Congressman Khanna voted to protect depositors Sunday at a meeting with Bay Area leaders impacted by SVB's short-lived collapse.
Among those organizations was Sunnyvale Community Services, a safety net for thousands of low-income families. Part of its services include providing fresh groceries to over a thousand such families each week. One out of 11 people they serve are unhoused. Sign up for NBC Bay Area’s Housing Deconstructed newsletter.“The fiasco of all the - the fact the bank was closed down and acquired and is under the management of the FDIC right now, is very scary,” she said.
The organization took out a mortgage in 2019 to buy a larger office and more warehouse space. They put their million dollar loan in Boston Private. But in 2021, SVB acquired that bank. And with it: Sunnyvale Community Services’ mortgage. Bernard said that until the non-profit can raise the funds needed to pay off the mortgage, that million dollars is trapped at SVB. And without it, they’re struggling to pay their bills.
“That’s what happens to our families,” said Bernard. “An emergency comes in, their card doesn’t work, they have a medical bill and this was like that catastrophe happening to us. Thank god, and thanks to the federal government.” Khanna is currently drafting legislation that would require banks to pay an insurance premium, a measure that could protect banks and depositors in the future.
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