The collapse of Silicon Valley Bank (SVB) is generating questions about the viability of the clean energy companies it financed, as the bank had long been a favorite of renewable startups because of its understanding of the clean-tech marketplace and cleantech-focused financing tools.
As of a year ago, the bank claimed to have sponsored 62 percent of community solar projects in the United States, and several significant businesses are still looking for new credit lines as a result of the bank’s demise. Yet, many businesses claim they were spared because they had limited exposure to SVB or felt secure because the federal government had pledged to make them whole.
President Biden sought to reassure investors by stating in a statement that small businesses across the country with deposit accounts in these banks can breathe easier knowing they can pay their employees and pay their bills. The Federal Reserve is funding other banks to prevent a series of bank failures. Also, their dedicated staff members may exhale more easily.
However, CEO Kiran Bhatraju of Arcadia, the biggest domestic community solar producer, told Utility Dive that the collapse of the bank will have an effect on the industry as a whole.