Mark Powers Writes “10 Things I know about … Silicon Valley Bank’s failure” for the Worcester Business Journal

By mmaichle  •  March 21, 2023

On March 10, banking regulators shut down Silicon Valley Bank (SVB). The regional bank, which had billions of dollars in deposits, was well known for catering to startup clients in the technology and life science industries. The second-largest bank failure in US history, the collapse created concerns about a wider banking fallout. In his article “10 Things I know about … Silicon Valley Bank’s failure” in the Worcester Business Journal, Mark Powers discusses the causes of SVB’s failure, the treatment of customer deposits, steps businesses should take, whether the failure of SVB will be contained, and other insights. Here is an excerpt:

7) The ability to withdraw funds: In light of the FDIC’s actions, individuals with personal accounts at SVB can now withdraw all of their funds. Business customers with existing lending relationships with SVB may be required to continue to maintain their bank accounts at SVB under their loan documents. Customers should continue to make any loan payments in the ordinary course. Business customers with lines of credit should contact SVB’s bridge bank for further information on accessing their lines of credit.

6) Review insurance policies: If you are a business that was unable to access funds for the days immediately following SVB’s failure and thereby incurred any losses, review your insurance policies to see if coverage might be available, e.g. business interruption insurance.

Continue reading the full article “10 Things I know about … Silicon Valley Bank’s failure” on the Worcester Business Journal website (subscription required).