MA GEIR: A Possible Alternative to H-1B Cap for Entrepreneurs

In 2014, Massachusetts Governor Deval Patrick signed “An Act Promoting Economic Growth Across the Commonwealth” which established the Global Entrepreneur in Residence (GEIR) Program to be piloted at the University of Massachusetts Boston and the University of Massachusetts Lowell. The program was established to retain innovative and qualified foreign national entrepreneurs. The hallmark of the GEIR program is that it provides an alternative to the H-1B Cap quota by providing access to a cap-exempt H-1B approval for qualified beneficiaries.

What is the H-1B Cap?

The H-1B visa program allows U.S. companies to sponsor foreign nationals for specialty occupations; however, the challenge lies in the annual quota limitation on the number of new H-1B visas. Fiscal Year 2017 saw over 236,000 H-1B petitions filed for only 65,000 available H-1B visas (with an additional 20,000 H-1B visas reserved for foreign nationals with a Master’s degree or higher from a U.S. institution). Despite this demand, discussions of changing the H-1B program, including increasing the quota, remain highly contentious.

How Does the GEIR Program Fit in?

The innovative GEIR Program provides a mechanism to apply for a cap-exempt H-1B visa. This exception is based on the collaboration of foreign-born entrepreneurs with an institution of higher education, which is recognized as a cap-exempt organization. Such collaborations create a useful avenue for foreign-born entrepreneurs who seek to benefit from an H-1B visa and build their companies in the Commonwealth.

GEIR and its University Partners

The GEIR program was piloted at the University of Massachusetts Boston and the University of Massachusetts Lowell through their Venture Development Center and New Venture Initiative, respectively. More recently, a GEIR program was also implemented by Babson College, whose GEIR laboratory is located in the same building as our Fragomen Boston office at 100 High Street.

At the University of Massachusetts, there are two avenues of cap-exempt sponsorship. First, the entrepreneur can pursue a cap-exempt petition by being directly employed and sponsored by the university in a part-time capacity. The entrepreneur can then separately file a cap-exempt petition for concurrent employment sponsored by his or her own start-up company. Alternatively, the start-up company can serve as the primary H-1B petitioner so long as the start-up employment is physically located on the campus of the GEIR-affiliated university. In either scenario, the entrepreneur will be required to engage in entrepreneurial mentoring or similar educational roles for students at the school.

Babson College’s GEIR program follows this second avenue, where the start-up company is located at the college’s GEIR office facilities and files its own H-1B petition. As such, foreign national entrepreneurs can apply to Babson’s GEIR so long as the start-up enterprise is sufficiently established to meet the criteria of the H-1B program. While not an exhaustive list of requirements, eligibility includes: the ability to pay the prevailing wage; the presence of a Board of Directors with the ability to control the employment of the foreign national beneficiary; the requirement of at least a Bachelor’s degree or equivalent for the proffered position; and the issuance of an Employer Identification Number (EIN) from the Internal Revenue Service.  In consideration for this cap-exempt opportunity, GEIR beneficiaries will dedicate a specific amount of time in a mentor/support capacity for Babson College.

Leveraging the GEIR Initiative

We believe that the GEIR initiative in Massachusetts provides an excellent strategic alternative to the H-1B cap lottery for qualified foreign nationals. If you think you may qualify as a GEIR applicant or have any questions about the program, it is a good idea to meet with your immigration counsel to evaluate your applicability.