Targeted Employment Area (TEA)
A Targeted Employment Area (TEA) for EB-5 Visa purpose allows $500,000 USD investment rather than the regular $1 Million USD.
The statute and regulations governing the EB-5 Program defines a "targeted employment area" as, at the time of investment “a rural area or an area that has experienced high unemployment of at least 150 percent of the national average rate.”
'High Unemployment' - Is an area that, at the time of investment, is an area experiencing unemployment of at least 150 percent of the national average rate.
'Rural Area' - means any area not within either a metropolitan statistical area (as designated by the Office of Management and Budget) or 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).
In other words, a rural area must be both outside of a metropolitan statistical area and outside of a city or town having a population of 20,000 or more.
Congress expressly provided for a reduced investment amount in a rural area or an area of high unemployment in order to spur immigrants to invest in new commercial enterprises that are principally doing business in, and creating jobs in, areas of greatest need. In order for the lower capital investment amount of $500,000 to apply, the new commercial enterprise into which the immigrant invests must be principally doing business in the targeted employment area and must create a majority of the required jobs in the targeted employment area.
The USCIS Regional Center designation allows the requisite job-creation to be indirect and induced, as well as direct. A common misconception is that the Regional Center designation alone provides for the reduced investment level.
When you have a Targeted Employment Area within a Regional Center you get a EB-5 project that requires $500,000 USD and allows job-creation to take place through direct and indirect/induced means, but sometimes all indirect/induced.