IDEA EB5 Bonds Project Fund II

Project Description

IDEA EB-5 Bonds Project Background

IDEA Public Schools is a growing network of K-12 public charter schools serving more than 20,000 students in 36 schools throughout the state of Texas. They have successfully continued to expand as they opened an additional 4 schools in 2015.  The current Bond offering for 2016 will fund an additional 5 new Charter Schools and expand 3 other Charter schools.

New Construction:

1. Rio Grande City

2. WW White

3. Tres Lagos

4. Brackenridge

5. Ewing Halsel

Expansion:

1. Riverview Phase 2

2. Eastside Phase 2

3. Rundberg Phase 2

IDEA is on track to becoming the largest producer of low-income college graduates in the Rio Grande Valley of Texas. This phase of growth will increase the number of low-income college graduates in the Valley Texas by 50 percent, fundamentally changing the economic landscape of our communities. By 2017, IDEA will operate 60 schools in three regions educating thousands of students on their road to college. IDEA has created a model where they can continue to succeed by using Texas State funding to pay for the schools that are built. IDEA has determined that each student is funded by the State of Texas for $8,500 per year. The state funding allows for IDEA Public Schools to sell revenue bonds to fund the initial construction of the schools which is later paid back by the Texas State funding. Each school estimates to enroll approximately 450 students in year 1 creating a revenue of approximately $3.8 million. In year 2 they expect the enrollment to increase to 670 students creating a revenue of approximately $5.7 million. This revenue is then used to pay the interest and financing of the bonds. The same bonds that are being sold to IDEA EB-5 Bonds, LLC for the purposes of EB-5.