Questions and Answers > EB-5 Investments

How do I create an EB-5 project in a TEA?

I am planning to create an EB-5 project as I have some investors. My project can take funding from them and also create an EB-5 opportunity. How can I find a TEA location and if I create an organization there, should the employees be residing in that area only?

Answers

• Bernard P Wolfsdorf

  Immigration Attorney

  Answered on April 12, 2021

  There are two ways to invest in a TEA: one is to select a location in a rural area, and the other is to find a high-unemployment area. A rural area is any area other than an area within a standard metropolitan statistical area, and within the outer boundary of any city or town having a population of 20,000 or more based on the most recent decennial census of the United States. A high-unemployment area is an area that has experienced unemployment of at least 150 percent of the national average rate. Most states active have a process to obtain confirmation, although presently the federal authorities determine this. The jobs must be within the TEA.

• Dale Schwartz

  Immigration Attorney

  Answered on April 7, 2021

  You can certainly start a project in a TEA and invite investors to join you. There is no list of qualified TEA areas. In the past, each state could determine if an area was "rural" or "a high unemployment area." But last year, the Trump Administration took away the ability of the states to determine this.

• Belma Demirovic Chinchoy

  Immigration Attorney

  Answered on April 6, 2021

  You should speak with an economist who can evaluate the potential locations for you and advise you regarding commuting patterns.

• Fredrick W Voigtmann

  Immigration Attorney

  Answered on April 6, 2021

  For the lower required investment amount of $900,000, the new commercial enterprise must be principally doing business in a TEA. That does not mean that all employees must be residing within the TEA. Principally doing business terminology is not very clearly defined by USCIS, but in general it means the location where: Any jobs directly created by the new commercial enterprise; Any expenditure of capital related to the creation of jobs; day-to-day operation of the The new commercial enterprise; and assets used by the new commercial enterprise in the creation of jobs. Also, it is the location where the business regularly, systematically, and continuously provides goods or services that support job creation. If the new commercial enterprise provides such goods or services in more than one location, it will be principally doing business in the location most significantly related to the job creation.

• Lynne Feldman

  Immigration Attorney

  Answered on April 6, 2021

  The address determines if in a TEA or not, then the project has to be approved by USCIS with Form I-924 and lots of supporting documents. (You can look at the Form instructions to get some idea of what is needed.) Then the investors invest and file the I-526 with supporting documents for their conditional green card approval.