How can I find out if a Regional Center is in a Targeted Employment Area (TEA)?

There are financial advisers who review which of the regional centers are really investing in projects located within a TEA. There is a DC based regional center and one based in California with good track records.

That is an excellent question. and you are correct - an investor may qualify for a reduced minimum investment amount (i.e. $500,000 instead of $1 million) if the investment is made in a TEA. To find out if a regional center''s particular project is in fact in a TEA, my advice is to just ask the regional center. And if the answer is yes, then request that they send you a copy of the letter from the State authority designating the area as a TEA. They have to have such a letter because it needs to be included in any EB-5 filing. That said, I do know that the majority of regional centers only choose projects that are located in TEA''s precisely so that they can offer investors the reduced investment amount.

The regional center should have all of the necessary information to document whether it is in fact in a TEA. If you are planning to do a direct investment, then you would need to consult with an attorney experienced in EB-5 work as well as possibly an economist or similar professional in order to confirm that your project would be in a TEA.

You can review the prospectuses of the offerings from the various regional centers or contact them directly to see if they are offering projects with $500000 minimum investment.

You ask them to send a letter from the State showing the project being located in a targeted employment area.

First of all a Regional Center cannot operate unless its project is in a Target Employment Area (TEA). To find out where are the TEAs is very complicated and one cannot find that out without hiring a lawyer to do the research for him. Each State can designate an area TEA, and each State has the authority to do so. Thus, an ordinary person cannot find that out for every State. Regional Centers usually work closely with the State that Governs their territory and thus have better access to get that TEA designation from appropriate authorities in a State.

Please do not conflate a regional center with an EB-5 investment project. It is not necessary for the regional center to be in a TEA. But is is necessary that the EB-5 investment project be located within a TEA in order for you to invest the lower minimum investment amount of $500,000. You should be able to get this information from the regional center, and the TEA should be referred to in the offering documents, called a "private placement memorandum" or "confidential information memorandum", and in the project''s business plan.

The Regional Center will usually provide proof of TEA status as part of the filing package. Reputable Regional Centers will also provide such proof upon request as part of the initial information sent to prospective investors.

Unfortunately, there is no central government database that maintains this information. EB-5 applicants or organizations wishing to determine if their project is located in a TEA have a few options to choose from:

For projects located in a TEA based on a rural area obtain documentation of the Office of Management and Budget’s designation of the area as being outside the boundary of any city or town having a population of 20,000 or more according to the decennial census.
Regional centers located in targeted employment areas should be able to provide prospective EB-5 applicants with documentation from a state agency or the USCIS evidencing their TEA status. Most regional centers to date are located in TEAs.