What happens to my investment if an EB-5 direct business area becomes a TEA?

Your petition is based on eligibility at the time of filing the I-526 petition. We usually take a conservative approach to any kind of change to the investment after filing.

Unfortunately, it is highly unlikely that one can ask for reduction/refund of investment fund if an area becomes a TEA after investment, even if the initial investment is a direct investment. Once an investment is made, the fund is already paid to establish the business enterprise and the I-526 petition is filed with all necessary documentation that showed the required amount of $1 million was already being utilized for the enterprise. Generally, one cannot lower the initial investment of $1 million to $500,000 because of some sort of subsequent reclassification of the area as a TEA area. Advisably, consult an EB-5 attorney for further analysis.

No, you cannot. TEA eligibility is decided either at the time EB-5 capital is released to the NCE/issuer or at the time the I-526 is filed (if the funds were initially deposited into escrow). Subsequent TEA designations will basically have no effect.

If you make a direct EB-5 investment of $1 million in a new business enterprise and its location is subsequently recognized as a Targeted Economic Area (TEA), under certain conditions you may be able to reduce your investment. It depends upon the terms and conditions of the investment whether you are eligible to do so and whether or not the enterprise has met the definition of a TEA at the time you made your investment.

An EB-5 application is generally adjudicated based upon conditions at time of filing. If the project area is designated as a TEA after the I-526 petition is filed, an EB-5 investor can not pull any of his/her investment funds out of the project.100 percent of the individual EB-5 investor''s funds, as originally committed to the investment and as described in the project's offering documents, must remain "at risk" until the investor's I-829 petition is approved. You should consult with an experienced and licensed immigration attorney when planning your EB-5 investment.

The TEA is determined at the time of filing your I-526 or time of investment. If that area is not a TEA when you invest the money to the project, you will have to invest at least $1 million under the current law and cannot withdraw part of the money even when this area becomes a TEA in a later time.

Whether the location of your business is in a TEA at the time of EB-5 investment is the factor. So, having the location designated as a TEA subsequent to the investment and filing would not qualify your business as being eligible for the $500,000 minimum investment.

The issue really concerns what is the status of the business and geographic area at the time of your investment, or at the time of the filing of your I-526 petition. If, at the time of filing the business was not in a TEA, then you would be required to maintain your $1 million investment in the business. To better understand, you should consult a lawyer specializing in EB-5 direct investment projects.

They are going to look at the designation at the time the I-526 is filed.

You have to qualify at the time you file your I-526 EB-5 application. Technically, if the area becomes a TEA, you could refile and show eligibility for a reduced amount of investment.