State and local officials on Sunday said they are working to support Massachusetts businesses and employees affected by last week’s historic collapse of Silicon Valley Bank, one of the largest and most influential bankers to the Boston-area startup community.
The California-based financial institution, which has offices in Boston and Newton, as well as former Boston Private Bank & Trust branches following its acquisition of that bank in 2021, was taken over by the Federal Deposit Insurance Corporation on Friday, and all of its accounts were frozen, leaving many companies unable to withdraw funds.
In a joint statement on Sunday, the US Treasury Department, Federal Reserve, and FDIC said all SVB clients will have access to their funds beginning Monday and announced steps to protect the bank’s customers and prevent further bank runs.
Advertisement
Meanwhile, Massachusetts Governor Maura Healey said Sunday that she has “spoken with federal regulators and the White House, and they understand the impact of the situation on Massachusetts.”
“Our administration is actively working to support individuals and businesses affected by SVB’s closure and to find solutions to help them address immediate needs, including putting supports in place to ensure that small businesses and employees do not experience significant disruptions,” Healey said in a statement.
“We will continue to be in dialogue with decision-makers and support all efforts to preserve the strength and stability of our markets and protect jobs, businesses, non-profits and our economy. We have confidence in the strength of our regional banks and banking operations.”
State Economic Development Secretary Yvonne Hao said her office has been working through the weekend to analyze the impact of SVB’s closure on Massachusetts companies.
Hao said the state “may be uniquely impacted by this situation due to our strong technology, innovation, and life sciences sectors and because SVB had a broad client base here, including non-profits, individuals and others.”
Advertisement
“We are confident in the FDIC’s process in resolving bank closures and in the Massachusetts banking sector,” Hao said in the statement from Healey’s office. “The Healey-Driscoll Administration is working across secretariats to develop creative solutions to help businesses and individuals meet their needs and fill gaps where necessary.”
Boston Mayor Michelle Wu said businesses, entrepreneurs, nonprofits, and workers “will not be left to fend for themselves.”
To Boston’s innovators, entrepreneurs & residents affected by Silicon Valley Bank—we’re monitoring & in close touch with federal & state partners to advocate for our local community. To share your info & experiences so we can keep you updated: https://t.co/tNgyXCLf44
— Mayor Michelle Wu 吳弭 (@MayorWu) March 12, 2023
“In partnership with the Commonwealth, our immediate focus is helping our businesses make payroll and provide for their employees,” Wu said in a statement. “We appreciate the local banks stepping up quickly to serve these companies and support their workers.”
Material from the Associated Press and previous Globe stories was used in this report.
Nick Stoico can be reached at nick.stoico@globe.com. Follow him on Twitter @NickStoico.