The recent SEC enforcement action at Jay Peak has made it clear is regulators, investors, and issuers alike the importance of continuing to monitor EB-5 funds after release from escrow. To address this need, NES Financial has introduced Draw Down Accounts as a new feature of our widely used Intelligent EB-5 Escrow Solutions.
Draw Down Accounts extend oversight of EB-5 capital after release from escrow to increase security for investors without increasing project complexity. Once the escrow release triggers have been met, funds are released into the predesignated Draw Down Account, which is owned by the project entity with read only access for NES Financial. As work on your EB-5 project progresses, NES Financial will review draw requests, verifying the recipients of disbursements are appropriate and the requests come from authorized persons.
When it comes time for I-924A or I-829 filings with USCIS, NES Financial will provide a disbursement confirmation letter detailing disbursement information to meet regulatory requirements. Account statements and reconciliations provide continuous oversight of funds, and our secure, web-based portal provides 24/7 visibility into account information. Funds released to the Draw Down Account can only be disbursed to predesignated accounts for job-creating project expenses or investor refunds.
Unlike in a typical developer operating account, EB-5 funds are not commingled with any other sources of capital or used for non-job creating expenses, reducing investor risk and lending clarity in response to a regulatory audit. Draw Down accounts integrate with the NES Financial Intelligent EB-5 Solution Suites to streamline and add security and transparency to every stage of the EB-5 process.
What is EB-5? Find out more by downloading our EB-5 Administration Solution Sheet.