SAN FRANCISCO (KCBS RADIO) – The demise of Silicon Valley Bank has sent shockwaves through the wine industry.
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The collapse has left some lingering uncertainty for many North Bay wine companies.
While the bank served many clients in the tech and the tech financial industry, it also had around 400 clients in the Bay Area wine industry.
The most immediate impact of the bank's failure on these wine operations was the same as they would be for other clients – a concern that payroll wouldn't be met or bills would go unpaid.
Those businesses will still face disruptions in paying with checks.
"Other banks putting holds on those of multiple days," said Ray Johnson, the executive director of the Wine Business Institute at Sonoma State University.
"That hurts the little guy, who's bringing in their payroll check and just wants to deposit that," he said.
There has been some relief to the situation provided by the federal backstop.
"That has actually brought a lot of calm and reassurance to people," said Johnson. "Nonetheless, these annoyances continue."
Silicon Valley Bank released an influential industry report annually. According to Johnson, other organizations are already looking to pick up the slack.
"There's quite an array of really great reporting and presentations that are put out by other organizations as well," he said. "So there won't be a vacuum of good reporting and good analysis."
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