How Silicon Valley Bank Affects Commercial Real Estate Financing

The FDIC appointed Deposit Insurance National Bank of Santa Clara to serve as a Bridge Bank to help customers provide some access to certain deposit accounts, and for the liquidation of SVB.

If a bank that specializes in commercial real estate such as SBV were to collapse, it would create an impact throughout commercial real estate financing.

The SBV collapses as a major lender could reduce the availability of credit and increase the cost of borrowing for commercial real estate projects.

Making it difficult for developers to secure financing for new commercial property projects, which would lead to an effect on commercial property financing.

Since the SBV collapses, there will be possible interest hikes for commercial real estate financing.

It would also lead to a decrease in demand for commercial real estate due to a slowdown in economic activity.

On the other hand, other private lenders can make an opportunity to bridge the gap left by SVB which will lead to increased competition in the commercial real estate lending market and would potentially make lower interest rates,

which could help to stimulate the demand for commercial property financing

With our 30 years of experience, Century Capital can help commercial real estate investors to bridge a gap if there’s a risk for your commercial properties, with our expertise we guarantee you to give the best possible for your commercial real estate needs.

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