Rural TEAs: A Key Investment Opportunity in the EB-5 Program

The EB-5 Immigrant Investor Program, established by the U.S. Congress in 1990, provides a pathway to U.S. permanent residency for foreign investors who invest in job-creating enterprises. One notable investment vehicle within the EB-5 program is the "rural tea" investment. This term may be unfamiliar to many, but it represents a crucial and appealing option for investors seeking to contribute to economic growth in less populated areas of the United States while obtaining U.S. residency. In this article, we will explore what a rural TEA is, its significance in the EB-5 program, and why it presents a compelling investment opportunity.

What is a Rural Tea?

In the context of the EB-5 program, "rural tea" stands for a rural Targeted Employment Area (TEA) investment. To understand this, we need to break it down into its components:

• Rural refers to areas that are located outside of urban centers and generally have a lower population density. According to the U.S. Citizenship and Immigration Services (USCIS), a rural area is one that is not located within a metropolitan statistical area (MSA) and has a population of fewer than 20,000 inhabitants.

  
  

• Targeted Employment Area (TEAs) are regions that have been identified as economically distressed. They are eligible for certain benefits under the EB-5 program, such as a reduced minimum investment amount. A rural TEA, therefore, is a specific type of TEA that is located in a rural area.

  
  

The EB-5 Program and Rural TEAs

The EB-5 program allows foreign nationals to obtain a U.S. green card by investing in a commercial enterprise that creates or preserves at least ten full-time jobs for U.S. workers. The minimum investment amount is typically $1.05 million. However, if the investment is made in a TEA, which includes rural TEAs, the minimum investment amount is reduced to $800,000.

Why Invest in a Rural TEA?

1. Reduced Investment Threshold: One of the most significant advantages of investing in a rural TEA is the reduced minimum investment requirement. This lower threshold of $800,000 makes it a more accessible option for many investors compared to the standard $1.05 million.

2. Economic Development and Job Creation: Investing in a rural TEA helps stimulate economic development in underdeveloped areas. These investments can lead to job creation and infrastructure development, contributing to the overall growth of the region. By investing in these areas, EB-5 investors play a direct role in improving local economies and providing employment opportunities for residents.

3. Priority Processing: Investments in rural Targeted Employment Areas (TEAs) may benefit from priority processing, which can expedite the adjudication of I-526 petitions due to the program's focus on promoting economic development in underserved regions.

4. Set-Aside Visa:  Each year, a portion of the total EB-5 visa quota is set aside specifically for these targeted areas. Investors from countries experiencing visa retrogression may be able to “skip the line” and jump ahead of investors who filed before them, in a non-TEA project, by investing in a rural TEA.  

Rural tea investments, or investments in rural Targeted Employment Areas (TEAs), present a unique and appealing opportunity within the EB-5 Immigrant Investor Program. They offer the advantage of a reduced investment threshold, contribute to the economic development of less populated areas, and support job creation in communities that benefit greatly from such investments. As with any investment, careful consideration and due diligence are essential to ensure that the project aligns with your investment goals and meets the requirements of the EB-5 program.

At EB-5 Choice, we offer numerous projects that fall under the TEA investment category. Reach out to our team today to set up a consultation and learn more about our rural project offerings.