offering documents, and maintains detailed records. This oversight helps protect investors and reinforces the transparency and integrity of the EB-5 program.
What counts as an independent administrator under the RIA?
The fund administrator must not have any financial interest in the NCE, JCE, or Regional Center. Internal teams or affiliated entities do not qualify. The administrator must be an independent, third-party firm.
Reference: 2022 Consolidated Appropriations Act, Division BB, Title II, Subtitle A
(Tip: Use “Ctrl+F” and search for “Division BB, Title II, Subtitle A” to locate the relevant section.)
When should a fund administrator get involved?
A fund administrator must be engaged before any investor funds are accepted, as the administrator must be identified on the I-956F. Oversight begins as soon as funds are received—whether held in escrow or deposited directly into the NCE—and continues throughout the life of the project.
Can a fund administrator manage escrow release conditions?
Yes. Fund administrators verify that escrow release conditions are satisfied before each disbursement. Ongoing oversight also helps ensure that funds released to the JCE continue to support project milestones and job creation requirements.
What kind of reporting does a fund administrator provide?
Standard reporting typically includes:
- Capital account tracking for each investor
- Detailed ledgers of all funds received and disbursed
- Verification that fund usage aligns with the PPM, business plan, and economic report
- Data to support annual USCIS filings and investor I-829 petitions
- One click reports for annual I-956G filings.
These reports support both day-to-day fund operations and long-term USCIS compliance.
Does fund administration continue after all funds are deployed?
It can. Oversight may continue through the full investment lifecycle, including:
- Monitoring redeployment, if applicable
- Tracking capital return to investors
- Supporting I-829 filings
- Assisting with final investor exits
Does the fund administrator communicate directly with investors?
No. PRXY does not communicate directly with investors. Instead, we provide tools that make investor communications easier for your team, including customizable dashboards that keep sponsors and investors informed without adding administrative burden.
How does the fund administrator assist during a USCIS audit or site visit?
PRXY’s platform provides immediate access to materials commonly requested during audits or site visits, including:
- Transaction histories
- Compliance reports
- Detailed cash-flow audit trails
- One-click project reports