Since the 1990s, the EB-5 Immigrant Investor Program has been a straightforward and reliable route to a U.S. Green Card for eligible foreign investors. Under this program, a foreign national provides investment capital that stimulates the U.S. economy and creates jobs for American workers. In exchange, the investor and their qualified family members gain U.S. lawful permanent resident status.
Unfortunately, some “unreserved” visa category investors face visa backlogs that result in approval delays.
But what if there was a way to avoid the backlog and qualify with a lower required investment amount?
There is. That’s where EB-5 targeted employment area (TEA) projects come in, and high-unemployment projects are a type of TEA.
In this article, we’ll explain what foreign investors should know about getting a Green Card with EB-5 high-unemployment projects.
Why Are High-Unemployment Areas Important for EB-5 Investors?
What Defines a High-Unemployment Area?Rural, High-Unemployment, and Infrastructure EB-5 Projects: What’s the Difference?Invest in a High-Unemployment EB-5 Project With EB5AN
Invest in a High-Unemployment EB-5 Project With EB5AN
Why Are High-Unemployment Areas Important for EB-5 Investors?
Under the EB-5 program, an applicant typically makes a capital investment of at least $1,050,000 in a new commercial enterprise. But certain types of projects provide benefits that not all projects offer.
Benefits of Targeted Employment Areas
An immigrant investor qualifies for special benefits if they fund a project located in a targeted employment area. The EB-5 program provides these incentives because TEAs are locations in particular need of additional jobs and economic stimulus.
To encourage investment in these areas, applicants who fund projects in TEAs receive benefits such as:
- A lower required minimum investment amount of $800,000.
- Access to reserved set-side visa categories.
High-unemployment areas fall under one of these reserved set-aside visa categories.
What Defines a High-Unemployment Area?
A high-unemployment TEA project is located in an area where the unemployment rate is equal to or greater than 150% of the national average unemployment rate, based on the labor force employment measure for the census tract.
For example, the U.S. unemployment rate in August 2024 was approximately 4.4%. This means that a project that conducts its activities in a geographic area that has an unemployment rate of 6.6% would be eligible for designation as a high-unemployment TEA project.
Even though it’s not part of the definition of high-unemployment TEA projects are usually located in populous, urban areas, so they’re sometimes called “urban TEA” projects.
Rural, High-Unemployment, and Infrastructure EB-5 Projects: What’s the Difference?
The EB-5 Reform and Integrity Act of 2022 (RIA) allocates visas between three set-aside visa categories. In other words, there is an additional new “waiting line” for investors who invest in such projects.
Let’s take a look at what they have in common and how they differ.
| Rural Area Projects | High-Unemployment Area Projects | Public Infrastructure Projects | |
| Minimum Required Investment | $800,000 | $800,000 | $800,000 |
| Reserved From Total Visa Pool | 20% | 10% | 2% |
| Priority Processing | Yes | No | No |
| Approval Delays for Chinese and Indian Applicants | No | Officially not yet, but likely. | No |
| Key Criteria | Population of no more than 20,000 and not near a metropolitan statistical area. | Area with an unemployment rate of at least 150% of the national average rate. | Unspecified, but must be government approved. |
Which Set-Aside Category Project to Invest In
Each of these set-aside categories can be a good choice for the right investor. However, according to recent data, the high-unemployment category may already be oversubscribed, so the rural TEA category may be a better option for investors from high-demand countries like India and China.
Investors from low-demand countries are better suited to reap the benefits of high-unemployment TEA projects, including the flexibility to invest in urban locations.
For rural EB-5 investors, other unique advantages are available, as outlined below.
Priority Processing of Rural Projects
The main advantage of selecting a rural project is priority processing beyond that of other reserved visa categories.
This prioritization reflects the fact that such projects are located in settings with less economic activity and are therefore in particular need of additional job creation. So, in order to stimulate this job creation, the EB-5 program offers quicker processing to EB-5 investors who funnel their funds into rural projects.
Increased Availability of Rural Visas
The second advantage is the greater availability of rural TEA visas—20% of the visa quota goes to rural visas, whereas the high-unemployment and infrastructure categories receive only 10% and 2%, respectively.
Because of these two factors—greater visa availability and priority processing—EB-5 applicants are likely to face less competition, less risk, and even faster approval times when they make qualifying investments in projects located in rural areas through the regional center program.
Invest in a High-Unemployment EB-5 Project With EB5AN
You can gain lawful permanent residence status in the United States faster than most other aspiring immigrants by investing in a high-unemployment TEA project under the EB-5 program. Depending on your country of birth, you can select which set-aside category best suits your immigration plans. To make informed choices and save yourself time, effort, and money, work with a top-notch EB-5 firm.
In our 10+ years, EB5AN has helped over 2,300 families obtain U.S. legal permanent resident status. Our offerings include low-risk high-unemployment EB-5 projects, such as ONE Tampa.
Book a free call with us today to learn more.
