Efa ppt 9-2013

www.edufundamerica.com American Charter Development, LLC

Financing Schools that Inspire Children


SCHOOLS AND EB-5 PERFECT!

Project OverviewChamps at Wellington and the Education Fund of America offer EB-5 investors a unique opportunity to invest in a governmentfunded privately managed public charter school. Public charter schools have proven countless times their ability to create jobsand have demonstrated an ability to return investor funds, typically within three to four years.

Our school developer, American Charter Development, LLC (ACD), will be developing the CHAMPS at Wellington school to open in the fall of 2014. The school will educate 580 students in kindergarten through 5th grade. ACD has already developed 24 charter schools and will construct another 20+ in 2014 school year. All ACD schools have been successful growing student populations and creating many more jobs then were originally planned.

Direct EB-5 Project - Approvals Generally in 4-6 months

EB-5 funds to be repaid when the schoolpurchases their facility - planned for 48 months, or soon after all I-829 approvals.

Charter School – West Palm Beach, Florida

Government Payments State pays tuition

$500,000 Direct EB-5 Investment School in TEA

Quick Return of EB-5 Funds Likely in 42 months

Only 3 EB-5 Investor openings 36 jobs will be created

Source of Investment

Funds Amount Percent

Project Equity 1,552,991$ 25.0%

EB-5 Investor 1,500,000$ 25.0%

Senior Debt 3,052,991$ 50%

Total 6,105,981$ 100%

www.edufundamerica.com














EB-5 Investor 1,500,000$ 25.0%

Senior Debt 3,052,991$ 50%

Total 6,105,981$ 100%















EB-5 Investor 1,500,000$ 25.0%

Senior Debt 3,052,991$ 50%

Total 6,105,981$ 100%















EB-5 Investor 1,500,000$ 25.0%

Senior Debt 3,052,991$ 50%

Total 6,105,981$ 100%















EB-5 Investor 1,500,000$ 25.0%

Senior Debt 3,052,991$ 50%

Total 6,105,981$ 100%















EB-5 Investor 1,500,000$ 25.0%

Senior Debt 3,052,991$ 50%

Total 6,105,981$ 100%



ChampionCCCChChaha

Education Fund of America, LLC provides financing for schools thatInspire Children. The Company is part of a corporate finance businessthat provided over $5 billion (USD) to companies throughout the USA.Because of it’s expertise, the company safeguards it’s 22 years ofsuccessful history by only sponsoring schools for EB-5 investorsthat are Safe, Secure, and Predictable.

CHAMPS at Wellington

This summary overview is quali!ed in its entirety by the Private Placement Memorandum detailing all the terms, conditions and forward looking statements.

The new school will be located in beautiful West Palm Beach, Florida- about 75 miles north of Miami. There are 1.3 million people in PalmBeach County.

The School will be a two story, 33,000 square foot facility located on 5 acres of land. The new school will be built with 30 classrooms, a computer lab, multipurpose space, library, office spaces and a teachers work area.

Investment ConsiderationsThe school will be 100% financed by a bondfund and those funds will be used to purchasethe land and construct the new school facility.The EB-5 investors funds will be used to repaythe bond loan - classified as a bridge loan.

Repaying a bridge loan is an approvedUSCIS activity.

The investor’s $500,000 is planned to be returned when the school finances the purchase of the school - using bond funds.

Bond funds have been used to finance over $5 billion USD of charter schoolsin the USA. Investor funds will not be returned prior to the I-829 adjudication.

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Direct EB-5 USCIS processing time: 4 – 6 months

Regional Center USCIS processing time: 16+ Months USCIS processing I-526 petitions from March 2012 – in Sept. 2013


Risk Mi'ga'on: If school fails to create 10 jobs for an investor. We:

– Do not submit that school project’s I-‐829 – Move investors $500,000 to a new school – Submit a replacement I-‐526 to USCIS – Prove jobs were created by the new school – Repay EB-‐5 investor’s $500,000.

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Why we finance Charter Schools


Public Charter Schools Are:

•  Privately Managed -‐ Public Schools

•  Funded by State Government

•  Benefits to Parents & Children: –  Academic excellence –  Inspiring environment


Public Charter Schools Are:

•  Licensed by the State Government

•  Compete with Public schools for the students

•  Offer Parents and children a CHOICE


Direct Job Creation – Charter Schools

One new job is created for every 14 – 16 students

(on average -‐ depending on the school)


Job Creation & Students

8,300 students enrolled

553 jobs created

School&Name1 Summit Academy

2 American Leadership Academy

3 Lincoln Academy

4 Ronald Reagan Academy

5 Thomas Edison Academy South

6 Mountainland Technology

7 Noah Webster Academy

8 Washington Academy

9 Odyssey Preparatory Academy

10 CS Lewis Academy

11 Dual Immersion Academy

12 Berean Academy

13 Mountainville Academy

14 Legacy Traditional Schools

15 Mosaica Academy

16 Champion Schools

17 Starshine Academy (Temporary Site)

Total Student Enrollment

Enrollment Enrollment&Plan 2012550 1,024

1,200 1,772

550 640

500 677

450 576

300 475

500 550

400 725

600 900

200 430

350 460

500 550

600 680

600 1,100

400 560

400 560

200 254

8,300 11,933

Our School Developer


As of December 2012 11,933 students enrolled

242 more jobs created than were planed

School&Name1 Summit Academy

2 American Leadership Academy

3 Lincoln Academy

4 Ronald Reagan Academy

5 Thomas Edison Academy South

6 Mountainland Technology

7 Noah Webster Academy

8 Washington Academy

9 Odyssey Preparatory Academy

10 CS Lewis Academy

11 Dual Immersion Academy

12 Berean Academy

13 Mountainville Academy

14 Legacy Traditional Schools

15 Mosaica Academy

16 Champion Schools

17 Starshine Academy (Temporary Site)

Total Student Enrollment

Enrollment Enrollment&Plan 2012550 1,024

1,200 1,772

550 640

500 677

450 576

300 475

500 550

400 725

600 900

200 430

350 460

500 550

600 680

600 1,100

400 560

400 560

200 254

8,300 11,933

795 Jobs Created


5/18/13 8:18 AMMichael Van Beek: What Michigan's Charter Schools Can Teach the Country - WSJ.com

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OPINION May 17, 2013, 6:38 p.m. ET

By MICHAEL VAN BEEK

Public charter schools now serve 2.3 million children nationwide and enjoy growing bipartisansupport. But they are still loathed by teachers unions and traditional public-school officials moreinterested in protecting their piece of the school-funding pie than in providing students trappedin failing schools with a chance at a decent education.

Those familiar with the controversy over charters have probably heard of the 2009 study byStanford University's Center for Research on Education Outcomes. The Credo study, routinelycited by groups opposed to school choice, analyzed charter schools in 16 states and found that, onaverage, only 17% were outperforming conventional public schools while 37% were doing worse.

However, Credo noted that the study's results "vary strongly by state and are shown to beinfluenced in significant ways by several characteristics of state charter school policies." Theseinclude laws determining how many charters can operate in a state, who can authorize them, andthe level of autonomy these schools will have from certain state regulations.

Although largely ignored, this finding is especially relevant in light of a more recent Credo studyfocusing solely on the performance of Michigan's charter schools. The findings, released inJanuary, portray Michigan's charter schools as a clear-cut success story and provide lessons forother states.

Credo found that 42% of Michigan's charter schools areoutperforming conventional public schools in math and35% of charters are outperforming in reading. Only 6%of charters are underperforming in math and only 2%in reading. Further, 82% of charters produced growthin average reading test scores and 72% did so in math.

Dow Jones Reprints: This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients orcustomers, use the Order Reprints tool at the bottom of any article or visit www.djreprints.com

What Michigan's Charter Schools Can Teach theCountryThe secrets of reform success include liberal chartering rules and freedom from teacher tenure.

Michigan Study findings:

“After five years the average charter-school student made

cumulative learning gains equivalent to an entire additional

year of schooling."

5/18/13 8:18 AMMichael Van Beek: What Michigan's Charter Schools Can Teach the Country - WSJ.com

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Associated Press

Detroit Midtown Academy teacher RochellDunson works with students in 2008.

Of the 56 outcomes for different subgroups of studentsand schools the study dissected, 52 showed charter-school students outperforming their peers inconventional public schools.

Perhaps the most notable finding was that from 2007-11 the typical Michigan charter-school student madeannual academic gains in both reading and mathequivalent to about two additional months of learning,compared with his or her peers in conventional publicschools. The longer a student stayed in a charter schoolthe greater the annual gains. After five years theaverage charter-school student made cumulative

learning gains equivalent to an entire additional year of schooling.

As Cindy Schumacher, executive director of the Center for Charter Schools at Central MichiganUniversity, told the press after the Credo report was released, the report "shows that the MichiganModel is working, with it leading to significant improvements for children, especially at-riskchildren who are historically underserved."

The results were even more pronounced in Detroit, welcome news in a city where an estimated47% of the adult population is functionally illiterate, according to the Detroit Regional WorkforceFund. The typical Detroit charter-school student made annual gains worth about three additionalmonths of learning in both reading and math compared with their peers in nearby conventionalschools. Of the 100 or so charters in Detroit, 47% did significantly better than conventionalschools in reading and 49% did significantly better in math. Only one charter school in Detroit didworse in reading compared with the city's district-run schools.

The Michigan Education Association, the state's largest teachers union, and other defenders ofthe public-school status quo have tried to play down these results. Some point out that the Credostudy didn't include every charter school. In fact, the study included 86% of all charter-schoolstudents in the state and remains the most comprehensive and rigorous study of Michigan charterschools.

Credo's researchers matched about 85,000 charter-school students to their "virtual twins" in localconventional public schools based on race, gender, socioeconomic status, prior test scores andother factors. Individual learning gains made by each set of students was then measured overtime.

Sadly, the media have largely ignored Credo's findings or grossly distorted them. For example,days after the report was released Huffington Post ran a story calling it a "cautionary tale" andemphasizing that a large portion of charter schools' average reading and math scores were belowthe state average. This comparison turns a blind eye to the well-documented impact poverty hason average standardized test scores. Since Michigan charters—often found in the school districtsstruggling most—enroll a far higher percentage of poor students (70%) than do the state'sconventional schools (43%), the finding biases the results against charters.

Wall Street Journal – May 17, 2013


Charter Schools in the USA

•  5,600 Charter Schools •  Need 4,000 more Charter Schools because… over 1.2

million children on wait lists, Center for Educational Reform, Washington DC.


School En'ty

Licensed by State to operate a charter school

Project Structure

Creates: NEW Limited Partnership – that: 1. Operates School – hires employees

2. Leases a new School Facility

3. Invests EB-5 Funds into: F,F & E, Operations, etc.


New Limited Partnership

48.00% 51.99%

Ownership

School En_ty EB-‐5 Investors Educa_on Fund

51.99% 48.0%


School Financing – Phase I

Senior Bonds 50% Funding

Charter School Development Company

Subordinate Bonds 25% funding

Leases School

Facility

Limited Partnership

Subordinate Bonds 25% -‐ Bridge loan

Direct Investment

Builds School Facility


School Financing – Phase II

Senior Bonds 50% Funding

Charter School Development Company

Subordinate Bonds

25% funding

Leases School

Limited Partnership

EB-‐5 Investors

25%

Pays off bridge loan


EB-‐5 Direct Investment

Limited Partnership

EB5

EB5

EB5

EB5

EB-5 Investors

Funding Direct Investment

Operations

Working Capital

Tenant Improvements

Furniture & Equipment


Repayment Financing

Limited Partnership

Senior Bonds

Subordinate Bonds

School En'ty Municipal Bond

EB-5 Investors

Financing Repayment

EB5

EB5

EB5

EB5

After 39 – 42 months


Over 30 years experience developing commercial proper_es •  Started Charter School business in 2003

•  Developed dozens of VERY successful Charter Schools

•  Utah State Legislature, Chairman -‐ Higher Educa_on

•  Net Worth over 8 figures, Excellent Credit Ra_ng

Mike Morley, Chairman

American Charter Development, LLC

Charter School Developer


Capital Stack – sample school project Tax Free Municipal Bonds – from large Ins_tu_onal Funds


EB-‐5 Funds pay off “bridge loan”

Interest payment savings with EB-‐5 funds, 36 months


New Bond issued in 39 – 42 months pays off previous issued bonds and EB-‐5 investment.

Interest savings to school :


In our example

Interest payment savings during the 30 bond term

Why do schools want to quickly pay off EB-‐5 and bond lenders?

To save money…


1

THE INDUSTRIAL DEVELOPMENT AUTHORITY OF THE COUNTY OF PIMA

$10,975,000 EDUCATION FACILITY REVENUE BONDS

(AMERICAN LEADERSHIP ACADEMY PROJECT) SERIES 2012A

INTRODUCTION

The following is a brief introduction as to certain matters discussed elsewhere in this Official Statement and is qualified in its entirety as to such matters by such discussion and the text of the actual documents described or referenced. Any capitalized term not required to be capitalized is used with the meaning assigned in “EXHIBIT E – SUMMARIES OF FINANCING DOCUMENTS,” or in the Indenture of Trust, to be dated as of January 1, 2012 (the “Indenture”), between The Industrial Development Authority of the County of Pima (the “Issuer”), and U.S. Bank National Association, as trustee (the “Trustee”), the Loan Agreement, to be dated as of January 1, 2012 (the “Loan Agreement”), between the Issuer and American Leadership Academy, Inc. (the “Borrower”), an Arizona non-profit corporation, or other document with respect to which the term is used. Definitions contained in the text hereof are for ease of reference only and are qualified in their entirety by the definitions in “EXHIBIT E – SUMMARIES OF FINANCING DOCUMENTS,” or the documents with respect to which such terms relate. The Exhibits hereto are an integral part of this Official Statement and each potential investor should review the Exhibits in their entirety.

General

This Official Statement, including the cover page, the inside cover, the introductory statement and the Exhibits attached hereto (this “Official Statement”), is furnished in connection with this offering by the Issuer of its Education Facility Revenue Bonds (American Leadership Academy Project), Series 2012A, in the aggregate principal amount of $10,975,000 (the “Series 2012A Bonds). The Series 2012A Bonds were authorized by a resolution adopted by the Board of Directors of the Issuer on September 7, 2010, as amended by an amending resolution adopted by the Board of Directors of the Issuer on February 18, 2011, as further amended by that second amending resolution adopted by the Board of Directors of the Issuer on October 21, 2011, the Constitution and laws of the State of Arizona (the “State”), particularly The Industrial Development Financing Act, comprised of Title 35, Chapter 5 of the Arizona Revised Statutes (the “Act”) and will be issued under the Indenture.

The proceeds of the Series 2012A Bonds will be loaned to the Borrower pursuant to the Loan Agreement. The

Borrower will use the proceeds of the Series 2012A Bonds to: (i) finance and/or refinance the costs of acquiring, constructing, improving, operating and/or equipping of charter school facilities located at 34696 North Village Lane, San Tan Valley, Arizona (the “Series 2012 Facilities”); (ii) fund any required reserve funds as set forth in the Indenture; (iii) pay capitalized interest on the Series 2012A Bonds; and (iv) pay certain issuance expenses (collectively, the “Series 2012 Project”). The Borrower’s repayment obligation under the Loan Agreement will be evidenced by the Series 2012A Promissory Note executed by the Borrower (the “Series 2012A Promissory Note”).

The Series 2012A Bonds and any Additional Senior Bonds issued on a parity therewith pursuant to the Indenture (collectively, the “Senior Bonds”), are special limited obligations of the Issuer payable exclusively from the Trust Estate pledged, assigned and mortgaged to the Trustee pursuant to the Indenture. The Trust Estate includes: (i) the rights, title and interests of the Issuer under the Loan Agreement (except for Issuer’s Unassigned Rights); (ii) the rights, title and interests of the Issuer in the Project (except the Issuer’s Unassigned Rights), subject to Permitted Encumbrances; (iii) the Revenues and all rights, title and interests of the Issuer in the Pledged Revenues, subject to Permitted Encumbrances (except the Issuer’s Unassigned Rights); (iv) the rights, title and interests of the Issuer and the Borrower under the Promissory Note(s) (except the Issuer’s Unassigned Rights) and the Deed of Trust, Security Agreement, Assignment of Rents and Leases and Fixture Filing, dated as of January 1, 2012, from the Borrower for the benefit of the Trustee as beneficiary thereunder (the “Deed of Trust”); (v) all Funds held by the Trustee pursuant to the Indenture (except amounts on deposit in the Cost of Issuance Fund, the Tax and Insurance Escrow Fund and the Rebate Fund), subject to the exceptions as provided in the Indenture; and (vi) any and all other interests in real or personal property of every name and nature from time to time hereafter by delivery or by writing of any kind specifically mortgaged, pledged or hypothecated.

Funds returned via Bond financing…

Bond refinancing - January 2012

$10,875,000 Bond Amount

Financed with Tax Free Bonds

Bond Issuer – Gov. Bond Seller / Lender


Over $5 Billion in charter school bonds issued

$0

$200

$400

$600

$800

$1,000

$1,200

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

$11 $80

$208

$305 $225

$274 $327

$396

$571

$1,037

$556

$361

$951

$800

$340


Charter School - USCIS Approvals – I-526


American Leadership Academy Spanish Fork

INVESTOR REPAYMENT

16 months

Months to Repay Previous School Investor:


Mountainville Academy

INVESTOR REPAYMENT

37 months


www.edufundamerica.com American Charter Development, LLC Washington Academy

INVESTOR REPAYMENT

26 months

Washington Academy



Thomas Edison Academy

INVESTOR REPAYMENT

36 months



INVESTOR REPAYMENT

22 months

Regan Academy



INVESTOR REPAYMENT

35 months

Summit Academy



INVESTOR REPAYMENT

20 months

Webster Academy



INVESTOR REPAYMENT

21 months

Lincoln Academy



Fast & Proven Return of Investor Funds


Why we Finance Charter Schools

Safe: Government Pays Tuition, Secure: 10 years of Proven Job Creation success Predictable: 10 years Successfully Repaying Investors


Inspired Children

Join us and improve the

lives of children too…


Financing Schools that Inspire Children

Efa ppt 9-2013

Economy & Finance

Transcript of Efa ppt 9-2013