How Silicon Valley Bank’s collapse is hurting local businesses
CLEVELAND, Ohio (WOIO) - California based Silicon Valley Bank’s (SVB) historic collapse on Friday created disaster for many companies who use the 14th largest US bank, including some businesses based in Northeast Ohio.
River SaaS Capital says that a few of their portfolio companies have money in Silicon Valley Bank, which made for a very tough few days. According to CIO Wendy Jarchow, River SaaS Capital worked to make sure the companies had the cash they needed to pay employees and conduct their business as usual.
Jarchow says businesses navigating through this have been “made whole” since Friday, however the full fallout with Venture Capital firms from SVB. Options for many of these banks included opening a new bank account to make sure they felt secure.
SVB’s fallout being felt in Northeast Ohio shows just how widespread this failure can be. Jarchow believes the big picture on this failure may be a sign of things to come, with chances to make big changes:
“It does look like we’re heading (to a recession), but also it’s a chance to make things right and to change the system and ensure companies are safe,” Jarchow said, “the economy can operate, and investors can still make wise investments.”
As for the everyday consumer, this collapse shouldn’t lead you to pull your money out of your bank if there is less than $250,000 in the account. Experts also suggest making sure your bank is insured with the FDIC.
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