The collapse of Silicon Valley Bank and Signature Bank earlier this month was a jolt for most small businesses, spurring many to scrutinize their banking services and consider changes to ensure their money is safe.
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 their funds and maintain close contact with their bankers.
A review of finances and shoring up relationships with bankers is key now because the banking turmoil could tip the economy into a recession and a tighter credit market, said one chief economist at the U.S. Chamber of Commerce. Read more.