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Targeted Employment Area

In order to be designated as a Targeted Employment Area (TEA), the project must be located in either a rural area or in a location that has high unemployment. TEA designation is requested within the EB-5 investor’s I-526 petition. If you invest in a regional center, they will let you know if their projects are located in a TEA.

Rural areas must not be within a metropolitan statistical area as labeled by the U.S. Office of Management and Budget. A rural area must also not be on the outskirts of a town or city that has a population of 20,000 residents or more as determined through the U.S. Census. If the project location is a rural area at the time of the EB-5 investment, then it may be designated as a TEA.

To receive TEA designation, the location must experience an unemployment rate of at least 150 percent of the U.S. national average. High unemployment areas must also be in a county or metropolitan statistical location that has a population of 20,000 residents or more. An EB-5 qualified project can receive TEA designation if the principal location of the project is located in a high unemployment area at the time the EB-5 investment is made.

TEA designation is adjudicated as part of the I-526 application. The EB-5 visa applicant must provide sufficient evidence that their project is located within a rural or high unemployment area by submitting a TEA designation letter to USCIS.

If the EB-5 investment meets the $1 million threshold, there is no need for state involvement in the TEA designation process. If, however, the investment is made at the $500,000 state involvement may be necessary. TEA designation can be pursued in one of two ways:

  • TEA designation through USCIS Designation requires the applicant to submit evidence that the location of the new commercial enterprise in which the applicant is investing has an average unemployment rate of 150 percent of the national average. These may include:
    • Contacting the Local Area Unemployment Statistics Office (LAUS) to obtain published technical bulletins
    • Getting a letter from state government to provide rural area or high unemployment area evidence
    • Providing other statistical documentation
  • TEA designation by the state government, where the applicant can submit a letter from an authorized state government body stating that the location of the new commercial enterprise has been designated a high unemployment area.

Below is a partial list of a few states that provide a certified list of targeted employment areas that have already been identified.

CaliforniaColoradoWashington, and Idaho.