What are the TEA rules for a chain of EB-5 businesses? - EB5Investors.com

What are the TEA rules for a chain of EB-5 businesses?

I am interested in EB-5 direct investment. I want to open a chain of fitness centers or yoga studios in different TEAs. Would having a chain in different locations qualify under EB-5? If the yoga or fitness trainers are not available in the TEAs for employment, can we recruit people from anywhere in the United States? Or do the jobs created have to come from the TEA where each business is located?

Answers

J Bruce Weinman

J Bruce Weinman

Immigration Attorneys
Answered on

It depends on how the business is structured and what acts as the "New Commercial Enterprise."

Ed Beshara

Ed Beshara

Immigration Attorneys
Answered on

The TEA letter of geography designation will usually cover several counties. Therefore, each location will require a TEA designation letter and it is advisable that the jobs will have to be created within the TEA geography.

John J Downey

John J Downey

Immigration Attorneys
Answered on

The jobs need to be created in the TEA, but the people do not. You may recruit any eligible person.

Oliver Huiyue Qiu

Oliver Huiyue Qiu

Immigration Attorneys
Answered on

TEA refers to a Targeted Employment Area. It is a narrowly defined geographic area that in no way can cover the entire United States. If you have a chain business with multiple locations planned in several states, you will need to get a separate TEA approvals for each location. At the time of the TEA application, there is no need to establish where your future employees will reside.

Fredrick W Voigtmann

Fredrick W Voigtmann

Immigration Attorneys
Answered on

The general rule is that the new commercial enterprise (NCE) must be "principally doing business" in a TEA. The factors that will determine this are: (1) the location of jobs directly created, (2) the location of capital expenditures related to job creation, (3) where the NCE conducts its day-to-day operations, and (4) where the NCE maintains its assets that are utilized in job creation. The recruitment locations (where you find your employees) do not matter so much as where the jobs will be located, where the funds to create the jobs will be spent, where the NCE has its assets, and where it conducts its business activity. If your NCE has its headquarters in a TEA, and most of its employees and assets in one or more TEAs, then you make an argument that your NCE is principally doing business in a TEA. You should consult with an experienced EB-5 immigration attorney who can advise you on the details.

Melanie Yang

Melanie Yang

Immigration Attorneys
Answered on

Your yoga or fitness center must locate in TEA areas, but the employees for your yoga or fitness center can come from nearby cities (not TEAs). However, they must work in your yoga or fitness centers in the TEAs.

Salvatore Picataggio

Salvatore Picataggio

Immigration Attorneys
Answered on

The job creating entities themselves need to be located in TEAs. If the project is associated with a regional center, you can count indirect job creation. If not, only those directly hired by the entity will count.

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