EB-5 Q&A: Where must an EB-5 NCE be located for TEA purposes?



Principally, an EB-5 NCE must be doing business in and creating jobs in a TEA.  The statute and regulations governing the EB-5 Program defines a “targeted employment area” (TEA) as, at the time of investment, a rural area or an area that has experienced unemployment of at least 150 percent of the national average rate. Congress expressly provided for a reduced investment amount in a rural area or an area of high unemployment in order to spur immigrant to invest in new commercial enterprises that are principally doing business in, and creating jobs in, areas of greatest need.


For the purpose of the EB-5 Program, a new commercial enterprise is “principally doing business” in the location where it regularly, systematically, and continuously provides goods or services that support job creation. If the new commercial enterprise provides such goods or services in more than one location, it will be deemed to be “principally doing business” in the location that is most significantly related to the job creation. Factors to be considered in making this determination may include, but are not limited to, (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.


A regional center may encompass a large geographic area which may contain a TEA as well as areas that are not TEA.  The regional center’s TEA qualifying project must be principally doing business and creating jobs in a TEA .