By: James Cormie and Jennifer Hermansky
The California Governor’s Office of Business and Economic Development (GO-Biz) announced yesterday during a conference call on EB-5 immigrant investor visas that investors, starting May 1, may apply for custom certification that their project is in a Targeted Employment Area (TEA). With this new policy, an EB-5 investor or a Regional Center supplies information from the county, city, or local Economic Development Corporation and other details about the project directly to GO-Biz. If the project is located in an area with 12 contiguous census tracts, or less, that have an unemployment rate exceeding 150% of the national unemployment average as determined by the U.S. Department of Labor, GO-Biz will certify a special TEA tabulation. This represents a step in the right direction supplementing the old methodology, which did not allow for custom TEA designations. It is important to note, however, that the State will only accept a group of contiguous census tracts comprised of 12 tracts of less, which still limits applicants in creating TEAs.
Prior to this announcement, GO-Biz calculated a TEA based its own calculations of areas of high unemployment with the State. Each year, California published a list of pre-certified TEAs containing certain cities, towns, and counties that were certified as areas of high unemployment. Custom certifications where the applicant would select a group of contiguous census tracts were not available in the State. The new customized TEA option will add much-needed flexibility to the program and encourage investment in the State of California.
DISCLAIMER: The views expressed in this article are solely the views of the author and do not necessarily represent the views of the publisher, its employees. or its affiliates. The information found on this website is intended to be general information; it is not legal or financial advice. Specific legal or financial advice can only be given by a licensed professional with full knowledge of all the facts and circumstances of your particular situation. You should seek consultation with legal, immigration, and financial experts prior to participating in the EB-5 program Posting a question on this website does not create an attorney-client relationship. All questions you post will be available to the public; do not include confidential information in your question.
