Silicon Valley Bank's collapse took wine industry by 'surprise'

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Silicon Valley Bank catered to Napa Valley wineries and could finance 'French oak barrels' if needed. The bank's demise 'surprised everyone,' a vineyard owner says.

For the past 20-odd years, Silicon Valley Bank was a great banking partner for CADE Estate Winery, a Napa Valley-based company with four wineries, multiple vineyards, and California Gov. Gavin Newsom as one of its investors, founder John Conover told Insider.

The bank seemed to understand the unique demands and challenges of the industry, offering low-interest rate loans,"seasonal crop lines of credit" and"equipment loans and debt restructuring," according to SVB's website.after a run of $42 billion in withdrawals, tech start-up founders and VCs weren't the only cohorts shocked by SVB's demise.

Since the division's founding nearly three decades ago, SVB has loaned more than $4 billion to its wine-centric clients, according to the bank's website. It's a relatively small portion — about 5% — of a $73.6 billion loan portfolio, according to the bank's 2022 fourth-quarter earnings report

 

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