The Rhode Island Economic Development Corporation’s (EDC) adjustment of a loan used to lure Curt Schilling’s 38 Studios from Massachusetts to Rhode Island did little to throttle hostility towards the deal from a pair of gubernatorial candidates.
Under new terms, about $20 million of the $75 million dollar loan will be held aside in escrow in case it’s needed to pay for three years of repayments on the loan. 38 Studios will end up with about $51 million under the new stipulations.
Democratic candidate for governor Frank Caprio said that the loan deal has now gone from “bad to worse,” indicating to the Providence Journal that the setting aside of money for repayments only highlights the risk of the whole transaction.
Independent gubernatorial candidate Lincoln Chafee agreed, saying that the reserve is a warning sign that 38 Studios would not be able to repay the loan.
EDC spokesperson Melissa Chambers seemed to have heard just about enough criticism of the deal, saying, “We've moved forward at the EDC on track with this transaction through all the noise.”