Funding

Funding Needed
$62 (Mio)
EB5 Funding
$42 (Mio)
EB-5 Investors
84
Investment Amount
$500,000
Subscription Fee
50,000
Discount Fee
50,000

Jobs

Job Creation per Investor
11.3
Job Creation (Total)
953
Category
Manufacturing
Sub-Category
Motor Vehicle Metal Stamping

Investment

Structure
Loan
Amount of EB-5 investors anticipated for this phase?
84
Expected Maturity
5 years

Immigration

Does this project have approved I-526's?
No
Does this Regional Center have approved I-526's?
Yes
Does this Regional Center have approved I-829's?
Yes

Location

State
Georgia
Location
1500 Chambers County 177, Cusseta, AL 36852

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SRC Ajin-Wooshin Fund V

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Opened: October 16, 2014

Closed: October 13, 2015


Project Description

AJIN USA is an automotive manufacturing facility that specializes in metal parts stamping and robotic welding.  AJIN USA is one of two exclusive suppliers to Kia Motor Manufacturing Georgia (“KMMG”) and exclusive body parts supplier to Hyundai Motor Manufacturing Alabama (“HMMA”). 

AJIN USA is currently located within the Chambers County Development Authority (“CCDA”) formerly known as the Industrial Development Authority of Chambers County, Alabama.
 
In March 2008, AJIN USA entered into a Project Agreement with Chambers County Alabama to locate their 330,000 square foot manufacturing facility ($88.7 million project) at Cusseta Industrial Park in Chambers County.  One of the many incentives AJIN has received is a tax abatement of a significant portion of local, county and state taxes for a period of 10 to 20 years in exchange for job creation within the county.  Since AJIN USA's inception in 2008, the unemployment rate of Chamber's County has decreased by almost 9%.

 

 

 

Reports

SRC Ajin-Wooshin Fund V: Contact Information

Contact Person
Moses Choi
Address (contact)
4197 PLEASANT HILL RD STE 100
Phone
6788827756
Email
moseschoi@srceb-5.com
Web Site
www.srceb-5.com

Project Management

First NameLast NameTitle
ThomasChoiMember

SRC Ajin-Wooshin Fund V: Investments

Reg. D?
Yes
Rule 506
506 (b)
Reg. S?
No
Investment type
Loan
Total amount of estimated funding required for all phases of development(in Millions)?
62
Is this a new commercial enterprise or purchase of an existing troubled business?
New commercial enterprise
What percentage of overall funding has been raised to date?
less than 10%
Does the investor need to be accredited to invest?
Yes
Are returns paid on the investment prior to maturity?
No
Can you describe in more detail how returns are paid, and under what conditions? For instance, are they only paid if the project is positive cash flow or profitable. What expenses must be accounted for and paid prior to distributions are paid to investors?
Capital investments from EB-5 foreign investors will be at risk for at least five years, and the return of the capital investment can occur only after five years, if at all. The EB-5 investors will receive their share of interest income from the EB-5 Loan, net of expenses and the management fees payable to the Regional Center as the manager of the Company. It is anticipated that such net payment will be in an amount equal to 0.285% per annum of the EB-5 Loan, but there is no assurance that members will receive any distributions.
Can you please describe the expected exit strategy and what source(s) of debt or equity are expected to be used to repay the investor’s capital investment?
The Developer is expected to repay the EB-5 Loan at maturity with the proceeds of a long-term financing, its operations or from other sources.
What is the expected term of the investment?
5 years
Can you describe what procedures are in place If the investor needs to liquidate his position before the contracted maturity date of the agreement, and what penalties may be imposed?
If (a) USCIS ultimately denies an investor’s I-526 Petition, (b) an investor withdraws his or her I-526 Petition, or (c) an investor fails to complete the Immigration Processing (as defined below), if the amount of the capital contribution is still held in escrow at such time, any portion of the capital contribution that remains in escrow will be returned to the investor without interest as promptly as possible, but in any event no later than 45 days after we have received the written notice from an investor of I-526 Petition denial, I-526 Petition withdrawal, or Immigration Processing failure. If the investor’s capital contribution is not held in escrow, upon the investor’s request we will make commercially reasonable efforts to redeem the membership interests from the investor for the amount of the capital contribution without interest, subject to the availability of funds. • The Escrow Agent will release to such investor 20% of his or her Capital Contribution Escrow Funds then held in escrow in the Holdback Account, if such funds are still in the Holdback Account. • The Escrow Agent will release to the Company’s general operating account $400,000 (in the case where such investor has received 20% of his or her Capital Contribution Escrow Funds from the Holdback Account) or $500,000 (in the case such investor’s holdback amount was previously released to the Company) from the funds then available in the Holdback Account so that the Company can fund the continued operation without deficit caused by the refund of the denied investor’s capital contribution. • Using the funds then available in the Company’s general operating account, the Company will make commercially reasonable efforts to promptly refund the full amount of such investor’s capital contribution (i.e., $400,000 or $500,000, as applicable). In the event that there are insufficient funds available in the Holdback Account to be distributed and disbursed to the Company’s general operating account, the refund may be delayed.
Have all of the permits and permissions for project development been obtained?
No
Is there any patented intellectual property essential to this project?
No

SRC Ajin-Wooshin Fund V: Fees

What is the fee for subscribing to the investment (Subscription Fee)?
50,000
Do potential investors need to pay a fee to obtain the operating documents, PPM or other subscription documents?
No
If Yes, Is that refundable in the event the investor decides not to invest?
No
Could you please describe the procedure for return of escrow in the event of denial of the I-526 by USCIS?
In the event the Escrow Agent receives a written direction from the LLC and the Subscriber Representative that a Subscriber’s I-526 Petition has been denied (without appeal or after denial of any appeal) by USCIS, the Escrow Agent shall promptly return the Holdback Amount, if such funds are still in the Subscription Holdback Account, to the denied Subscriber identified in such written direction, without deduction or payment of interest. The LLC and the Subscriber Representative shall also include in the written direction to the Escrow Agent instruction to release $400,000.00 (in the case where the denied Subscriber’s Holdback Amount is refunded by the Escrow Agent) or $500,000.00 (in the case where the denied Subscriber’s Holdback Amount has been previously disbursed to the LLC’s general operating account) to be distributed and disbursed to the general operating account of the LLC to fund the remainder of the capital contributions of such Subscribers so the LLC can continue operations without deficit being caused by the refund of the denied investor’s capital contribution in accordance with the terms and conditions set forth in the LLC’s Operating Agreement. Escrow Agent shall rely, conclusively and without further inquiry, upon the LLC and the Subscriber Representative to designate, in writing, the Subscribers whose Holdback Amounts shall be disbursed to the LLC’s general operating account for this purpose. In the event there are insufficient funds available in the Subscription Holdback Account or the LLC’s general operating account to refund all of the $500,000.00 Subscription Proceeds to the denied Subscriber, then such refund may be delayed until there is at least $500,000.00 of funds in the Subscription Holdback Account to enable the refund to the denied Subscriber (taking into account any portion of the Holdback Amount of such denied Subscriber then remaining in the Subscription Holdback Account which would be applied towards such refund).
Does that include the processing of the I-526, I-829 or any other legal fees associated with the immigration application?
No
What fees do you pay to 'finders' or agents?
Negotiated at the time of the agent agreement
If there is no finder or agent, would you reimburse that fee to the investor?
No
Do you pay finder’s fees to attorneys?
Yes
Do you pay fees to unlicensed broker’s or agents?
No

SRC Ajin-Wooshin Fund V: Risks

Risk Factors

Risk FactorDescription
The Ajin Project will be subject to significant development and construction risks, which could have a material adverse effect on related project timetables, costs, and the Developer’s ability to complete the project.The Ajin Project will be subject to a number of risks, including: • changes to plans and specifications; • engineering problems, including defective plans and specifications; • delays in obtaining or inability to obtain necessary permits, licenses, and approvals; • labor disputes or work stoppages; • disputes with and defaults by contractors and subcontractors; • personal injuries to workers and other persons; • environmental, health, and safety issues, including site accidents and the spread of viruses; • weather interferences or delays; • fires and other natural disasters; • lack of sufficient, or delays in availability of, financing; • geological, construction, excavation, regulatory, and equipment problems; and • other unanticipated circumstances or cost increases. The occurrence of any of these development or construction risks could increase the total costs of, or delay or prevent, the completion of the Ajin Project. Unanticipated cost increases may require the Developer to raise or borrow additional capital to complete the Ajin Project, which may negatively affect its ability to service or repay the EB-5 Loan, which could have a material adverse effect on our business, results of operations and financial condition.
The Developer’s revenues may be significantly less than expected, reducing the ability of the Developer to repay the EB-5 Loan.The financial forecasts of the Ajin Project are based on many assumptions. The Developer’s actual results, performance, or achievements may differ materially from any future results, performance, or achievements expressed or implied by these financial forecasts. These financial forecasts are based on our current expectations and assumptions about future events. While we consider these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory, and other risks, contingencies, and uncertainties, most of which are difficult to predict and many of which are beyond our control. The Developer has projected revenues, profitability, and ability to repay the loans based on current estimates, however, actual amounts cannot be predicted with certainty and could be less than expected due to factors that are beyond the control of the Developer, which could have a material adverse effect on our business, results of operations and financial condition.
Can you please describe what conditions could occur in the market that would negatively affect profitability and commercial operations or job creation?
Demand for the Developer’s products is directly related to the vehicle production levels of the Developer’s customers. New vehicle sales and production can be affected by general economic or industry conditions, the level of consumer demand, labor relations issues, fuel prices, fuel efficiency and vehicle safety regulations and other regulatory requirements, government initiatives, trade agreements, the availability and cost of credit, the availability to the Developer’s customers and suppliers of critical components needed to complete the production of vehicles, restructuring actions of the Developer’s customers, end-OEMs and suppliers and other factors. Financial difficulties experienced by any major customer could have a material adverse effect on the Developer if such customer were unable to pay for the products the Developer provides or the Developer experienced a loss of, or material reduction in, business from such customer. As a result of such difficulties, the Developer could experience lost revenues, significant write-offs of accounts receivable, significant impairment charges or additional restructurings, sometimes significantly, from year-to-year, which, in turn, causes fluctuations in the demand for the Developer’s products. The automotive industry is cyclical and sensitive to general economic conditions and other factors, including the global credit markets, interest rates, consumer credit and consumer spending and preferences. An economic downturn, severe weather or other adverse industry conditions that result in even a relatively modest decline in vehicle production levels could reduce the Developer’s sales and thereby adversely affect the Developer’s financial condition, results of operations and cash flows.

SRC Ajin-Wooshin Fund V: Structure

Has the Principal invested their own equity in the project?
No
Are financial statements or records available from the borrower?
Yes
Is collateral on the investment or loan provided?
Yes

SRC Ajin-Wooshin Fund V: EB-5

Is this a loan?
Yes
If the investment into the project is a loan, is the borrower a:
Commercial third party (not related to Regional Center principals)
Can you best describe your operating procedure for the filing of the I-526?
You will select, or offer to the foreign national, an attorney, or list of attorneys that are approved to submit for you
Does this project have approved I-526's?
No
Does this project have approved I-829's?
Yes
Does this Regional Center have approved I-526's?
Yes
Does this Regional Center have approved I-829's?
Yes
Is any of the subscription fee refundable in the event of a denial of the I-526 by USCIS?
Yes
Amount of EB-5 investors anticipated for this phase?
84
What percentage of overall funding is expected to be sourced from EB-5 investors?
translation missing: en.percentage_funding_from_investors.50_75
Are non EB-5 investor’s allowed to participate?
No

Project Exemplar Approval

Does this Project have Exemplar Approval?
No
Date of Exemplar Approval:

Requests for Evidence

Does this Project have Exemplar Approval?
No

I-526

Date of first I-526 Submission:
2011-03-18
Date of first I-526 Approval:
2013-03-05

I-829

Date of first I-829 Submission:
2015-04-08

This data was last updated on:June 08, 2015 05:16 PM

SRC Ajin-Wooshin Fund V: EB-5

Has this project been the subject of a USCIS/SEC/FBI/DOJ/AAO Review, Notice, Investigation or Action
No

This data was last updated on:June 08, 2015 05:16 PM

SRC Ajin-Wooshin Fund V: Job Creation

Is Regional Center located within a Targeted Employment Area (TEA)?
Yes
Is this a Public / Private partnership?
No
Job creation methodology
Implan
Does the job creation rely on direct jobs, capital expenditure, or a combination?
Combination
How many jobs are expected to be created in total? (Direct)
473.7
How many jobs are expected to be created in total? (Indirect & Induced)
479.3
How many jobs are expected to be created in per investor? (Direct)
4.97
How many jobs are expected to be created in per investor? (Indirect & Induced)
5.05
How are jobs allocated to the pool of investors?
10 jobs per investor
Can you describe the job creation model? For instance, is it based on capital injection, or on a direct job creation and indirect job multiplier, or other?
$62 million capital investment will generate new revenue of about $205.7.million. This report utilizes the IMPLAN input/output for Chambers and Lee counties in Alabama and Troup County in Georgia. The IMPLAN final demand multiplier for this 3-county region for auto parts manufacturing is about 4.6335 (see Table B-2), so a total of 953 new jobs would be created. Of these, 473.7 would be direct, 309.3 would be indirect, and 170.0 would be induced jobs.

SRC Ajin-Wooshin Fund V: Reporting

Do you offer periodic reports to investors on the status of the investment?
Yes
If so, what is the frequency of these reports?
Annually
Are these reports produced by you, or by an independent third party such as a auditing or accounting firm?
Yes
If performed by a third party firm, can you please provide details of the scope of the audit and what the report released entails?
Audited financial statements from borrower
Do you have a third party firm that performs employee payroll & HR record keeping services for the project?
No
Do you have a third party firm that performs I-9 verification?
Yes
If Yes, can you provide the name of that firm?
the borrower performs all I-9 verifications
If No, do you perform I-9 verification of the employees?
No
Would you have any objection to an accounting or law firm performing an audit on the payroll, employment or financial records of the project?
No
If you lease space in your facility to third party firms, are they willing to allow an audit of their employment records for the purposes of verifying employment?
Yes

SRC Ajin-Wooshin Fund V : Escrow

Escrow: Yes

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