Loans | Bill Would Hinder RIEDC From Guaranteeing Loans

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PROVIDENCE, R.I. (AP) -- A bill introduced in the Rhode Island House would hinder the state's mercantile growth group from guaranteeing loans similar to the a to Curt Schlling 's now-defunct video diversion firm .

Under Rep. Joseph Shekarchi 's bill, the Economic Development Corp. would not be able to pledge any loans and obligations. The Warwick Democrat says it would give larger financial insurance is to state and its taxpayers.

The EDC house granted a $75 million loan pledge for Schilling's startup, 38 Studios, in 2010. The firm after that went bankrupt, and the state is expected on the offshoot for a few $100 million connected to the deal.

Shekarchi says the bill isn't only about the one-time Red Sox pitcher's company, even though the state schooled a trying lesson.

The bill has been referred to the Finance Committee.

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