The EB-5 Targeted Employment Area (TEA)

A Targeted Employment Area (TEA) is an area in the United States where the investment threshold for an investor to qualify for an EB-5 visa is USD 800,000 (instead of the usual USD 1,050,000 threshold applying across the United States).

A detailed article onVisa EB-5.

Definition

There are 2 types of TEA recognised byUnited States Citizenship and Immigration Services (USCIS): rural areas and high unemployment areas.

A rural area

An area may be designated a TEA where, at the time of application, it is a rural area. This is defined as an area not within a Metropolitan Statistical Area (MSA) (as designated by the Office of Management and Budget) or the outer boundary of any city or town with a population of 20,000 or more.

A high unemployment area

An area may be designated a TEA on the basis of high unemployment where it experiences unemployment of at least 150% of the national average rate as determined by the Bureau of Labor Statistics. In 2018, this average was 3.9%, so at present, to qualify as a TEA on the basis of high unemployment, an area must have an unemployment rate of at least 5.9% (3.9 × 150%).

Determining a TEA

Where the location of the proposed new business has not yet been determined to be a TEA, the investor has the option of gathering the relevant publicly available federal or state statistics themselves and submitting them with the petition so that USCIS can make a new TEA determination.

There is no central list of targeted employment areas, but state agencies in different states maintain their own lists or criteria for determining TEAs, as well as information on local unemployment rates that may be cited in an application. Different US states support the process by allowing applicants to request certification for a particular area to be designated a TEA.

USCIS respects a state’s determination but periodically reviews the criteria used by the state to confirm that they comply with the guidance.

There are also independently compiled sources of information on unemployment by census tract, including interactive maps, helping investors identify TEAs.

TEA designation in different states

Hawaii

According to the official Hawaii website, the following parts of the state are TEAs:

• The island of Hawaii
• The island of Kauai
• Some areas of the island of Oahu (however, the island is an urban area and does not qualify in its entirety)
• Small parts of the islands of Maui, Molokai and Lanai (however, these islands are metropolitan statistical areas, so most parts do not qualify).

California

In California, investors may petition the state government to designate a particular subdivision of an area as a high unemployment area (more than 150% of the national average). The California Department of Housing and Community Development provides a list of street ranges and census tracts for TEAs.

Florida

The state of Florida maintains a list of Targeted Employment Areas, currently numbering 33.

The rural areas comprise the counties of Bradford, Calhoun, Citrus, Columbia, DeSoto, Dixie, Franklin, Glades, Gulf, Hamilton, Hardee, Hendry, Jackson, Lafayette, Levy, Liberty, Madison, Monroe (except Key West), Okeechobee, Putnam, Sumter, Suwannee, Taylor, Union, Walton and Washington.

The list of non-rural high unemployment areas changes periodically with fluctuations in the unemployment rate. The August 2012 list included the Palm Coast metropolitan statistical area (Flagler County), Hernando County, the City of Hialeah (in Miami-Dade County), the City of Miami Gardens (in Miami-Dade County) and the City of Fort Pierce (in St. Lucie County).

Texas

The City of Austin in Texas lists 31 designated TEAs and also provides an unemployment threshold of 11.1% (150% of the national unemployment rate of 7.4%, as determined by the Bureau of Labor Statistics) for a non-rural area to qualify as a TEA.

Washington

Washington, the US state, maintains its own list of TEAs.

Minnesota

The state of Minnesota commissioned research by Carlson Consulting Enterprise to better understand how the state could make use of the EB-5 investor programme to promote job growth in the state, particularly in high unemployment areas. The programme was also highlighted as a way of improving employment for Black residents in North Minneapolis (a designated area) by matching them with EB-5 investors from Asia.

Look up the latest TEA list athere.