The collapse of Silicon Valley Bank (SVB) became the largest bank closure in the United States since September 2008, triggering market concerns.
On the morning of March 13, Beijing time, before the Asian markets opened, the U.S. Treasury Department, the Federal Reserve, and the Federal Deposit Insurance Corporation (FDIC) issued a joint statement announcing action against the collapse of Silicon Valley Bank. From Monday, March 13, depositors will be able to access all their funds. Any losses related to the SVB bankruptcy will not be borne by taxpayers.
While many climate tech start-ups may have avoided a crisis as a result of the US federal rescue, one of Silicon Valley Bank's specialties - community solar projects - may still be hit by funding delays, according to new reports.
The lender is particularly known for helping community solar projects, leading or participating in development financing for 62 percent of such projects in the U.S., according to the SVB website. The bank's large footprint, and the reluctance of other firms to step in, puts the timeline for similar future projects at risk as institutions look for alternative financing.
“Other financial institutions will step in, but as these new relationships resolution, the proposed project will be put on hold for some time.”
So-called community solar programs often allow customers who cannot install their own systems to buy or lease solar panels from larger arrays. These developments, which tend to be smaller in scale than grid-scale megaprojects, allow a variety of individuals, businesses, and nonprofits to benefit from solar power.
SVB has a reputation for efficiently managing red tape for smaller renewable energy projects that big companies are reluctant to partake in because the required legal and tax work generates less profit. SVB's clients include more than 1,550 clients in climate technology and sustainable development, and has committed $3.2 billion to innovative projects in this area.