On May 6th the State of California Governor’s Office of Business and Economic Development (GO-Biz) hosted a teleconference for EB-5 stakeholders regarding new unemployment data for the State of California and its effects on Targeted Employment Areas (TEA’s) policy. During the call, GO-Biz unveiled how 2012 unemployment data within the State of California demonstrates an improving economy, which in turn has affected pre-designated targeted employment areas in California.
In addition to updating stakeholders of the changes in TEA’s, GO-Biz also introduced a new policy which allows for applications for special TEA designations for projects that do not meet the existing pre-designated areas. The re-certification for previously designated TEAs will not change.
GO-Biz will certify the aforementioned Special TEA applications under the following criteria:
- If projects are located within an area of 12 or fewer contiguous Census Tracts with a total average unemployment rate of 150% of the national average.
- Requests must include a table listing of each census tract with its corresponding unemployment rate and a map showing the project address.
- A supporting letter from the local Economic Development Corporation (EDC) or County or City where the project is located. The letter must indicate the economic development corporation’s concurrence that the proposed census tract will reasonably be a source of workforce for the project.