ILW.COM - the immigration portal Immigration Daily

Home Page


Immigration Daily

Archives

Processing times

Immigration forms

Discussion board

Resources

Blogs

Twitter feed

Immigrant Nation

Attorney2Attorney

CLE Workshops

Immigration books

Advertise on ILW

VIP Network

EB-5

移民日报

About ILW.COM

Connect to us

Make us Homepage

Questions/Comments


SUBSCRIBE

Immigration Daily


Chinese Immig. Daily




The leading
immigration law
publisher - over
50000 pages of
free information!
Copyright
© 1995-
ILW.COM,
American
Immigration LLC.

View RSS Feed

ILW.COM EB-5 Blog

What is a Targeted Employment Area? By Lauren A. Cohen, Esq.

Rate this Entry
One of the requirements of an EB-5 investor is to invest a certain amount of capital in a new commercial enterprise (NCE). The question is, what amount of capital does the investor need to invest? The answer depends on whether or not the NCE is in a targeted employment area (TEA).

According to 8 U.S.C. § 1153(b)(5)(C)(i), the required capital investment amount is $1,000,000. However, 8 U.S.C. § 1153(b)(5)(C)(ii) and 8 C.F.R. § 204.6(f)(2), allows an exception where the NCE is in a targeted employment area. A “targeted employment area” is a rural area or an area experiencing unemployment of at least 150 percent of the national average rate.[1] “Rural area” is defined as outside of a Metropolitan Statistical Area, 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).[2]

The reason why Congress added this exception was to encourage investors to create jobs in areas that have the greatest need. Logically, this would be in rural and areas of higher rates of unemployment. To qualify, the NCE must be considered to be principally doing business in this location. Several factors are examined to determine whether the NCE is principally doing business in that area, which include:

(1) the location of any jobs directly created by the new commercial enterprise;

(2) the location of any expenditure of capital related to the creation of jobs;

(3) where the new commercial enterprise conducts its day-to-day operation; and

(4) where the new commercial enterprise maintains its assets that are utilized in the creation of jobs. Matter of Izummi, 22 I&N Dec. at 174[3].

Another important item to note is that even if a Regional Center was previously designated as a TEA, this does not mean that it will automatically be approved as a TEA for all future investments. An investor must hire a professional Team which includes a qualified economist who can confirm that the NCE is still considered to be located in a TEA.

Additionally, the investor may seek to have an area designated as a TEA. To do so, the following evidence will be required:

(1) evidence that the area is outside of a metropolitan statistical area and outside of a city or town having a population of 20,000 or more;

(2) unemployment data for the relevant metropolitan statistical area or county; or

[1] http://www.law.cornell.edu/uscode/text/8/1153
[2] Id
[3] http://www.justice.gov/eoir/vll/intdec/vol22/3360.pdf

Submit "What is a Targeted Employment Area? By Lauren A. Cohen, Esq." to Facebook Submit "What is a Targeted Employment Area? By Lauren A. Cohen, Esq." to Twitter Submit "What is a Targeted Employment Area? By Lauren A. Cohen, Esq." to Google Submit "What is a Targeted Employment Area? By Lauren A. Cohen, Esq." to StumbleUpon Submit "What is a Targeted Employment Area? By Lauren A. Cohen, Esq." to Reddit Submit "What is a Targeted Employment Area? By Lauren A. Cohen, Esq." to Digg Submit "What is a Targeted Employment Area? By Lauren A. Cohen, Esq." to del.icio.us

Tags: None Add / Edit Tags

Comments

Put Free Immigration Law Headlines On Your Website

Immigration Daily: the news source for legal professionals. Free! Join 35000+ readers Enter your email address here: