Why are most regional centers located in Targeted Employment Areas? Is a regional center required to to be located within a TEA? What are the geographic requirements for becoming a regional center?
There are no geographic requirements for establishing a regional center. While your observation is correct that most regional centers are in TEAs, there is no requirement that they must be located in TEAs. In actuality, the establishment of an regional center depends on the plans and decisions of its planners and founders.
A regional center located within a TEA allows for a reduced investment amount of $500,000. They are not required to be in a TEA; however, to qualify for a reduced investment amount and thus be more competitive, a job creating enterprise must be within a TEA or rural area.
Regional Centers are not necessarily in TEAs, but the projects themselves are located in TEAs, which allow for the reduced investment amount. With as many EB-5 projects in the marketplace in TEAs as there are, having one requiring the full $1 million investment can be a tough sell.
You do to have to locate specifically in a TEA to qualify as a regional center. However, if you wish to attract $500,000 investors you should include a TEA area. The USCIS publishes guidelines for regional center applications. You should read and adhere to those.
A regional center will cover a certain geographical area. Within this geographical area there will be locations that are TEAs. The job creating entities are required to be in TEAs if the investment requirement is to be $500,000.
There really are not any geographic limitations; however, we have seen a reluctance by the DHS to allow multi-state regional centers. The regional centers are not required to be within a TEA; the regional center can encompass an area that is a TEA. There are numerous advantages to having a TEA, as that reduces the requisite investment.
Regional centers are not required to be in a TEA. TEA investments, whether in a regional center or not, require only $500,000, not $1 million. It is much easier to market a $500,000 investment. That is why most regional centers are also in TEAs. As for geographical requirements, there are regional centers as small as a small county and as large as an entire state. The regional center would show data to prove the positive economic effects their project(s) will have on the regional economy and therefore, justify the geographic boundary for the regional center.
The reason most regional centers are in TEAs is because the investment is $500,000 instead of the required $1 million. It is not a requirement that regional centers be located in a TEA. However, they are more competitive because the investment is lower.
There are no specific geographic requirements for becoming a regional center. However, the territory applied for must have a nexus with the project(s). Although most regional centers have Targeted Employment Areas, there are very few that qualify in their entirety and there is no requirement that a regional center project must be located within a TEA. However, in practice, most regional center projects locate within a rural area or a TEA in order to take advantage of the reduced investment amount ($500,000), as it is often difficult to market a $1 million investment.
