Targeted Employment Areas or TEAs refer to either rural areas or regions experiencing high unemployment. The United States Citizenship and Immigration Services (USCIS) designates these areas to encourage investment and boost local economies. In terms of EB-5, the Targeted Employment Area (TEA) is distinguished by lower investment thresholds, making them attractive to investors.

A Targeted Employment Area (TEA) is an area that, at the time of investment, is either a rural area or an area experiencing high unemployment.

• Targeted Employment Area (TEA) : An area with high unemployment is classified as an area with an unemployment rate of at least 150% of the national average. USCIS primarily uses data from the American Community Survey published by the U.S. Census Bureau or other reliable federal or state statistics to make this determination.

• Rural TEA : A Rural TEA is essentially a specific type of Targeted Employment Area. It is an area that, at the time of investment, is not located within an MSA or within the outer boundary of any city or town having a population of 20,000 or less, based on the most recent decennial census.

• Lower Investment Requirement: The most significant benefit of investing in a Targeted Employment Area or Rural TEA is the reduced capital requirement. While the standard EB-5 investment is $1.05 million, investing in a Targeted Employment Area lowers this threshold to $800,000. This reduction makes the EB-5 program more accessible to a wider array of international investors.
• Priority Processing: Investments in Targeted Employment Areas are often given priority during the review process by USCIS. This can result in faster processing times for the investor’s visa application, accelerating their path to U.S. residency.
• Community Support: As these areas are often in need of economic development and job creation, projects within Targeted Employment Areas are typically well-received by local communities. This can mean a more favorable business environment, local support, and even potential incentives from local governments.
• Positive Social Impact: Finally, investing in Targeted Employment Areas allows investors to make a positive social impact. By driving job growth and contributing to economic revitalization, investors can feel confident that their investment is making a real difference in local communities.

• Limited Project Opportunities: Finding viable investment projects in rural areas may be challenging. These areas often have smaller markets and may not have as many investment opportunities compared to urban centers.
• Risk Factors: Rural areas may be more susceptible to economic downturns or industry-specific challenges. This could potentially increase the investment risk compared to projects in more robust urban economies.
• Lack of Infrastructure: Some rural areas may have limited infrastructure, such as transportation networks, utilities, and workforce development EB-5 programs. This could affect the overall feasibility and success of the project.