What is a Targeted Employment Area for EB-5 Investments?

The EB-5 Immigrant Investor Program’s intent is to stimulate economic growth and job creation in the United States by attracting foreign investment into various regions within the United States that are in need of economic stimulus and job creation.

To be eligible for permanent residency via the EB-5 Program, a foreign investor must invest a minimum of $1,050,000.  This minimum investment can be reduced to $800,000 should the foreign investor invest in a Targeted Employment Area (TEA).

In this article we will:

  • Explain what is a Targeted Employment Area (TEA)?
  • The difference between High Unemployment TEA, and Rural TEAs.
  • How to find a Targeted Employment Area.
  • Why the EB-5 investment amount is lower for Targeted Employment Areas.
  • What infrastructure projects have to do with TEAs.

 

What is a Targeted Employment Area (TEA)?

A TEA is a designation created by the U.S. Congress and enforced by the U.S. Citizenship and Immigration Services (USCIS) to attract investment in areas that experience high unemployment rates or in rural areas.  Therefore, there are two types of TEAs; Rural Areas and High Unemployment Areas.  TEAs must have at least an unemployment rate of 150% of the national average.

The EB-5 Reform an Integrity Act of 2022 (RIA) brought forward visa set-aside categories or also known as reserved visas.  There is a set aside of 32% of all EB-5 Visas. It created an annual set-aside of 10% of all the EB-5 visas for investments made in high-unemployment TEAs and an annual set-aside of 20% of all the EB-5 visas for investments made in rural TEAs. These set-asides offer post-RIA investors a potentially immediately available visa upon I-526Eapproval, even if they are from a backlogged country and offer an investment minimum of $800,000.

High-Unemployment TEA

For an area to qualify as a high-unemployment TEA, an area must have an unemployment rate of at least 150% of the national U.S. average unemployment rate. 

High-unemployment TEAs can now only include the census tract of the investment project and directly adjacent census tracts. This new definition was established by the EB-5 Reform and Integrity Act of 2022 (RIA).  TEA designations are granted by The U.S. Citizenship and Immigration Services. High-unemployment designation is valid for two years and can be renewed in two-year increments.

The set-asides offer post-RIA investors a potentially immediately available visa upon I-526E or I-526 approval, even if they are from a backlogged country.

Rural TEA

A Rural TEA is an area that is outside of a metropolitan statistical area and beyond the outer boundary of a city or town with a population of 20,000 inhabitants or more. Rural TEAs encourage EB5 rural investment in rural areas that have a need for economic development and job creation.

Rural EB-5 petitioners are eligible for priority processing, although the exact timeline for processing is not yet defined by USCIS. The EB-5 Reform and Integrity Act of 2022 established an annual set-aside of 20% of all EB-5 visas for investments made in rural TEAs. This set-aside offers post-RIA investors a potentially immediately available visa upon I-526Eapproval, even if they are from a backlogged country. Additionally, rural EB-5petitions may receive priority processing, which is an average of a 12-monthprocessing time.

How do I find a targeted employment area?

A targeted employment area list can be found by using a TEA mapping tool.  Invest in the USA (IIUSA), the EB-5 industry’s trade organization provides an interactive TEA mapping tool found here:  https://iiusa.org/resources-data/targeted-employment-areas/.  One can access the TEA map and review in-depth data about each census track. The map is updated annually with labor data released by the U.S. Bureau of Labor Statistics by county.

Why is the EB-5 investment amount lower for targeted employment areas?

The EB-5 investment amount in a Rural or High Unemployment Area TEA or Infrastructure project is reduced to $800,000 from $1,050,000 based on geographic and unemployment data issued by the U.S. Bureau of Labor Statistics.

Infrastructure Projects

In addition to targeted employment areas, infrastructure projects also have a visa set-aside of 2% of the total EB-5 visas, and they are treated similarly to TEA EB5 projects in terms of the required investment amount.

The EB-5 Reform and Integrity Act of 2022 defines between "targeted employment areas” and “infrastructure” projects; however, infrastructure projects are treated similarly to TEA projects as they have the same investment amount of $800,000 and also have a visa set-aside of 2% of the total EB-5 visas.

Peachtree Group Projects

Peachtree Group projects are in Targeted Employment Areas. Current projects include:

Taking the Next Steps with Peachtree

Here’s how you can begin your journey to U.S. residency with an EB-5 investment, guided every step of the way by Peachtree Group's expertise and dedication to simplicity, transparency, and success. Learn more about The Peachtree Advantage.

Visit Our Website

Start by visiting our website where you can learn more about our specific EB-5 investment opportunities.

We designed our site to be user-friendly and simple.

Pass Along Your Contact Information

Take a moment to fill out the contact form on our website.

When we’ve got your information, one of our investor relations managers will reach out to you.  

 

 

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Many foreign investors have considered investing overseas to achieve portfolio diversification. Investing in US commercial real estate funds can be a particularly attractive option.  In addition to shifting some assets to stable, US dollar-denominated assets, a portfolio of commercial real estate assets should provide less volatile returns than a single residential home or single asset commercial real estate transactions.

 

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Investing in commercial real estate debt involves providing loans to property owners or developers. This strategy brings forth several key benefits:

  • Predictable Income: Debt investors typically earn consistent interest income from the loans they provide. This dependable income stream can particularly appeal to income-oriented investors, such as retirees.
  • Lower Risk Profile: Debt investments are considered less risky than equity investments. As a lender, you have a priority claim on the property's income and assets,     reducing exposure to market volatility.
  • Asset-Backed Security: Commercial real estate debt is secured by physical assets, which serve as collateral, providing an added layer of security for investors in the event of default.
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The Appeal of Equity Investments involves owning a stake in the property itself. Here are the notable advantages of equity investments:

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  • Diversification: Investing in commercial real estate equity allows investors to diversify their portfolios further as they gain exposure to physical assets that may     behave differently than traditional financial assets.
  • Control and Decision-Making: Equity investors often have a say in property management and strategic decisions, allowing for more active involvement and influence over the asset's performance.
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A savvy investor can further optimize their portfolio by diversifying across both debt and equity investments in commercial real estate. This hybrid approach balances stable income from debt investments with the potential for higher returns from equity investments. It is particularly appealing in times of economic uncertainty, providing a hedge against market volatility and multiple avenues for wealth generation.

 

Advantages of US Private Equity Funds

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When looking to invest with a fund manager, consider the track record of the fund as a whole, and the experience of the individual executives on the team.  In your due diligence, understand the investment process of the manager: how do they identify, underwrite, close, and administer individual transactions?  Do they have a meaningful focus based on their experience?  Have they established a successful track record?

Answering these questions will get you on the path to finding a reputable fund manager motivated to protect and grow your investment. It’s not easy to invest overseas, but with the right knowledge and partner, it can be a very rewarding experience.

About Peachtree Group

Peachtree Group is an investment firm driving growth with a diverse portfolio of commercial real estate assets and other ventures, with a specialty in hospitality. We’ve executed hundreds of investments since inception with a focus on real estate acquisition, development, and lending. Today, we manage billions in equity, augmented by services designed to protect, support, and grow your investment.

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What is a Targeted Employment Area for EB-5 Investments?

This article establishes what constitutes a Targeted Employment Area (TEA) for the EB-5 visa program. It covers the definition and significance of TEAs, the criteria for designation, and explains how investing in a TEA can benefit EB-5 applicants, including the lower investment threshold. The blog will also guide readers on how to find and verify TEAs, and will include practical examples to help illustrate the benefits and process.

The EB-5 Immigrant Investor Program’s intent is to stimulate economic growth and job creation in the United States by attracting foreign investment into various regions within the United States that are in need of economic stimulus and job creation.

To be eligible for permanent residency via the EB-5 Program, a foreign investor must invest a minimum of $1,050,000.  This minimum investment can be reduced to $800,000 should the foreign investor invest in a Targeted Employment Area (TEA).

In this article we will:

  • Explain what is a Targeted Employment Area (TEA)?
  • The difference between High Unemployment TEA, and Rural TEAs.
  • How to find a Targeted Employment Area.
  • Why the EB-5 investment amount is lower for Targeted Employment Areas.
  • What infrastructure projects have to do with TEAs.

 

What is a Targeted Employment Area (TEA)?

A TEA is a designation created by the U.S. Congress and enforced by the U.S. Citizenship and Immigration Services (USCIS) to attract investment in areas that experience high unemployment rates or in rural areas.  Therefore, there are two types of TEAs; Rural Areas and High Unemployment Areas.  TEAs must have at least an unemployment rate of 150% of the national average.

The EB-5 Reform an Integrity Act of 2022 (RIA) brought forward visa set-aside categories or also known as reserved visas.  There is a set aside of 32% of all EB-5 Visas. It created an annual set-aside of 10% of all the EB-5 visas for investments made in high-unemployment TEAs and an annual set-aside of 20% of all the EB-5 visas for investments made in rural TEAs. These set-asides offer post-RIA investors a potentially immediately available visa upon I-526Eapproval, even if they are from a backlogged country and offer an investment minimum of $800,000.

High-Unemployment TEA

For an area to qualify as a high-unemployment TEA, an area must have an unemployment rate of at least 150% of the national U.S. average unemployment rate. 

High-unemployment TEAs can now only include the census tract of the investment project and directly adjacent census tracts. This new definition was established by the EB-5 Reform and Integrity Act of 2022 (RIA).  TEA designations are granted by The U.S. Citizenship and Immigration Services. High-unemployment designation is valid for two years and can be renewed in two-year increments.

The set-asides offer post-RIA investors a potentially immediately available visa upon I-526E or I-526 approval, even if they are from a backlogged country.

Rural TEA

A Rural TEA is an area that is outside of a metropolitan statistical area and beyond the outer boundary of a city or town with a population of 20,000 inhabitants or more. Rural TEAs encourage EB5 rural investment in rural areas that have a need for economic development and job creation.

Rural EB-5 petitioners are eligible for priority processing, although the exact timeline for processing is not yet defined by USCIS. The EB-5 Reform and Integrity Act of 2022 established an annual set-aside of 20% of all EB-5 visas for investments made in rural TEAs. This set-aside offers post-RIA investors a potentially immediately available visa upon I-526Eapproval, even if they are from a backlogged country. Additionally, rural EB-5petitions may receive priority processing, which is an average of a 12-monthprocessing time.

How do I find a targeted employment area?

A targeted employment area list can be found by using a TEA mapping tool.  Invest in the USA (IIUSA), the EB-5 industry’s trade organization provides an interactive TEA mapping tool found here:  https://iiusa.org/resources-data/targeted-employment-areas/.  One can access the TEA map and review in-depth data about each census track. The map is updated annually with labor data released by the U.S. Bureau of Labor Statistics by county.

Why is the EB-5 investment amount lower for targeted employment areas?

The EB-5 investment amount in a Rural or High Unemployment Area TEA or Infrastructure project is reduced to $800,000 from $1,050,000 based on geographic and unemployment data issued by the U.S. Bureau of Labor Statistics.

Infrastructure Projects

In addition to targeted employment areas, infrastructure projects also have a visa set-aside of 2% of the total EB-5 visas, and they are treated similarly to TEA EB5 projects in terms of the required investment amount.

The EB-5 Reform and Integrity Act of 2022 defines between "targeted employment areas” and “infrastructure” projects; however, infrastructure projects are treated similarly to TEA projects as they have the same investment amount of $800,000 and also have a visa set-aside of 2% of the total EB-5 visas.

Peachtree Group Projects

Peachtree Group projects are in Targeted Employment Areas. Current projects include:

Taking the Next Steps with Peachtree

Here’s how you can begin your journey to U.S. residency with an EB-5 investment, guided every step of the way by Peachtree Group's expertise and dedication to simplicity, transparency, and success. Learn more about The Peachtree Advantage.

Visit Our Website

Start by visiting our website where you can learn more about our specific EB-5 investment opportunities.

We designed our site to be user-friendly and simple.

Pass Along Your Contact Information

Take a moment to fill out the contact form on our website.

When we’ve got your information, one of our investor relations managers will reach out to you.  

 

 

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What to Know Before Investing in US Real Estate

Investing in US commercial real estate funds can be an attractive option for foreign investors looking to shift assets to stable, US dollar-denominated assets. Before investing, be sure you understand the types of investments and the benefits for each.

Many foreign investors have considered investing overseas to achieve portfolio diversification. Investing in US commercial real estate funds can be a particularly attractive option.  In addition to shifting some assets to stable, US dollar-denominated assets, a portfolio of commercial real estate assets should provide less volatile returns than a single residential home or single asset commercial real estate transactions.

 

Benefits of Debt Investments


Investing in commercial real estate debt involves providing loans to property owners or developers. This strategy brings forth several key benefits:

  • Predictable Income: Debt investors typically earn consistent interest income from the loans they provide. This dependable income stream can particularly appeal to income-oriented investors, such as retirees.
  • Lower Risk Profile: Debt investments are considered less risky than equity investments. As a lender, you have a priority claim on the property's income and assets,     reducing exposure to market volatility.
  • Asset-Backed Security: Commercial real estate debt is secured by physical assets, which serve as collateral, providing an added layer of security for investors in the event of default.
  • Steady Cash Flow: Debt investments often have fixed interest rates and regular payment schedules, allowing investors to plan their income with greater certainty.

 

Benefits of Equity Investments


The Appeal of Equity Investments involves owning a stake in the property itself. Here are the notable advantages of equity investments:

  • Potential for Higher Returns: Equity investors benefit from the property's appreciation in value over time. In addition to rental income, they can earn significant profits when the property is sold.
  • Diversification: Investing in commercial real estate equity allows investors to diversify their portfolios further as they gain exposure to physical assets that may     behave differently than traditional financial assets.
  • Control and Decision-Making: Equity investors often have a say in property management and strategic decisions, allowing for more active involvement and influence over the asset's performance.
  • Tax Benefits: Equity investors can use tax deductions, such as depreciation and interest expenses, to reduce their taxable income.

 

A savvy investor can further optimize their portfolio by diversifying across both debt and equity investments in commercial real estate. This hybrid approach balances stable income from debt investments with the potential for higher returns from equity investments. It is particularly appealing in times of economic uncertainty, providing a hedge against market volatility and multiple avenues for wealth generation.

 

Advantages of US Private Equity Funds

Private equity real estate funds in the United States provide an opportunity for investors to diversify in two ways.  First, by diversifying away from ordinary, publicly traded debt and equity securities, investors can earn returns that are uncorrelated to the broader stock market. Second, by investing in a fund with professional management, investors can earn returns that are less volatile than single asset investing while benefiting from the expertise and experience of the management team.  

 

When looking to invest with a fund manager, consider the track record of the fund as a whole, and the experience of the individual executives on the team.  In your due diligence, understand the investment process of the manager: how do they identify, underwrite, close, and administer individual transactions?  Do they have a meaningful focus based on their experience?  Have they established a successful track record?

Answering these questions will get you on the path to finding a reputable fund manager motivated to protect and grow your investment. It’s not easy to invest overseas, but with the right knowledge and partner, it can be a very rewarding experience.

About Peachtree Group

Peachtree Group is an investment firm driving growth with a diverse portfolio of commercial real estate assets and other ventures, with a specialty in hospitality. We’ve executed hundreds of investments since inception with a focus on real estate acquisition, development, and lending. Today, we manage billions in equity, augmented by services designed to protect, support, and grow your investment.