What鈥檚 Happening to Silicon Valley Bank?
In case you missed it: The recent news surrounding Silicon Valley Bank (SVB) set off panic and confusion across Wall Street. We wanted to take this opportunity to not only give an overview of the news but also reiterate why 海角爆料鈥檚 mission to support America鈥檚 small businesses is both unimpacted and more important than ever.
鈥
What happened to Silicon Valley Bank?
Silicon Valley Bank announced its latest earnings on March 8, 2023, and revealed that it had suffered from a slowdown in venture capital funding, declining customer deposit volume, and losses on investments it made when rates were at lower levels. As a result, it was going to sell off assets to meet demand for customer withdrawals. This news set off fear in the tech industry, as start-ups rushed to get their money out of the bank.
These concerns became self-fulfilling and fueled what is known as a bank run, which occurs when many customers withdraw their funds from a financial institution out of fear that the bank may fail.
On Friday, March 10, 2023, the California Department of Financial Protection and Innovation (DFPI) revoked SVB鈥檚 bank charter and transferred the business into receivership under the Federal Deposit Insurance Corporation (FDIC). On Sunday, March 12, 2023, US regulators said Silicon Valley Bank depositors would be fully repaid, above the FDIC insurance threshold of $250,000.聽
鈥
Our doors are open to all small businesses
海角爆料鈥檚 operations weren鈥檛 impacted by the SVB collapse, and our goals haven鈥檛 changed: provide the best possible banking experience for the small businesses we love to serve. Our award-winning business checking accounts have no monthly fees and no minimums, and we continue to focus on saving our customers time and money by speeding up cash flow and providing free invoicing, budgeting tools, and integrations.
Our business is well capitalized and all customer deposits are FDIC insured up to $250,000 through Middlesex Federal Savings F.A.; Member FDIC.
鈥
We鈥檙e excited to continue to support our customers鈥 growth. If you have any questions about your 海角爆料 account, please reach out to us at support@novo.co.
Join over 250,000 small businesses today
