How is unemployment calculated to designate a TEA under EB-5?

Under EB-5, a TEA (Targeted Employment Area) is a designated area where investment requirements may be lower, either because it is located in a rural region or because it has high unemployment. When the criterion is unemployment, the calculation follows a comparative approach.

In general terms, the local unemployment rate is compared against the national average for the United States. To qualify based on high unemployment, the area must exceed that average by a margin defined by the program, and this comparison is drawn from official data, typically from the Bureau of Labor Statistics.

The calculation often involves nuances, such as the geographic unit used and the data period, which follow guidance from the relevant agencies. For this reason, whether a specific area qualifies as a TEA should always be confirmed against official sources and the methodology currently in effect.

Because the parameters and required margin can change, verify the current criteria directly with official sources and, if needed, seek specialized support before relying on an area’s TEA designation.

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Victoria Harper

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