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Questions and Answers > EB-5 Direct Investments

How can I use my company that is located in a TEA for direct EB-5 investments?

My company location is supposed to fall under a TEA zone, so I want to get a TEA classification that allows me to get direct EB-5 investment. How do I do that? Are there any other criteria aside from the location?

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    If you are seeking direct investment, you can now only take one investor and you will have to create at least 10 new jobs. But even then, if it is an existing business you are subject to the complex rules. They must be full-time new positions unless it is a troubled business with losses, or under 40% expansion rule, which does not seem to be closely followed. The regulations state: if you “2) Purchase an existing business and "simultaneous or subsequent restructuring or reorganization such that a new commercial enterprise results"; or (3) Expand an existing business through the investment of the required amount, so that a substantial change in the net worth or number of employees results from the investment of capital. Substantial change means a 40 percent increase either in the net worth, or in the number of employees, so that the new net worth, or number of employees amounts to at least 140 percent of the pre-expansion net worth or number of employees.”

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    Julia Roussinova

    Immigration Attorney
    Answered on

    TEA determination is done by USCIS. You should have a comprehensive 5-year business plan done for your direct EB-5 case and have an economist provide applicable TEA data. There are multiple considerations in direct EB-5 cases, such as legal source of funds, funds tracing, EB-5 capital must be at risk of loss and needs to be spent toward requisite job creation of at least 10 full-time positions, and others. Hire an experienced EB-5 immigration attorney to assist you.

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    Daniel A Zeft

    Immigration Attorney
    Answered on

    There are involved answers to your questions. You need a consultation appointment with an immigration attorney. Only one investor can be involved in a direct EB-5 case. Also, if the new commercial enterprise is in a targeted employment area (TEA), then the EB-5 investment can be $800,000, the minimum investment amount.

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    Lynne Feldman

    Immigration Attorney
    Answered on

    USCIS will need to agree based on whether in a rural area or an area of high unemployment.

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    Rebecca Bodony

    Immigration Attorney
    Answered on

    Of note, under the 2022 law, only one direct investor per U.S. entity can qualify for an EB-5 visa (taking away the prior option for multiple foreign direct investors in one non-Regional Center business). The investment funds must be spent on qualifying business expenses that can be tied to the creation of 10 new jobs for U.S. workers in your company (or, in limited circumstances, tied to saving of jobs in a troubled business). The investment funds must be at risk for loss. The investment funds must be tied to a lawful source. There are lots of additional factors to take into consideration for a direct EB-5 and you should schedule a consultation with an EB-5 attorney.

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    Michael A Harris, Esq

    Immigration Attorney
    Answered on

    TEA determinations are made by USCIS at the time of adjudication for a standalone I-526 petition. You will need an economist to provide you the relevant data to show that it falls within a TEA. Having that data before you invest is critical.

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    Stephen Berman

    Immigration Attorney
    Answered on

    It seems to me that you can do that. The location is what determines if the business is in a TEA.