Fifth, the regulation now includes the concept that for smaller businesses, income derived from international trade which is sufficient to support the treaty trader and his or her family should be considered to be a favorable factor when addressing the substantiality of trade in a particular case. Seventh, the INS and State Department will now determine whether an investment is substantial by using inverted sliding scale test - that is, the lower the total cost of the enterprise, the higher, proportionately, the investment must be. Examples will be provided in the Foreign Affairs Manual. Eighth, representatives of news gathering organizations may now apply for E-1 Treaty Trader status but only after attempting to seek I visa classification. Ninth, the final rule rejected a commenter's argument that loans that are secured by the assets of the investment enterprise should count toward the determination of a substantial investment.
Loans are acceptable, but only if the investor is personally liable.
Tenth, the proposed rule that would have deemed research facilities and market research operations ineligible for E classification because the investment would be too speculative has been modified and such investments can be approved. However, investments in non-profit enterprises still will not qualify. The concept of future capacity is new, though the projected future capacity should be realizable within five years from the date the alien commences normal business activities. Fourteenth, the new INS regulations create a two year period for an initial admission and an unlimited number of two year extensions.