California Announces New Policy for State EB-5 Designations

Effective June 19, 2012, California’s newly-established Governor’s Office of Business and Economic Development (GO-Biz) announced a new policy for certifying a Targeted Employment Area(‘TEA’).  To consolidate all business development programs, GO-Biz has taken over all TEA designations.

According to GO-Biz, “If your project is NOT in a qualifying metropolitan statistical area (‘MSA’), county, city, or individual census tract designated as a TEA by the State of California, your project does NOT qualify for certification from the state.  However, you can still apply to U.S. Immigration Services without the state certification and provide evidence on your own showing that the new enterprise is in a high unemployment area.”   In addition, the “designation and certification of TEAs is an exhaustive list of TEAs by the State of California.  There will be no other areas or subareas designated and certified as TEAs.”  SOURCE

Here is a list of the Designated MSAs, cities or counties in California:  CA TEA LIST.

TEA Applicants cannot link multiple counties, cities or census tracts together to create an area of high unemployment and receive a certification from the state.  Only projects that are located directly in a designated metropolitan statistical areas, counties, cities, or census tracts having high unemployment rates are eligible.  SOURCE

In addition, If your project is located in a designated TEA then the state will provide a customized certification letter to prove that.  Please send the following information to: EB5info@gov.ca.gov (Sub: “Certification Application”)

• Name of individual investor or entity
• Name of new business or project
• Address of new business or project
• City, County and Zip Code
• Census Tract Number
• Description of the project, including job creation if applicable (500 words or less)
• Mailing address for sending the certificate
• SOURCE