SALT LAKE CITY (ABC4) – The sixteenth largest bank in the United States collapsed Friday and was ordered to close by federal regulators. Silicon Valley Bank is the first bank since the 2008 financial crisis to close.
A number of businesses in Utah have relied on SVB and are now left scrambling for answers and solutions.
A letter to Utah senators and congress members was sent out by a number of Utah founders asking elected officials to move around policy to ensure that those who banked with SVB receive 100% percent of their funds back.
The letter also described the concerns these business owners have about the impact this closure will have on Utah businesses.
“Beyond the impact on our business operations, our employees, who have mortgages, car payments, and child car expenses are at risk of not receiving their wages. we are committed to doing everything in our power to reinstate their job security,” the letter read.
The letter was posted on social media by Nate Sanders, the CEO of Artifact, a Utah-based CX forecast software.
Both Governor Cox and Senator Romney have commented their concerns on social media expressing the importance of depositors receiving all of their funds back to make payroll or risk having to close their doors or lay off employees.
“The federal government must act immediately to assure depositors at SVB and at regional and local banks everywhere that their deposits are completely safe. The immediate and long term consequences of failure to do so could be extreme,” Romney posted on social media.