the trump organization is partnering with a developer on a texas hotel project that seeks to tap a controversial program granting green cards to foreigners who invest in the u.s. the federal eb-5 program gives up to 10,000 green cards a year to foreigners who invest at least $500,000 in u.s. businesses deemed to create at least 10 american jobs per investor. the republican presidential nominee<u+2019>s company is lending the trump name to the 33-story luxury hotel and condominium development in downtown austin, while its partner, global management resources, would take charge of the construction, according to marketing materials reviewed by the wall street journal. the developer is marketing the project in china, according to the materials. donald trump has made tighter immigration control a pillar of his presidential campaign. he has also criticized china<u+2019>s trade and financial policies, blaming them for economic woes at home. <u+201c>our growth strategy is to expand the trump hotels portfolio by strategically opening properties in key u.s. and international locations,<u+201d> said a representative for trump hotels, part of the trump organization. the representative said the company hasn<u+2019>t invested its own capital in the austin project, but remains interested in the market from a brand and management standpoint. global management executives didn<u+2019>t respond to a request for comment. the eb-5 program was created in 1990, and for much of its history was used by only a few hundred investors a year. but since 2008, real-estate developers have flocked to it as a form of low-cost loans for projects. because many foreign investors are motivated primarily by the prospect of a green card<u+2014>not the financial investment<u+2014>they tend to accept below-market interest rates, meaning big savings for developers. a large majority of those investors in recent years have hailed from china, typically accounting for more than 80% of eb-5 visas. at least $8.7 billion has been invested in the u.s. economy through the program since oct. 1, 2012, and an estimated 35,140 jobs have been created for u.s. workers through foreign investment via eb-5, according to the immigrant investor program office at u.s. citizenship and immigration services. while some in congress have criticized the program<u+2019>s premise<u+2014>giving green cards to wealthy investors<u+2014>other issues also have cast a cloud over the program in recent years. some developers and middlemen who have raised money through the program have been alleged to be involved in fraudulent schemes. the program also has become dominated by developers of projects in wealthy neighborhoods who are using a provision meant to aid economically ailing ones. a study released wednesday by the u.s. government accountability office found that just 12% of investment went to projects located in a census tract with an unemployment rate of at least 8%, even though those projects benefited from a provision earmarked for high-unemployment areas. a large chunk<u+2014>36%<u+2014>was for projects in a tract with an unemployment rate of 4% or lower. the program is due to expire in december, and lawmakers are clashing over proposed changes. the entity pooling the eb-5 money for the $170 million trump-branded hotel, renewable texas energy regional center llc, is seeking $40 million from 80 eb-5 investors. the center estimated the project will create 1,427 direct and indirect jobs. the hotel will have 255 rooms and 22 condominium units and an outdoor rooftop terrace. it is a five-minute walk to austin<u+2019>s 6th street entertainment district. trump hotels will manage the property, according to documents on the center<u+2019>s website. while mr. trump has run for president, his company has continued to find new business opportunities around the world. in recent years, most of mr. trump<u+2019>s real-estate deals have been branding agreements in which he has licensed his name to others but hasn<u+2019>t taken any of the financial risk. exceptions include the trump international hotel, which opened recently in a converted post office building in washington, d.c. another trump-branded project has applied for eb-5 funding: an apartment tower in jersey city, n.j., being developed by kushner cos. and kabr group. the chief executive of kushner is jared kushner, who is married to mr. trump<u+2019>s daughter, ivanka. <u+2014>josh chin and eliot brown contributed to this article. write to esther fung at esther.fung@wsj.com and peter grant at peter.grant@wsj.com
trump-branded project developer in austin seeks to tap immigrant visa program - wsj
esther fung