Presently, a total of $1mm invested in an EB-5 project located in a TEA represents 2 individual investments, which in turn requires the creation of 20 jobs. If the minimum $500,000 investment amount is eliminated, the same 1 million will represent an investment from 1 rather than 2 investors, and as such, only require the creation.
Without a TEA, investors and developers would have little or no motivation to create and develop projects in under-developed and rural areas. This would frustrate and could eliminate entirely any benefit that those communities receive from EB-5 investment, which stimulate both employment and business growth.
EB-5 investment accounts for 1% of overall immigrant investment and this is the category that is most likely to stimulate economy.