A Target Employment Area (TEA) designation can significantly benefit EB-5 investors by lowering the required investment amount. When an EB-5 project is located within a TEA, the minimum investment drops from $1.05 million to $800,000. TEA status is determined based on the project’s location, which must qualify as either a rural area or a high-unemployment area (HUA). The TEA designation is requested as part of the EB-5 investor’s I-526E petition, and if you are investing through a regional center, they will inform you if their projects are located within a TEA.

What is a Rural Target Employment Area ?

A rural TEA  must meet specific criteria to qualify under the EB-5 program. To be designated as a rural TEA, the project location:

1. Must not be located within a Metropolitan Statistical Area (MSA): Defined by the U.S. Office of Management and Budget, MSAs are urbanized regions with high population density.
2. Must not be on the outskirts of a town or city with a population of 20,000 or more residents: This is determined by U.S. Census data.

If the project is located in a qualifying rural area at the time of the EB-5 investment, it may be eligible for the reduced investment threshold and TEA designation.

What is a High Unemployment Area TEA?

A high-unemployment area TEA must also satisfy specific criteria:

1. The project location must have an unemployment rate of at least 150% of the national average.
2. The area must be in a county or MSA with a population of 20,000 or more residents.

If the EB-5 project’s principal location is in a high-unemployment area at the time of the investment, it can receive TEA designation. This provides investors with access to the lower $800,000 investment threshold.

How to get TEA Designation

Target Employment Area (TEA) designation is adjudicated as part of the I-526E petition process. To obtain TEA status, the EB-5 project’s regional center must submit evidence proving the project’s location qualifies as either a rural or high-unemployment area. TEA designation is vital for investors aiming to reduce their EB-5 investment to $800,000. By qualifying through a rural or high-unemployment area, investors gain access to a more affordable threshold while ensuring their project meets USCIS guidelines. Additionally, working with a regional center that specializes in TEA projects can further streamline the process and reduce the administrative burden.

Key Steps to Prove TEA Status:

• USCIS Adjudication: Submit evidence directly to USCIS within the I-526E petition. This may include unemployment data, state letters, or other statistical analyses proving the project is in a rural or high-unemployment area.
• State Government Certification: Obtain a letter from an authorized state government agency certifying the project’s location qualifies as a TEA. Many states maintain lists of pre-designated TEAs, which can simplify this process.

Designated TEAs

Some states maintain certified lists of pre-identified Target Employment Areas. While these lists are helpful, TEA certifications are still issued on a case-by-case basis. Investors should verify their project’s TEA status before submitting their I-526E petition.