Loan Guarantees: Another Gimmick That Won’t Spark Business Activity
A dozen companies – half of them out-of-state businesses looking to relocate to the Ocean State – are lining up to take advantage of the same controversial loan-guarantee program that drew Curt Schilling’s video game company, 38 Studios LLC, to Providence.
Loan guarantees by the state are no way to lure and keep business here. It is simply not feasible for the state to expose itself to the amount of risk involved in backing a sufficient number of such loans to make a difference.
The pertinent correlation, of course, is between Rhode Island’s abysmal business climate and its poor economy and corresponding employment figures. A spark to the latter will not ignite until Rhode Island’s real EDC decides to step in and address the former with substantive regulation and tax/fee reform rather than continuing to sit on the sidelines with the rest of us watching the gimmick parade.