Potential TEA Definitions: The Most Recently Proposed Legislation

Though very unlikely to actually expire, the EB-5 Regional Center Program is again set to sunset in the coming fall and the industry continues to go through another round of negotiations this summer. It is expected that the Program will be reauthorized in some form or another – most likely accompanied by reform. Any changes to the Program will likely be far-ranging, from integrity measures, to investment amounts, to TEA definitions and processes.

Here is a quick overview of the TEA definitions proposed in the two most recent legislative proposals, one from Senators Chuck Grassley and Patrick Leahy and one from Senator John Cornyn, both introduced in April. Though different in their specifics, the proposals follow very similar trends.

* It is noted that the language in the latest version of the Cornyn proposal, as of June 2017, omits the requirement that the distressed rural census tract be outside of an MSA, which is presumed to be a drafting oversight.
** Our best interpretation is that, since Distressed Rural Census Tracts are (presumed to be) in Rural Areas, the set-aside rules of the Cornyn proposal also include these Distressed Rural Areas.

We’ve written a comprehensive article about the trends regarding TEA definitions exhibited in these pieces of proposed legislation and other recent proposals, which will be published in the forthcoming issue of IIUSA’s Regional Center Business Journal. Stay tuned for its release and other EB-5 news from our EB-5 economists.

Update Aug 1, 2017: See our full article in the IIUSA Regional Center Business Journal on page 30.