How can I make the new commercial enterprise qualify for the Targeted Employment Area EB-5 investment amount if it is not currently located in a TEA? - EB5Investors.com

How can I make the new commercial enterprise qualify for the Targeted Employment Area EB-5 investment amount if it is not currently located in a TEA?

I am planning to invest in an existing, post-1990 business, aka a new commercial enterprise. I am aware that my investment should result in at least a 40% increase in value or employees. If the business is not located within a TEA, assuming it is an office and not a storefront, can I simply move the office to a TEA to qualify for the lower investment requirement?

Answers

Ed Beshara

Ed Beshara

Immigration Attorneys Directory
Answered on

An experienced EB-5 immigration attorney and EB-5 economist can analyze the contiguous census tracts of the street location of the U.S. Business to determine if it is in a TEA. Once the analysis is completed then your EB-5 team can submit a request to the State government for an official letter stating the U.S. business is in a TEA.

Fredrick W Voigtmann

Fredrick W Voigtmann

Immigration Attorneys Directory
Answered on

If you are investing in a new commercial enterprise formed after 11/29/1990, then you do not have to follow the 40% expansion rule; that rule is for investors who purchase an existing business formed on or before 11/29/1990. Also, if you move the NCE location so that it is principally doing business in a TEA, and the 10 new jobs will be created within the TEA, then you can invest the lower amount.

Charles Foster

Charles Foster

Immigration Attorneys Directory
Answered on

Yes, you can move your business into a TEA if that makes business sense or file to get a determination from the designated authority that your business is located in a TEA.

BoBi Ahn

BoBi Ahn

Immigration Attorneys Directory
Answered on

Yes, relocating the qualifying Commercial Enterprisewhich will be responsible for creating 10 or more jobswould qualify it for the TEA investment amount as long as the jobs are created in the TEA.

Raymond Lahoud

Raymond Lahoud

Immigration Attorneys Directory
Answered on

Thank you for your excellent EB-5 investment related question. The company must be located in a TEA for it to qualify for the reduced investment amount. For example, if all of your operations are within a TEA, then it would qualify for TEA designation and, therefore, a reduced investment amount. Moving the company to a TEA zone would likely qualify it under TEA designation.

A Olusanjo Omoniyi

A Olusanjo Omoniyi

Immigration Attorneys Directory
Answered on

You may not need to move. However, it is advisable that you should work with professional(s) particularly, an EB-5 attorney, to ascertain the categorization of the location in question. Also, you can consult your state economic development agency which is typically in charge of designation/classification of TEA. In essence, there is more research that needs to be done on this issue.

Lynne Feldman

Lynne Feldman

Immigration Attorneys Directory
Answered on

If not in a TEA as designated by the State, then you are unlikely to be able to make this work as a TEA with the smaller investment amount.

Bernard P Wolfsdorf

Bernard P Wolfsdorf

Immigration Attorneys Directory
Answered on

The business and jobs must primarily be located in the TEA. Moving the business is an option.

Stephen Berman

Stephen Berman

Immigration Attorneys Directory
Answered on

Yes, you can move the business to a TEA and qualify.

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