Targeted Employment Areas –

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We have briefly touched on the subject of targeted employment areas, which are commonly known as „TEAs‟. It is important that you have a good understanding of their functioning.

Before a regional center is created, the developer will research the census tracts as determined by the department of labor of his state. Based on this official information, he can then determine if the project qualifies as a TEA under population trend guidelines; wherein the population cannot exceed 20,000.

The census tract must be recent and based on the most current census information obtained by the state.

Each county and area within the state will have a census tract as they often rely on federal funding for supplementary support. If a TEA is not identified, then the default position is always a $1 million dollar investment threshold for the investor.
An alternative method used to qualify as a TEA is determined by the unemployment levels in the area in which the sponsor seeks to locate the project.

As such, if the unemployment level surpasses 150% of the national average as determined by the Department of Labor statistics, then the sponsor has an opportunity to outline the territory for his TEA.

The advantage, of course, is that the sponsor will be able to offer the investment to foreign nationals at the $500,000 level. level in the country is 10%, For example, if the average unemployment then the sponsor will need to identify unemployment levels at 15% or higher.

The purpose is to encourage local economic stimulus through sponsorcreated programs.

With such unemployment levels, the investor must be cautious of the economic prospects of the program.

Accordingly, it is important to ensure that the sponsor has a clearly identified and successful track record of prior projects and approvals.

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