The collapse of Silicon Valley Bank is significantly impacting MACDC's members who are working to build and preserve affordable housing to Massachusetts. As a significant player in the financial industry, the sudden downfall of Silicon Valley Bank left many organizations fighting to secure their funds deposited at the Bank and clarify the status of the active projects in which SVP was an investor. Sensing member concern about the situation, MACDC held an emergency meeting on Monday, March 13th, to discuss how the downfall of Silicon Valley Bank impacts our field, and we should respond as an Association.
In addition to sharing vital information about appropriate responses by CDCs, participants in the emergency meeting decided that MACDC and its members should endeavor to bring public attention to the potential impact of the bank closure on affordable housing and other community development activities. During the next 72 hours, MACDC, in collaboration with several member CDCs, messaged intensively to local media contacts, resulting in over a dozen articles and reports highlighting the community development challenges associated with SVB's demise.
The loss of vital loans and financial resources that these nonprofit organizations depend on to support affordable housing projects, infrastructure improvements, and community revitalization efforts is an immediate cause of the closure of SVB. These projects directly contribute to local communities' economic growth and stability.
SVB has played a vital role in funding affordable housing projects in our region; according to the Boston Globe, SVB has loaned over $2.7 billion and made investments worth $1.3 billion in new construction or rehabilitation projects. The federal government assured depositors that their funds held at SVB would be accessible even after the bank's collapse; however, the repercussions of the fall of SVB for affordable housing development in Massachusetts continues to be a matter of concern.
Over the weekend, when the news about SVB broke, MACDC's Interim Executive Director, Kevin Murray, stayed engaged with members to discuss the outcomes and reassure them that MACDC is aware of the situation and will be working with them to find a solution to the loss of this development finance partner. In addition to the contact made over the weekend, one-on-one meetings were held with our members to provide support and help ensure members were aware of the situation and how it would impact our field.
MACDC will continue to monitor the situation, support our members as needed, and advocate for a public disposition of SVB that minimizes the impact on the families and communities served by our member organizations.