Silicon Valley Bank Fills Small Business Lending Gap
SANTA CLARA— June 14, 2010 — Silicon Valley Bank (SVB), financial partner to technology and life science companies, premium wineries and venture capitalists worldwide remains committed to small business at a time when many lenders have cut back on their lending to emerging businesses. Throughout the downturn, SVB has continued to support its current and prospective clients through lending and a comprehensive array of financial and business services. In 2009, SVB added 1000 new clients, 400 of them borrowers. The company grew its pipeline of new potential borrowers by 25 percent in the first quarter of 2010 to its highest level since 2008. SVB banks more than half of all venture-capital backed companies in the U.S. and has provided much-needed capital to technology and life science startups for nearly 30 years.
Addressing an audience at the Federal Reserve Bank of Chicago's branch earlier this month, Federal Reserve Chairman Ben Bernanke called on lenders to "do all they can to meet the needs of legitimate, creditworthy borrowers," calling small-business lending "a positive, not a negative, for the safety and soundness of our banking system."
"We support Chairman Bernanke's notion that increasing the flow of capital to small companies is central to our overall economic recovery," said Ken Wilcox, president and CEO of SVB Financial Group and Silicon Valley Bank. "To that end, we've made it our mission in the last few years to maintain a strong position that would allow us to continue lending and supporting small business growth and economic recovery."
In 2009, SVB created the "SVB Accelerator" program designed specifically to accelerate the success of pre-revenue and early-stage businesses by providing tools and resources, financing, educational and networking events, thought leadership, and introductions to potential angel or venture investors.
In a Silicon Valley Bank study of its startup clients in the first quarter of 2010, 74% said they expected to create new jobs in 2010.
Since 1983, SVB Financial Group, the parent company of Silicon Valley Bank, has worked with venture capitalists to help thousands of technology and life science startup companies grow into large, productive businesses, creating jobs and innovative products and services that are used and sold worldwide. Today, SVB banks more than 500 venture capital funds in addition to venture-capital backed companies in the U.S., as well as a growing number of larger and public companies. SVB also works with companies in several overseas markets and oversees $1.5 billion in venture-related funds that support startup companies and entrepreneurs.
About Silicon Valley Bank
Silicon Valley Bank is the premier commercial bank for companies in the technology, life science, venture capital, private equity and premium wine industries. SVB provides a comprehensive suite of financing solutions, treasury management, corporate investment and international banking services to its clients worldwide. Through its focus on specialized markets and extensive knowledge of the people and business issues driving them, Silicon Valley Bank provides a level of service and partnership that measurably impacts its clients' success. Founded in 1983 and headquartered in Santa Clara, Calif., the company serves clients around the world through 26 U.S. offices and five international operations. Silicon Valley Bank is a member of global financial services firm SVB Financial Group (Nasdaq: SIVB), along with SVB Analytics, SVB Capital, SVB Global and SVB Private Client Services.
More information on Silicon Valley Bank can be found at www.svb.com.
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Silicon Valley Bank is the California bank subsidiary and commercial banking operation of SVB Financial Group. Banking services are provided by Silicon Valley Bank, a member of the FDIC and the Federal Reserve System. SVB Financial Group is also a member of the Federal Reserve System.
Contact:
Jane Lodato
(650) 855-3078
jlodato@svb.com