On November 2, 2002, President Bush signed into law the Twenty-First Century Department of Justice Appropriations Authorization Act. This Act amends cases related to alien entrepreneurs, and affects the adjudication of both Form I-526 and Form I-829. The Act affects all I-526 cases approved after January 1, 1995 and prior to August 31, 1998, along with all I-526 cases filed on or after November 2, 2002. Form I-829 cases filed prior to November 2, 2002 are also affected by the Act.
Changes implemented by the Act include the following:
1.Alien entrepreneurs are no longer required to establish a commercial enterprise. However, adjudicators are still advised to determine whether or not the petitioner has established a commercial enterprise. If no enterprise has been established, adjudicators will still need to know the number of employees the enterprise supports; alien entrepreneur petitioners are required to create at least 10 new jobs.
2.The new Act does not remove the requirement that the commercial enterprise be considered new. However, the Act clarifies the definition of new, allowing for a business established before November 29, 1990 to be considered new “if since that date it has been expanded so that a substantial change in the net worth or number of employees has occurred.” A substantial change is defined as either a 40% increase in net worth or the number of employees. Commercial enterprises established before November 29, 1990 are also considered new if they have been restructured or reorganized since that date to create a new commercial enterprise.
3· For all cases involving the filing of Form I-526 after August 31, 1998, entrepreneurs are still required to invest in capital in only one commercial enterprise. Combined investments in multiple commercial enterprises do not meet the requirement for proper filing.
4. The Act defines the term “full-time employment” as employment that requires at least 35 hours of service per week.
5. The definition of “qualifying employee” has not changed. The term still applies to U.S. citizens, aliens lawfully admitted for permanent residence and other immigrants lawfully allowed to work in the U.S.
6. The Act amends section 216A of the Immigration and Nationality Act to include the term “limited partnership” within the term “commercial enterprise”.
All Forms I-526 and I-829 filed on or after November 2, 2002 must reflect the changes made in this recently passed Act.