A Small Businesses’ Guide to the Silicon Valley Bank Collapse

March 15th, 2023 by Chris Collier

Silicon Valley Bank, catering to the tech industry for three decades, collapsed on March 10, 2023, after a bank run. State regulators seized the bank and made the Federal Deposit Insurance Corporation (FDIC) its receiver. According to PBS NewsHour, the bank was the biggest U.S. lender to fail since the 2008 global financial crisis—and the second-biggest ever. What steps can you take to safeguard your window film business as uncertainty looms over the banking industry?

Silicon Valley Bank collapsed on March 10, 2023.

Banking Over $250,000

The FDIC’s insurance limit is $250,000 per depositor, per insured bank, for each account ownership category, according to Forbes Advisor. The FDIC recognizes these ownership categories when protecting deposits:



Certain retirement accounts (such as an IRA);

Revocable and irrevocable trust account;

Employee benefit plan account;

Corporation, partnership or unincorporated association account; and

A government account.

Forbes Advisor cites the best ways to insure excess deposits above the FDIC limits:

1. Open New Accounts at Different Banks

The simplest way to insure excess deposits above the $250,000 FDIC limit may be spreading money around to different banks. Let’s say you have $50,000 that’s not insured at your current bank. You could deposit it into a savings or money market account at another bank and it would be insured there.”


FDIC-Certified Banks

In these times of uncertainty, it’s crucial to ensure that you’re doing business with an FDIC-insured bank.

“Deposit insurance is one of the significant benefits of having an account at an FDIC-insured bank—it’s how the FDIC protects your money in the unlikely event of a bank failure,” the government corporation states. “The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category. And you don’t have to purchase deposit insurance. If you open a deposit account in an FDIC-insured bank, you are automatically covered.”

This banking tool can help you and your business associates confirm that your bank of choice is insured: https://banks.data.fdic.gov/bankfind-suite/bankfind


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