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What happens to an EB-5 project if the unemployment rate of its TEA falls below 150% of the national average?

I am a potential EB-5 investor looking at a project in a TEA where the unemployment rate seems to have decreased below 150% of the national average. The EB-5 project broke ground a few years ago when the local unemployment rate met the TEA requirements. However, looking at the employment statistics now, the unemployment rate is most likely to be below the 150% threshold. Does this affect the minimum investment I will need to invest to qualify for EB-5?

Answers

• Julia Roussinova

  Immigration Attorney

  Answered on August 26, 2019

  If it qualifies at the time you file the I-526 petition, this should be fine.

• Salvatore Picataggio

  Immigration Attorney

  Answered on August 23, 2019

  Each I-526 applicant has to meet the requirements at the time of filing.

• Bernard P Wolfsdorf

  Immigration Attorney

  Answered on August 20, 2019

  If it qualifies as a TEA at the time you apply, that should be acceptable.

• A Olusanjo Omoniyi

  Immigration Attorney

  Answered on August 19, 2019

  The investment amount will not be affected regardless of the falls in the unemployment rate in any of these TEAs. Also, as a potential investor, it is advisable you should seek consultation with an EB-5 attorney. Furthermore, be aware that a new regime of rules and regulations in the impending EB-5 regulations, beginning from Nov. 21, are likely to affect your investment if you wait beyond Nov. 21.

• Charles Foster

  Immigration Attorney

  Answered on August 19, 2019

  If a project is approved based upon a qualified TEA, it is not likely that there will be a periodically re-calculation of whether or not the TEA still meets the requirement. It would all depend upon the timing and other factors, but there is not a continuous requirement that a TEA be updated. This is particularly true given the fact that the unemployment rates, in terms of both the national average and in any given census tract, are constantly changing.

• Phuong Le

  Immigration Attorney

  Answered on August 16, 2019

  TEA eligibility is generally calculated at the time of I-526 filing (or when the funds are fully committed to the NCE). Easiest way to find out is to ask the project for proof that it remains a TEA right now.

• Lynne Feldman

  Immigration Attorney

  Answered on August 16, 2019

  They would normally only look at the statistics at the time you filed.

• Stephen Berman

  Immigration Attorney

  Answered on August 16, 2019

  I would assume it does. And check out the new EB-5 rules which will change how TEAs are designated.

• Marko Issever

  EB-5 Broker Dealer

  Answered on August 16, 2019

  I am assuming that the regional center you are dealing with has a valid TEA designation letter. Once issued, those designations are generally valid for one year. If the TEA letter is still valid by the time you file your I-526 petition or at least make the required investment, you should still qualify for the lower investment amount.

• Belma Demirovic Chinchoy

  Immigration Attorney

  Answered on August 16, 2019

  Yes, based on the info provided, it seems this project no longer qualifies for a $500,000 investment, as the TEA qualification is determined at the time of I-526 filing.

• Daniel A Zeft

  Immigration Attorney

  Answered on August 16, 2019

  The unemployment rate which applies is the unemployment rate when the I-526 petition is filed.