RESEARCH TRIANGLE PARK – Silicon Valley Bank, once a primary source of funding for startups and loans to the venture capital industry, is making loans again in that sector following its acquisition by Raleigh-based First Citizens Bank.

That’s according to the Wall Street Journal in its WSJ “Pro” coverage.

However, it’s doing so “less aggressively than in the past,” says writer Yuliya Chernova. SVB’s moves are ‘contributing to a sharply decelerating venture-debt market, which means there are fewer sources of financing at the very time more startups are struggling,” the report says.
In an WSJ newsletter, SVB’s pace of lending is not good for the startup and venture sector.
“The economy and the fundraising environment are headwinds on loan origination,” said Marc Cadieux, a 30-year-veteran of SVB who was named president of its commercial banking division in June. “Fewer companies are able to clear that key underwriting bar—do you still have the support of venture investors behind you,” he said.

Read more online (subscription required):

https://www.wsj.com/articles/silicon-valley-bank-gets-back-to-lending-albeit-at-slower-pace-88e65b28

First Citizens acquired SVB in March after it had been seized by federal regulators.

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