Handful of companies in ‘serious discussions’ with EDC for loan guarantee

(Updated, 12:30 p.m.)
PROVIDENCE – Four to five companies are in “serious discussions” with the R.I. Economic Development Corporation to apply for loan guarantees under the same program that granted a $75 million guarantee to Curt Schilling’s video gaming company, 38 Studios, said spokesman Michael Blazek.

Of the dozen total applications, about half are from Rhode Island companies, Blazek noted. Four to five of the applicants are considered to be in “serious discussions,” two of which are out-of-state companies, from either Massachusetts or Connecticut.

The loan guarantee requests range from $2 million to $4 million, he added. The EDC was authorized to back up about $125 million in loans which, after the 38 Studios guarantee, leaves $50 million in possible loan guarantees.

“They’re in a wide range of industries, from life sciences to financial services to defense,” said Blazek about the applicant companies, noting that each application will be evaluated individually and the final decision is not tied to a time line.

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The EDC also plans to hold information sessions in October for companies interested in applying to the program.

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2 COMMENTS

  1. Caprio needs to stop playing politics with the Studio 38 deal. Rhode Island needs to nurture industries that can provide high paying jobs that will allow graduates to stay in R I and contribute to our economy and quality of life.

  2. Hopefully these companies can make it. but with both Reed and Whitehouse saying they are going to raise taxes on the federal level and if Chafee wins he is going to raise taxes locally, we will see how long these companies will last.