Small businesses weigh banking options amid bank turmoil
The collapse of Silicon Valley Bank and Signature Bank, and the bailout of First Republic, was a jolt for small businesses of all stripes, spurring many to scrutinize their banking services and mull whether or not they should make changes to ensure their money is safe, the Associated Press reports. The turmoil in the banking sector just added to the uncertainty already caused by stubborn inflation and higher interest rates.
Experts say it’s probably a good idea for small businesses to diversify funds and make sure they’re in close contact with their banker but emphasized that in the short term their bank accounts are safe because regulators have shown they’re willing to step in when needed. And while big banks may seem like a safer option for their savings, regional and community banks have advantages too.