Massachusetts nonprofit charter schools and housing groups with accounts, loans or lines of credit at the failed Silicon Valley Bank scramble to take their next steps.
More than two dozen customers lined up outside Silicon Valley Bank’s Wellesley office Monday, waiting hours to withdraw their money from the failed institution after regulators pledged to make all the funds available.
The emerging picture of those exposed to the bank’s collapse is broader than its technology-sector reputation. The $209 billion bank, the second-largest to fail in U.S. history, had a much wider reach, thanks in large part to its acquisition of Boston Private Bank & Trust Co. in 2021. That deal brought in relationships with community development groups, small businesses, social service nonprofits and a long list of charter schools.
“Bank failure is seldom a solitary affliction. It tends to be a contagious thing. So I think people want to make sure they don't have any uninsured deposits anywhere.”Kevin Murray, interim executive director of the Massachusetts Association of Community Development Corporations, said his group held a virtual meeting Monday morning to talk over the concerns of its 63 members, which include nonprofits in housing and neighborhood services.
Owen Stearns, chief executive of Excel Academy Charter School, which runs four schools in East Boston, Chelsea and Rhode Island, said the group was fortunate that not all its money was locked up with Silicon Valley Bank. But it was still scary. On Monday he and his staff were working to move about $1 million to other institutions.At least a dozen charter schools in the area did business with Silicon Valley Bank, according to a spokesman for the Massachusetts Charter Public School Association.
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