38 Studios to Secure Another $75 Mlllion?

Last month, I mentioned that 38 Studios had reached its goal of raising $100 million from investors for the development of Project Copernicus and Project Mercury. Now comes word via The Boston Globe that the company might be awarded up to $75 million in loan guarantees above and beyond that if they’re willing to relocate to Rhode Island.

On Thursday, 38 Studios, which is based in Maynard, will meet with the Rhode Island Economic Development Corporation to discuss up to $75 million in loan guarantees in exchange for moving the company to that state. For months, Schilling has urged Massachusetts to offer tax breaks to video game developers, saying he would prefer to remain in Massachusetts, but that he’d be willing to move 38 Studios to another state that would offer financial incentives. Yesterday, a 38 Studios spokeswoman said the company would not comment on its discussions with Rhode Island prior to the meeting.

Massachusetts officials said they don’t have a program to offer the same guarantees as Rhode Island, but are not done talking to 38 Studios. (We have been proactive in working with them and asking them what their needs are, as far as staying here and growing here in the state,” said Kofi Jones, spokeswoman for the state’s secretary of housing and economic development, Gregory Bialecki. (We remain open to working with them.”

The Rhode Island Legislature enacted a program last month that provides $125 million in loan guarantees for high-tech companies. Commercial banks would serve as the lenders, but the state would guarantee repayment, making it easier for small technology companies to obtain such loans. The Rhode Island program is designed to create about 400 jobs in that state.

If this deal goes through, that means that 38 Studios will have access to more than enough money to see Copernicus and Mercury through to release – and well beyond. Good news for both RPG and MMORPG enthusiasts, anyway.