The U.S. Bureau of Labor Statistics (BLS) has released updated labor statistics for 2024, which are used in calculating Targeted Employment Areas (TEAs) for the EB-5 visa program that USCIS.
Michael Kester, economist from Impact DataSource, says that this data update “is one piece of the typical ‘census-share’ calculation that USCIS has historically accepted as evidence for census tract calculations for EB-5 high-unemployment TEAs.”
Accordingly, Impact DataSource has updated its TEA Mapping App with these new numbers. The app is developed in collaboration with EB5 Investors Magazine.
“There is no change to ‘Rural’ TEAs and no change to HUA TEAs that are based on a ‘straight [American Community Survey] ACS’ calculation. So, while this is a significant data update, many EB-5 projects will not be impacted,” Kester says.
How the data is used to calculate the EB-5 TEA map
Rural TEAs are determined by population. They must be located outside of cities or towns with populations of 20,000 or more, and must be outside metropolitan statistical areas (MSA). The datasets for Rural TEAs are updated less frequently than those for HUA TEAs.
“As always, EB-5 stakeholders can continue to use the TEA app as a guide but should consult an experienced EB-5 economist to verify that the location can meet the TEA guidelines,” Kester said.
TEAs are typically updated at this time of year, following the U.S. government’s updates to its labor and other statistics. Last time, approximately 100 rural TEAs and MSA project designations changed.
The update affects high unemployment TEAs (HUA) calculated using the “census-share” method. It does not affect Rural TEAs or HUA TEAs calculated using the “straight ACS” method.
TEAs are specific geographic areas that the U.S. Citizenship and Immigration Services (USCIS) uses to determine the required investment amount for an EB-5 application. If an investment is made in a designated TEA, the investor can qualify for a reduced investment threshold. The correct amounts are $800,000 for TEAs and $1,050,000 for all other cases according to EB/5 requirements.
The ACS survey, conducted by the U.S. Census Bureau, provides detailed demographic, social, economic, and housing data used to calculate unemployment rates and other statistics necessary for designating HUAs.
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.
