PROVIDENCE, R.I. (AP) — Rhode Island’s House minority leader wants to limit the maximum amount the state economic development agency can loan or guarantee to a single entity following the 38 Studios debacle.
North Smithfield Republican Brian Newberry has introduced a bill capping at $5 million the amount the Economic Development Corp. can loan or guarantee a single company or individual.
The EDC board in 2010 approved a $75 million loan guarantee for former Boston Red Sox pitcher Curt Schilling’s video game company, which filed for bankruptcy last year.
The EDC later capped the amount that can go to one company under the loan guarantee program at $10 million.
Newberry introduced another bill limiting the EDC’s total loan authority to $1 billion. He says the current balance owed on EDC bonds is more than that.