On March 13th, 2023, the Boston Globe reported that small businesses, local organizations, and startups rushed to free their respective deposits at Silicon Valley Bank (SVB), a failed California financial institution, after its abrupt closure. According to the Globe, “business leaders across technology, life sciences, housing, and education opened new accounts, scrambled to move funds, and investigated whether their loans would be affected” by the closing of SVB. Leslie Reid, Madison Park Development Corporation’s acting CEO, shared that this has also severely impacted the construction of MPDC’s income-restricted housing project, 2085 Washington St., and it may be delayed due to this unforeseen obstacle. “We’re in the unenviable situation of having to seek another investor, and maybe receiving less favorable terms,” Reid explained. “We’re in the middle of a housing crisis and we’re trying to push housing production… it just puts more pressure on the system and slows us down at the precise moment when we should be speeding up.”
In the Boston Globe: Boston’s tech, life science, and nonprofit communities hail SVB rescue, but worries persist
