A targeted employment area is a rural or high unemployment area. When an EB-5 project is located in a TEA, the EB-5 investors have the advantage of ring eligible for the EB-5 Program’s reduced minimum investment amount of $500,000. This is very important for EB-5 project developers looking to raise capital, as the reduced minimum investment amount is much more attractive to prospective EB-5 investors.

An EB-5 project may be eligible to receive TEA designation as a rural area if it is:

1. Not located a metropolitan statistical area (as designated by the Office of Management and Budget); Or,

2. Not located on the outskirts of a city or town with a population of 20,000+.

An EB-5 project may be eligible to receive TEA designation as a high unemployment area if it has experienced an unemployment rate that’s 150% the U.S. national average.

There are a few ways that an EB-5 investor can provide proof that the project they selected is located within a designated TEA. TEA designation is adjudicated during the I-526 Petition process. Thus, evidence must be sent along for the investor’s I-526 Petition. Types of evidence accepted include:

1. The state state government can provide a letter of certification showing evidence that the project is located in a TEA.

2. The U.S. Bureau of Labor Statistic’s Local Area Unemployment Statistics office contains technical bulletins that can be used as evidence for TEA designation.

3. Other sources of privately collected statistical evidence.

Look up the state where your EB-5 project is located to determine the best way to obtain TEA evidence. Consult with an immigration attorney before filing your I-526 Petition to ensure that it’s filled out correctly and contains all the necessary evidence to avoid petition denials or delays.

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