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"content": "\u003cp>As part of a \u003ca href=\"https://www.svb.com/news/company-news/svb-financial-group-completes-acquisition-of-boston-private2\">merger two years ago\u003c/a>, Silicon Valley Bank entered into a \u003ca href=\"https://calreinvest.org/wp-content/uploads/2021/05/Community-Benefits-Plan-SVB-CRC-GLI.pdf\">community benefits agreement (PDF)\u003c/a>, committing to spending more than \u003ca href=\"https://www.svb.com/news/company-news/svb-financial-group-announces-%24112.2-billion-community-benefits-plan\">$11 billion over five years\u003c/a> on things like \u003ca href=\"https://www.kqed.org/news/11943688/map-bay-area-affordable-housing-projects-impacted-by-silicon-valley-banks-collapse\">affordable housing\u003c/a> and small-business loans in the Bay Area and Los Angeles.\u003c/p>\n\u003cp>But nearly two weeks after \u003ca href=\"https://www.nytimes.com/2023/03/10/business/silicon-valley-bank-stock.html\">SVB’s collapse\u003c/a>, the Federal Deposit Insurance Corporation has struggled to find a buyer for the bank, and has now \u003ca href=\"https://www.reuters.com/business/finance/fdic-extends-bidding-window-svb-seeks-separate-sale-private-unit-2023-03-20/\">broken it up into two separate units\u003c/a>, setting Friday as the \u003ca href=\"https://www.bloomberg.com/news/articles/2023-03-22/fdic-said-to-delay-bid-deadline-for-silicon-valley-private-bank?sref=y3YMCJ4e\">second bidding deadline\u003c/a>.\u003c/p>\n\u003cp>Given all that, it remains unclear whether federal regulators will require prospective buyers to honor the community benefits agreement.\u003c/p>\n\u003cp>“It’s a real economic driver, and a real concern when you lose that,” said Paulina Gonzalez-Brito, CEO of the California Reinvestment Coalition (CRC), which negotiated the agreement.\u003c/p>\n\u003cp>[aside label=\"related coverage\" tag=\"silicon-valley-bank\"]“We’ve seen the regulators step in to provide real support for depositors, and we agree that was an important step … and so we’re glad that the depositors are going to be protected,” Gonzalez-Brito added. But, she said, “we hope that there’s going to be just as much attention from the regulators to protect” the agreement.\u003c/p>\n\u003cp>Gonzalez-Brito said she’s heard that private equity and hedge fund managers are interested in buying the bank, which she said may not bode well for the future of the agreement.\u003c/p>\n\u003cp>“If a purchaser is not committed to community reinvestment, I think it becomes really difficult to have them assume responsibility for this commitment, and to successfully implement it,” she said.\u003c/p>\n\u003cp>The CRC, which advocates for lower-income communities and communities of color, consists of 300 members across the state, including affordable housing developers, community development financial institutions and nonprofit legal service agencies.\u003c/p>\n\u003cp>A \u003ca href=\"https://www.dailykos.com/campaigns/petitions/sign-the-petition-save-affordable-housing-keep-the-promises-silicon-valley-bank-made\">petition\u003c/a> started by the group is urging the FDIC to require any buyers to uphold SVB’s affordable housing commitments.\u003c/p>\n\u003cp>“I think it’s a fair assessment to say that the bank was doing a good job, and maybe a better job than other banks, in providing support to affordable housing, to communities of color, to low-income communities, both small-business support as well as housing support,” Gonzalez-Brito said.\u003c/p>\n\u003cp>Ari Beliak, who heads \u003ca href=\"https://merrittcap.org/about-us/\">Merritt Community Capital\u003c/a>, a nonprofit affordable-housing funder that worked closely with SVB, said many of the bank’s staff who work in affordable housing financing are still there — at what’s known as a “\u003ca href=\"https://www.svb.com/about-us/bridge-bank-hub\">bridge bank\u003c/a>” — and say for now, at least, “they’ve been told that they should act as business as usual.”\u003c/p>\n\u003cp>“Silicon Valley Bank has been an investor with Merritt for 15 years. They really increased dramatically the amount of their investment after they signed the community benefits agreement,” he said.\u003c/p>\n\u003cp>The big national banks or investors expected to take over SVB’s assets “look at the macro and not the micro, and the micro is where the people are,” Beliak added.\u003c/p>\n\u003cp>“I don’t know who’s going to step up when Silicon Valley Bank walks away,” he said. “Without them, we don’t know who’s going to step into that void, if anyone’s going to step in.”\u003cbr>\n[ad fullwidth]\u003c/p>\n\u003cp>\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>“We’ve seen the regulators step in to provide real support for depositors, and we agree that was an important step … and so we’re glad that the depositors are going to be protected,” Gonzalez-Brito added. But, she said, “we hope that there’s going to be just as much attention from the regulators to protect” the agreement.\u003c/p>\n\u003cp>Gonzalez-Brito said she’s heard that private equity and hedge fund managers are interested in buying the bank, which she said may not bode well for the future of the agreement.\u003c/p>\n\u003cp>“If a purchaser is not committed to community reinvestment, I think it becomes really difficult to have them assume responsibility for this commitment, and to successfully implement it,” she said.\u003c/p>\n\u003cp>The CRC, which advocates for lower-income communities and communities of color, consists of 300 members across the state, including affordable housing developers, community development financial institutions and nonprofit legal service agencies.\u003c/p>\n\u003cp>A \u003ca href=\"https://www.dailykos.com/campaigns/petitions/sign-the-petition-save-affordable-housing-keep-the-promises-silicon-valley-bank-made\">petition\u003c/a> started by the group is urging the FDIC to require any buyers to uphold SVB’s affordable housing commitments.\u003c/p>\n\u003cp>“I think it’s a fair assessment to say that the bank was doing a good job, and maybe a better job than other banks, in providing support to affordable housing, to communities of color, to low-income communities, both small-business support as well as housing support,” Gonzalez-Brito said.\u003c/p>\n\u003cp>Ari Beliak, who heads \u003ca href=\"https://merrittcap.org/about-us/\">Merritt Community Capital\u003c/a>, a nonprofit affordable-housing funder that worked closely with SVB, said many of the bank’s staff who work in affordable housing financing are still there — at what’s known as a “\u003ca href=\"https://www.svb.com/about-us/bridge-bank-hub\">bridge bank\u003c/a>” — and say for now, at least, “they’ve been told that they should act as business as usual.”\u003c/p>\n\u003cp>“Silicon Valley Bank has been an investor with Merritt for 15 years. They really increased dramatically the amount of their investment after they signed the community benefits agreement,” he said.\u003c/p>\n\u003cp>The big national banks or investors expected to take over SVB’s assets “look at the macro and not the micro, and the micro is where the people are,” Beliak added.\u003c/p>\n\u003cp>“I don’t know who’s going to step up when Silicon Valley Bank walks away,” he said. “Without them, we don’t know who’s going to step into that void, if anyone’s going to step in.”\u003cbr>\n\u003c/p>\u003c/div>",
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"content": "\u003cp>After a California appeals court \u003ca href=\"https://www.politico.com/news/2023/03/13/california-court-lets-gig-companies-keep-treating-workers-as-contractors-00086898\">upheld most of Proposition 22\u003c/a> last week, it’s widely expected the Service Employees International Union (SEIU) will appeal to the state Supreme Court. That’s even though the union says it’s still considering its options.\u003c/p>\n\u003cp>[aside label=\"More California Coverage\" tag=\"california\"]\u003c/p>\n\u003cp>Tia Orr, executive director of SEIU California, wrote in an email to KQED, “Drivers have always led this movement, and we will follow their lead as we consider all options — whether that’s seeking review from the California Supreme Court — to ensure that rideshare drivers and delivery workers have access to the same rights and protections afforded to other workers in California.”\u003c/p>\n\u003cp>\u003ca href=\"https://vig.cdn.sos.ca.gov/2020/general/pdf/topl-prop22.pdf\">Prop. 22 (PDF)\u003c/a> is widely perceived as a major carve-out of California labor law, allowing Uber, Lyft and similar businesses to classify their drivers as independent contractors, rather than employees. A lower court ruling \u003ca href=\"https://www.marketwatch.com/story/judge-shoots-down-landmark-law-that-kept-uber-and-lyft-drivers-from-being-employees-11629513964\">found the law unconstitutional\u003c/a>. But the \u003ca href=\"https://www.courts.ca.gov/opinions/documents/A163655.PDF\">two-judge majority on the state appeals panel disagreed (PDF)\u003c/a>, arguing state law has never provided generous labor protections to “all potentially eligible wage workers” in California. There are, for instance, \u003ca href=\"https://www.kqed.org/news/11939848/a-legacy-of-slavery-for-domestic-workers-californias-new-safety-guidelines-are-long-overdue-say-advocates\">long-standing carve-outs for domestic and agricultural workers\u003c/a>.\u003c/p>\n\u003ch2>Rideshare industry reaction exultant\u003c/h2>\n\u003cp>In a statement following the release of the decision, \u003ca href=\"https://www.lyft.com/blog/posts/lyft-statement-on-california-court-of-appeal-prop-22-decision\">Lyft officials wrote in a blog post\u003c/a>, “We are pleased that the court upheld the democratic will of the voters … We are excited to continue operating our service with no changes.”\u003c/p>\n\u003cfigure id=\"attachment_11944379\" class=\"wp-caption aligncenter\" style=\"max-width: 2560px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11944379\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2023/03/RS16535_IMG_0443.JPG-scaled.jpg\" alt=\"A closeup shot of a black vehicle with a pink Lyft sticker and a black and white Uber sticker on the left side of its windshield. The vehicle sits idle waiting to pick up a customer.\" width=\"2560\" height=\"1707\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS16535_IMG_0443.JPG-scaled.jpg 2560w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS16535_IMG_0443.JPG-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS16535_IMG_0443.JPG-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS16535_IMG_0443.JPG-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS16535_IMG_0443.JPG-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS16535_IMG_0443.JPG-2048x1365.jpg 2048w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS16535_IMG_0443.JPG-1920x1280.jpg 1920w\" sizes=\"(max-width: 2560px) 100vw, 2560px\">\u003cfigcaption class=\"wp-caption-text\">Proposition 22 allows gig companies such as Uber and Lyft to classify their drivers as independent contractors, rather than employees. \u003ccite>(Ericka Cruz Guevarra/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Uber’s chief legal officer, Tony West, wrote in an email to KQED, “Across the state, drivers and couriers have said they are happy with Prop 22, which affords them new benefits while preserving the unique flexibility of app-based work.”\u003c/p>\n\u003cp>The 1st District Court of Appeal in San Francisco did invalidate Prop. 22’s most \u003ca href=\"https://calmatters.org/politics/post-it/2020/10/california-amendment-threshold-proposition-22/\">controversial provision\u003c/a>, one that required a close-to-impossible seven-eighths’ vote of the Legislature to pass any bills that modify Prop. 22. But experts don’t expect Uber or Lyft to appeal, lest they risk the possibility the California Supreme Court agrees with the lower court ruling, and/or strike down all of Prop. 22.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Stanford labor law professor William Gould, who served as chair of the National Labor Relations Board from 1994 to 1998, wrote in an email to KQED that he thinks it’s “more than likely that the California Supreme Court will reverse. Should it not do so, the Biden administration’s new wage and hour rule on who is an employee preempts state law and, if drawn inconsistently with Proposition 22, will trump it constitutionally.”\u003c/p>\n\u003cp>In a separate but related decision, a unanimous 9th Circuit panel \u003ca href=\"https://www.reuters.com/legal/ubers-challenge-calif-contractor-law-revived-by-us-appeals-court-2023-03-17/\">reinstated Uber and Postmates’ constitutional claim\u003c/a> against California’s \u003ca href=\"https://www.kqed.org/news/tag/ab5\">Assembly Bill 5\u003c/a> on Friday. The San Francisco-based appeals panel said the state must face claims that the law is unconstitutional because it singles out app-based transportation businesses while exempting many other industries from the need to justify why they classify some workers as contractors rather than employees.[aside label=\"More on Assembly Bill 5\" tag=\"ab5\"]Already, the success of Prop. 22 with California voters at the ballot box in 2020 has inspired a similar measure on the 2024 ballot, one that would \u003ca href=\"https://elections.cdn.sos.ca.gov/ccrov/2023/january/23012jh.pdf\">overturn a new law (PDF)\u003c/a> designed to \u003ca href=\"https://calmatters.org/california-divide/ca-divide-workplace/2022/08/fast-food-workers/\">improve wages and working conditions in fast food\u003c/a>.\u003c/p>\n\u003cp>“No question there are a lot of minimum labor law standards in California, and I understand why employers find them onerous to comply with, not to mention expensive,” said UC Berkeley law professor Catherine Fisk, who wrote a friend-of-the-court brief on behalf of a group of California labor and employment law professors opposed to Prop. 22. She added that she’s “disappointed” by the appeals court decision.\u003c/p>\n\u003cp>“I don’t think it’s really in the public’s best interest to have such a large group of workers who are carved out of the minimum protections of state law. That exists not only to benefit the workers and their families, but the communities that are affected by abject poverty,” she said.\u003c/p>\n\u003ch2>Happy to be independent, unhappy about the pay\u003c/h2>\n\u003cp>“Scott from LA County,” who drives for Uber, says he didn’t even vote in 2020 when the measure was on the ballot. KQED is not sharing Scott’s last name because because he fears the company might retaliate against him for speaking to KQED; he is unaffiliated with either the SEIU or the industry-backed \u003ca href=\"https://protectdriversandservices.com/about/our-coalition/\">Protect App-Based Drivers and Services coalition\u003c/a> (PADS).\u003c/p>\n\u003cp>“I was a little nonchalant about Prop. 22 because I was just getting started, and things were surprisingly good back then,” he said.\u003c/p>\n\u003cp>Scott admitted his opinion changed after Prop. 22 took effect the following January, and he watched the measure’s promised 120% of minimum wage become a ceiling for him, rather than a floor. In other words, he makes about $18.60 an hour these days.\u003c/p>\n\u003cfigure id=\"attachment_11944396\" class=\"wp-caption aligncenter\" style=\"max-width: 2560px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11944396\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2023/03/RS52363_004_SanFrancisco_GigWorkerProtest_11032021-scaled.jpg\" alt='A man stands with his back to the camera wearing a black T-shirt with yellow writing that reads \"Drivers Union Now.\" In the background, two people hold a large white sign that reads, \"Gig Workers Are Essential.\"' width=\"2560\" height=\"1707\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS52363_004_SanFrancisco_GigWorkerProtest_11032021-scaled.jpg 2560w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS52363_004_SanFrancisco_GigWorkerProtest_11032021-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS52363_004_SanFrancisco_GigWorkerProtest_11032021-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS52363_004_SanFrancisco_GigWorkerProtest_11032021-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS52363_004_SanFrancisco_GigWorkerProtest_11032021-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS52363_004_SanFrancisco_GigWorkerProtest_11032021-2048x1365.jpg 2048w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS52363_004_SanFrancisco_GigWorkerProtest_11032021-1920x1280.jpg 1920w\" sizes=\"(max-width: 2560px) 100vw, 2560px\">\u003cfigcaption class=\"wp-caption-text\">Gig workers, including rideshare and delivery drivers, with We Drive Progress and Gig Workers Rising demonstrate outside DoorDash headquarters in San Francisco on Nov. 3, 2021, demanding fair pay and employee rights. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“But that’s not what independent contractors got into Uber for, to make 120% of minimum wage,” he said. “In the past, I was making $30, $40, $50 an hour.”[pullquote size=\"medium\" align=\"right\" citation=\"Scott, rideshare driver\"]‘There’s no reward for loyalty. You just kind of always feel like you’re replaceable.’[/pullquote]That said, Scott still loves choosing his own hours, 20 to 25 a week, and he’s not really bothered by the fact that independent contractors, as defined by Prop. 22, don’t have the same protections as employees under California law.\u003c/p>\n\u003cp>He said what bothers him most, aside from making less money, is his sense that the company is driving out gig workers like him — who remember the days before Prop. 22 and can see the work is becoming less profitable — and relying on high turnover to pull in new people who can’t remember when drivers made more.\u003c/p>\n\u003cp>“There’s no reward for loyalty. You just kind of always feel like you’re replaceable,” Scott said.\u003c/p>\n\u003ch2>Side hustle or livelihood?\u003c/h2>\n\u003cp>The percentage of rideshare drivers who are full time versus part time has been a point of contention between union-friendly Democratic lawmakers in California and the rideshare companies. A report published last year by UC Riverside’s Center for Economic Forecasting and Development for the industry-backed drivers’ coalition found “\u003ca href=\"https://protectdriversandservices.com/wp-content/uploads/2022/03/UCR_CEFD_CA_AppDrivers_Analysis_2_17_2022-41.pdf\">only 23% of drivers report working with platforms on what would conventionally be considered a full-time basis\u003c/a>.”\u003c/p>\n\u003cfigure id=\"attachment_11944401\" class=\"wp-caption aligncenter\" style=\"max-width: 2560px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11944401\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2023/03/RS52369_011_SanFrancisco_GigWorkerProtest_11032021-scaled.jpg\" alt=\"\" width=\"2560\" height=\"1704\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS52369_011_SanFrancisco_GigWorkerProtest_11032021-scaled.jpg 2560w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS52369_011_SanFrancisco_GigWorkerProtest_11032021-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS52369_011_SanFrancisco_GigWorkerProtest_11032021-1020x679.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS52369_011_SanFrancisco_GigWorkerProtest_11032021-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS52369_011_SanFrancisco_GigWorkerProtest_11032021-1536x1022.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS52369_011_SanFrancisco_GigWorkerProtest_11032021-2048x1363.jpg 2048w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS52369_011_SanFrancisco_GigWorkerProtest_11032021-1920x1278.jpg 1920w\" sizes=\"(max-width: 2560px) 100vw, 2560px\">\u003cfigcaption class=\"wp-caption-text\">A demonstrator holds a sign that says ‘Prop 22 Is Unconstitutional’ during a protest outside DoorDash headquarters in San Francisco on Nov. 3, 2021. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>In a recent talk before The Economic Club of Chicago, \u003ca href=\"https://www.youtube.com/watch?t=2131&v=HFKrv9Ub9WI&feature=youtu.be\">Uber CEO Dara Khosrowshahi said the weakening economy is bringing more drivers — he calls them “earners” — online\u003c/a>.\u003c/p>\n\u003cp>“About 70% of our earners are saying inflation is actually one of the reasons why they’re coming on to the platform, because they can earn flexibly. And they can, you know, earn another $500 a week for groceries or whatever else they need to live,” Khosrowshahi said.\u003c/p>\n\u003cp>If drivers are only making a little extra money with the platforms versus relying on the driving for their livelihoods, labor lawyers say, it’s easier for gig companies to argue they aren’t exploiting the drivers by refusing to provide them the benefits employees would receive — or exploiting taxpayers by socializing the costs drivers can’t afford to cover on their own.\u003c/p>\n\u003cp>“We saw this during the pandemic, right after Proposition 22 was enacted,” said Fisk, of UC Berkeley. “Every other employer had paid into the unemployment system. So when their workers became unemployed, they could file a claim for unemployment and be compensated. Uber and Lyft exempted themselves from the unemployment system. Their drivers were left penniless. So what did the companies say? ‘Congress has created a system for independent contractors. You should apply to that.’ Who was paying for that? \u003ca href=\"https://www.kqed.org/news/11812496/uber-and-lyft-arent-paying-for-drivers-unemployment-you-are-confirms-newsom\">The taxpayers\u003c/a>.”\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Tia Orr, executive director of SEIU California, wrote in an email to KQED, “Drivers have always led this movement, and we will follow their lead as we consider all options — whether that’s seeking review from the California Supreme Court — to ensure that rideshare drivers and delivery workers have access to the same rights and protections afforded to other workers in California.”\u003c/p>\n\u003cp>\u003ca href=\"https://vig.cdn.sos.ca.gov/2020/general/pdf/topl-prop22.pdf\">Prop. 22 (PDF)\u003c/a> is widely perceived as a major carve-out of California labor law, allowing Uber, Lyft and similar businesses to classify their drivers as independent contractors, rather than employees. A lower court ruling \u003ca href=\"https://www.marketwatch.com/story/judge-shoots-down-landmark-law-that-kept-uber-and-lyft-drivers-from-being-employees-11629513964\">found the law unconstitutional\u003c/a>. But the \u003ca href=\"https://www.courts.ca.gov/opinions/documents/A163655.PDF\">two-judge majority on the state appeals panel disagreed (PDF)\u003c/a>, arguing state law has never provided generous labor protections to “all potentially eligible wage workers” in California. There are, for instance, \u003ca href=\"https://www.kqed.org/news/11939848/a-legacy-of-slavery-for-domestic-workers-californias-new-safety-guidelines-are-long-overdue-say-advocates\">long-standing carve-outs for domestic and agricultural workers\u003c/a>.\u003c/p>\n\u003ch2>Rideshare industry reaction exultant\u003c/h2>\n\u003cp>In a statement following the release of the decision, \u003ca href=\"https://www.lyft.com/blog/posts/lyft-statement-on-california-court-of-appeal-prop-22-decision\">Lyft officials wrote in a blog post\u003c/a>, “We are pleased that the court upheld the democratic will of the voters … We are excited to continue operating our service with no changes.”\u003c/p>\n\u003cfigure id=\"attachment_11944379\" class=\"wp-caption aligncenter\" style=\"max-width: 2560px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11944379\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2023/03/RS16535_IMG_0443.JPG-scaled.jpg\" alt=\"A closeup shot of a black vehicle with a pink Lyft sticker and a black and white Uber sticker on the left side of its windshield. The vehicle sits idle waiting to pick up a customer.\" width=\"2560\" height=\"1707\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS16535_IMG_0443.JPG-scaled.jpg 2560w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS16535_IMG_0443.JPG-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS16535_IMG_0443.JPG-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS16535_IMG_0443.JPG-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS16535_IMG_0443.JPG-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS16535_IMG_0443.JPG-2048x1365.jpg 2048w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS16535_IMG_0443.JPG-1920x1280.jpg 1920w\" sizes=\"(max-width: 2560px) 100vw, 2560px\">\u003cfigcaption class=\"wp-caption-text\">Proposition 22 allows gig companies such as Uber and Lyft to classify their drivers as independent contractors, rather than employees. \u003ccite>(Ericka Cruz Guevarra/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Uber’s chief legal officer, Tony West, wrote in an email to KQED, “Across the state, drivers and couriers have said they are happy with Prop 22, which affords them new benefits while preserving the unique flexibility of app-based work.”\u003c/p>\n\u003cp>The 1st District Court of Appeal in San Francisco did invalidate Prop. 22’s most \u003ca href=\"https://calmatters.org/politics/post-it/2020/10/california-amendment-threshold-proposition-22/\">controversial provision\u003c/a>, one that required a close-to-impossible seven-eighths’ vote of the Legislature to pass any bills that modify Prop. 22. But experts don’t expect Uber or Lyft to appeal, lest they risk the possibility the California Supreme Court agrees with the lower court ruling, and/or strike down all of Prop. 22.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Stanford labor law professor William Gould, who served as chair of the National Labor Relations Board from 1994 to 1998, wrote in an email to KQED that he thinks it’s “more than likely that the California Supreme Court will reverse. Should it not do so, the Biden administration’s new wage and hour rule on who is an employee preempts state law and, if drawn inconsistently with Proposition 22, will trump it constitutionally.”\u003c/p>\n\u003cp>In a separate but related decision, a unanimous 9th Circuit panel \u003ca href=\"https://www.reuters.com/legal/ubers-challenge-calif-contractor-law-revived-by-us-appeals-court-2023-03-17/\">reinstated Uber and Postmates’ constitutional claim\u003c/a> against California’s \u003ca href=\"https://www.kqed.org/news/tag/ab5\">Assembly Bill 5\u003c/a> on Friday. The San Francisco-based appeals panel said the state must face claims that the law is unconstitutional because it singles out app-based transportation businesses while exempting many other industries from the need to justify why they classify some workers as contractors rather than employees.\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>Already, the success of Prop. 22 with California voters at the ballot box in 2020 has inspired a similar measure on the 2024 ballot, one that would \u003ca href=\"https://elections.cdn.sos.ca.gov/ccrov/2023/january/23012jh.pdf\">overturn a new law (PDF)\u003c/a> designed to \u003ca href=\"https://calmatters.org/california-divide/ca-divide-workplace/2022/08/fast-food-workers/\">improve wages and working conditions in fast food\u003c/a>.\u003c/p>\n\u003cp>“No question there are a lot of minimum labor law standards in California, and I understand why employers find them onerous to comply with, not to mention expensive,” said UC Berkeley law professor Catherine Fisk, who wrote a friend-of-the-court brief on behalf of a group of California labor and employment law professors opposed to Prop. 22. She added that she’s “disappointed” by the appeals court decision.\u003c/p>\n\u003cp>“I don’t think it’s really in the public’s best interest to have such a large group of workers who are carved out of the minimum protections of state law. That exists not only to benefit the workers and their families, but the communities that are affected by abject poverty,” she said.\u003c/p>\n\u003ch2>Happy to be independent, unhappy about the pay\u003c/h2>\n\u003cp>“Scott from LA County,” who drives for Uber, says he didn’t even vote in 2020 when the measure was on the ballot. KQED is not sharing Scott’s last name because because he fears the company might retaliate against him for speaking to KQED; he is unaffiliated with either the SEIU or the industry-backed \u003ca href=\"https://protectdriversandservices.com/about/our-coalition/\">Protect App-Based Drivers and Services coalition\u003c/a> (PADS).\u003c/p>\n\u003cp>“I was a little nonchalant about Prop. 22 because I was just getting started, and things were surprisingly good back then,” he said.\u003c/p>\n\u003cp>Scott admitted his opinion changed after Prop. 22 took effect the following January, and he watched the measure’s promised 120% of minimum wage become a ceiling for him, rather than a floor. In other words, he makes about $18.60 an hour these days.\u003c/p>\n\u003cfigure id=\"attachment_11944396\" class=\"wp-caption aligncenter\" style=\"max-width: 2560px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11944396\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2023/03/RS52363_004_SanFrancisco_GigWorkerProtest_11032021-scaled.jpg\" alt='A man stands with his back to the camera wearing a black T-shirt with yellow writing that reads \"Drivers Union Now.\" In the background, two people hold a large white sign that reads, \"Gig Workers Are Essential.\"' width=\"2560\" height=\"1707\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS52363_004_SanFrancisco_GigWorkerProtest_11032021-scaled.jpg 2560w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS52363_004_SanFrancisco_GigWorkerProtest_11032021-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS52363_004_SanFrancisco_GigWorkerProtest_11032021-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS52363_004_SanFrancisco_GigWorkerProtest_11032021-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS52363_004_SanFrancisco_GigWorkerProtest_11032021-1536x1024.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS52363_004_SanFrancisco_GigWorkerProtest_11032021-2048x1365.jpg 2048w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS52363_004_SanFrancisco_GigWorkerProtest_11032021-1920x1280.jpg 1920w\" sizes=\"(max-width: 2560px) 100vw, 2560px\">\u003cfigcaption class=\"wp-caption-text\">Gig workers, including rideshare and delivery drivers, with We Drive Progress and Gig Workers Rising demonstrate outside DoorDash headquarters in San Francisco on Nov. 3, 2021, demanding fair pay and employee rights. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>“But that’s not what independent contractors got into Uber for, to make 120% of minimum wage,” he said. “In the past, I was making $30, $40, $50 an hour.”\u003c/p>\u003c/div>",
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"content": "‘There’s no reward for loyalty. You just kind of always feel like you’re replaceable.’",
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"content": "\u003cdiv class=\"post-body\">\u003cp>That said, Scott still loves choosing his own hours, 20 to 25 a week, and he’s not really bothered by the fact that independent contractors, as defined by Prop. 22, don’t have the same protections as employees under California law.\u003c/p>\n\u003cp>He said what bothers him most, aside from making less money, is his sense that the company is driving out gig workers like him — who remember the days before Prop. 22 and can see the work is becoming less profitable — and relying on high turnover to pull in new people who can’t remember when drivers made more.\u003c/p>\n\u003cp>“There’s no reward for loyalty. You just kind of always feel like you’re replaceable,” Scott said.\u003c/p>\n\u003ch2>Side hustle or livelihood?\u003c/h2>\n\u003cp>The percentage of rideshare drivers who are full time versus part time has been a point of contention between union-friendly Democratic lawmakers in California and the rideshare companies. A report published last year by UC Riverside’s Center for Economic Forecasting and Development for the industry-backed drivers’ coalition found “\u003ca href=\"https://protectdriversandservices.com/wp-content/uploads/2022/03/UCR_CEFD_CA_AppDrivers_Analysis_2_17_2022-41.pdf\">only 23% of drivers report working with platforms on what would conventionally be considered a full-time basis\u003c/a>.”\u003c/p>\n\u003cfigure id=\"attachment_11944401\" class=\"wp-caption aligncenter\" style=\"max-width: 2560px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11944401\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2023/03/RS52369_011_SanFrancisco_GigWorkerProtest_11032021-scaled.jpg\" alt=\"\" width=\"2560\" height=\"1704\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS52369_011_SanFrancisco_GigWorkerProtest_11032021-scaled.jpg 2560w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS52369_011_SanFrancisco_GigWorkerProtest_11032021-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS52369_011_SanFrancisco_GigWorkerProtest_11032021-1020x679.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS52369_011_SanFrancisco_GigWorkerProtest_11032021-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS52369_011_SanFrancisco_GigWorkerProtest_11032021-1536x1022.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS52369_011_SanFrancisco_GigWorkerProtest_11032021-2048x1363.jpg 2048w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS52369_011_SanFrancisco_GigWorkerProtest_11032021-1920x1278.jpg 1920w\" sizes=\"(max-width: 2560px) 100vw, 2560px\">\u003cfigcaption class=\"wp-caption-text\">A demonstrator holds a sign that says ‘Prop 22 Is Unconstitutional’ during a protest outside DoorDash headquarters in San Francisco on Nov. 3, 2021. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>In a recent talk before The Economic Club of Chicago, \u003ca href=\"https://www.youtube.com/watch?t=2131&v=HFKrv9Ub9WI&feature=youtu.be\">Uber CEO Dara Khosrowshahi said the weakening economy is bringing more drivers — he calls them “earners” — online\u003c/a>.\u003c/p>\n\u003cp>“About 70% of our earners are saying inflation is actually one of the reasons why they’re coming on to the platform, because they can earn flexibly. And they can, you know, earn another $500 a week for groceries or whatever else they need to live,” Khosrowshahi said.\u003c/p>\n\u003cp>If drivers are only making a little extra money with the platforms versus relying on the driving for their livelihoods, labor lawyers say, it’s easier for gig companies to argue they aren’t exploiting the drivers by refusing to provide them the benefits employees would receive — or exploiting taxpayers by socializing the costs drivers can’t afford to cover on their own.\u003c/p>\n\u003cp>“We saw this during the pandemic, right after Proposition 22 was enacted,” said Fisk, of UC Berkeley. “Every other employer had paid into the unemployment system. So when their workers became unemployed, they could file a claim for unemployment and be compensated. Uber and Lyft exempted themselves from the unemployment system. Their drivers were left penniless. So what did the companies say? ‘Congress has created a system for independent contractors. You should apply to that.’ Who was paying for that? \u003ca href=\"https://www.kqed.org/news/11812496/uber-and-lyft-arent-paying-for-drivers-unemployment-you-are-confirms-newsom\">The taxpayers\u003c/a>.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cp>\u003cspan style=\"font-weight: 400\">Silicon Valley Bank is best known for its relationships with the tech industry. But the bank also had billions out in loans to developers working on affordable housing projects in the Bay Area\u003c/span>\u003cspan style=\"font-weight: 400\">. Unlike larger banks, regional banks like SVB are more likely to fund local affordable housing projects.\u003c/span>\u003c/p>\n\u003cp>\u003cspan style=\"font-weight: 400\">Now that the bank has collapsed, the future of these projects is precarious, and calls into question how these much-needed affordable housing projects are funded in the first place.\u003c/span>\u003c/p>\n\u003cp>\u003ca href=\"https://drive.google.com/file/d/12e5erqBZ6e3snJ6lVZjcefmeWAeoeF4i/view?usp=share_link\">\u003cem>Episode transcript\u003c/em>\u003c/a>\u003c/p>\n\u003cp>\u003cb>Guest: \u003c/b>\u003ca href=\"https://twitter.com/sydneyfjohnson\">\u003cspan style=\"font-weight: 400\">Sydney Johnson,\u003c/span>\u003c/a>\u003cspan style=\"font-weight: 400\"> KQED reporter\u003c/span>\u003c/p>\n\u003cdiv class=\"card card--enclosed grey\">\n\u003cp id=\"embed-code\" class=\"inconsolata\">\n\u003c!-- iframe plugin v.4.3 wordpress.org/plugins/iframe/ -->\u003cbr>\n\u003ciframe loading=\"lazy\" frameborder=\"0\" height=\"200\" scrolling=\"no\" src=\"https://playlist.megaphone.fm/?e=KQINC7512789498&light=true\" width=\"100%\" class=\"iframe-class\">\u003c/iframe>\n\u003c/p>\n\u003c/div>\n\u003cp>\u003cb>Links:\u003c/b>\u003c/p>\n\u003cul>\n\u003cli style=\"font-weight: 400\">\u003ca href=\"https://www.kqed.org/news/11943688/map-bay-area-affordable-housing-projects-impacted-by-silicon-valley-banks-collapse\">MAP: Bay Area Affordable Housing Projects Impacted by Silicon Valley Bank’s Collapse\u003c/a>\u003c/li>\n\u003cli style=\"font-weight: 400\">\u003ca href=\"https://www.kqed.org/about/17653/help-make-the-bay-even-better\">\u003cspan style=\"font-weight: 400\">The Bay Survey\u003c/span>\u003c/a>\u003c/li>\n\u003c/ul>\n\u003cp>[ad fullwidth]\u003c/p>\u003cp>\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>\u003cspan style=\"font-weight: 400\">Silicon Valley Bank is best known for its relationships with the tech industry. But the bank also had billions out in loans to developers working on affordable housing projects in the Bay Area\u003c/span>\u003cspan style=\"font-weight: 400\">. Unlike larger banks, regional banks like SVB are more likely to fund local affordable housing projects.\u003c/span>\u003c/p>\n\u003cp>\u003cspan style=\"font-weight: 400\">Now that the bank has collapsed, the future of these projects is precarious, and calls into question how these much-needed affordable housing projects are funded in the first place.\u003c/span>\u003c/p>\n\u003cp>\u003ca href=\"https://drive.google.com/file/d/12e5erqBZ6e3snJ6lVZjcefmeWAeoeF4i/view?usp=share_link\">\u003cem>Episode transcript\u003c/em>\u003c/a>\u003c/p>\n\u003cp>\u003cb>Guest: \u003c/b>\u003ca href=\"https://twitter.com/sydneyfjohnson\">\u003cspan style=\"font-weight: 400\">Sydney Johnson,\u003c/span>\u003c/a>\u003cspan style=\"font-weight: 400\"> KQED reporter\u003c/span>\u003c/p>\n\u003cdiv class=\"card card--enclosed grey\">\n\u003cp id=\"embed-code\" class=\"inconsolata\">\n\u003c!-- iframe plugin v.4.3 wordpress.org/plugins/iframe/ -->\u003cbr>\n\u003ciframe loading=\"lazy\" frameborder=\"0\" height=\"200\" scrolling=\"no\" src=\"https://playlist.megaphone.fm/?e=KQINC7512789498&light=true\" width=\"100%\" class=\"iframe-class\">\u003c/iframe>\n\u003c/p>\n\u003c/div>\n\u003cp>\u003cb>Links:\u003c/b>\u003c/p>\n\u003cul>\n\u003cli style=\"font-weight: 400\">\u003ca href=\"https://www.kqed.org/news/11943688/map-bay-area-affordable-housing-projects-impacted-by-silicon-valley-banks-collapse\">MAP: Bay Area Affordable Housing Projects Impacted by Silicon Valley Bank’s Collapse\u003c/a>\u003c/li>\n\u003cli style=\"font-weight: 400\">\u003ca href=\"https://www.kqed.org/about/17653/help-make-the-bay-even-better\">\u003cspan style=\"font-weight: 400\">The Bay Survey\u003c/span>\u003c/a>\u003c/li>\n\u003c/ul>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cp>Nkarta Therapeutics, among a throng of \u003ca href=\"https://www.kqed.org/news/11933882/beyond-vaccines-biotech-is-booming-in-the-bay-area-despite-a-cooling-economy\">biotech companies in South San Francisco\u003c/a>, had $350 million in deposits and assets in Silicon Valley Bank.\u003c/p>\n\u003cp>But last Friday, after the bank failed, it suddenly had no access to those funds, said Paul Hastings, the company’s CEO.\u003c/p>\n\u003cp>[aside label=\"More California Coverage\" tag=\"silicon-valley\"]\u003c/p>\n\u003cp>“Oh, my goodness. It was like a hurricane of thoughts about what’s going to happen here,” he said.\u003c/p>\n\u003cp>Hastings said another bank that works with SVB was able to wire him money on Monday, just in time for Nkarta to make payroll the next day.\u003c/p>\n\u003cp>Nearly half of the country’s biotech and climate-technology companies, many of them headquartered in the Bay Area, banked with Silicon Valley Bank. Last year, SVB committed to investing at least $5 billion in the clean-tech industry.\u003c/p>\n\u003cp>But even as the FDIC quickly stepped in to guarantee deposits following the bank’s collapse, many companies have been scrambling to find new banks, open accounts and reorganize payroll systems.\u003c/p>\n\u003cp>Although Rob Chess, chair of Nektar, was deeply relieved the government stepped in, he pointed to another big problem many former SVB clients will undoubtedly face.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>“Who are we going to negotiate with? Silicon Valley was both the most sophisticated and, frankly, the easiest to deal with, and they were the leaders of the field. So it removes a capital source for many companies,” Chess said.\u003c/p>\n\u003cp>To his point, SVB was widely known for incubating ambitious climate and biotech start-ups, and was a valuable resource for new companies looking for a bank willing to invest in innovative and somewhat risky ventures.\u003c/p>\n\u003cp>[pullquote size=\"medium\" align=\"right\" citation=\"Rob Chess, chair, Nektar Therapeutics\"]‘Who are we going to negotiate with? Silicon Valley was both the most sophisticated and, frankly, the easiest to deal with, and they were the leaders of the field.’[/pullquote]\u003c/p>\n\u003cp>Peter Reinhardt, CEO of Charm Industrial, a carbon-removal company, said his company had millions of dollars in cash deposits at SVB, in addition to checking, savings and other accounts.\u003c/p>\n\u003cp>Reinhardt noted that although most SVB clients with remaining deposits in the bank were essentially “made whole by the FDIC,” it’s still unclear how SVB plans to address companies with large lines of debt offered by the bank in an effort to help start-ups build their assets.\u003c/p>\n\u003cp>“I think there’s some concern that it could have a ripple effect for any companies that are really reliant on these more complicated products than just deposits,” Reinhardt said. “I do think it’s probably more likely to affect hardware and climate-tech companies than software companies.”\u003c/p>\n\u003cp>He added that about 60% of community solar projects across the U.S. banked with SVB, and it remains unclear how those projects will be affected.\u003c/p>\n\u003cp>For Ryan Panchadsaram, an advisor at Kleiner Perkins, a major Silicon Valley venture capital fund that invests in climate-tech companies, SVB’s collapse means existing banks will have to fill the void when it comes to funding early stage companies that have unique ideas.\u003c/p>\n\u003cp>“Will [banks] help finance them? How do you give them a bit of venture debt to do the risky thing?” he said. “I think that’s what we’re all going to have to see together.”\u003c/p>\n\u003cp>\u003c/p>\n",
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"content": "\u003cp>The \u003ca href=\"https://www.pbs.org/newshour/economy/why-silicon-valley-bank-and-signature-bank-failed-so-fast#:~:text=Customers%20of%20SVB%20were%20withdrawing,%242%20billion%20in%20new%20capital.\">recent downfall of Silicon Valley Bank (SVB)\u003c/a> has a number of major Bay Area affordable housing developers scrambling to find new lending options for projects that are desperately needed to address the region’s housing crisis.\u003c/p>\n\u003cp>KQED has so far identified 11 in-process or recently completed affordable housing projects in several Bay Area cities — comprising more than 1,000 units — dependent on loans from SVB, the Santa Clara-based lender that failed on Friday following a social media-fueled bank run.\u003c/p>\n\u003cp>“When we woke up Friday, it was like, ‘What do you mean SVB is going away?’” said Linda Mandolini, president of Eden Housing, an affordable housing developer with projects across the Bay Area, including three funded with SVB loans. Eden was also prepared to secure a loan with SVB for a new project later this spring, just as federal officials seized the bank’s $209 billion in assets.\u003c/p>\n\u003cp>SVB has loaned or invested nearly $2 billion to fund affordable housing projects in the Bay Area, according to its website.\u003c/p>\n\u003cp>“All of our financing is tied to time,” said Mandolini. “We don’t want to stop the projects.”\u003c/p>\n\u003cp>\u003ca href=\"https://money.usnews.com/banking/articles/how-the-fdic-protects-your-money-after-a-bank-run\">Since the Federal Deposit Insurance Corporation (FDIC) stepped in Friday\u003c/a>, Mandolini said, she has been assured that lines of credit from SVB will continue for projects already under construction — including the $42 million in loans SVB originally agreed to. But she said the bank’s collapse leaves many unanswered questions — even for Eden’s already completed projects — like how much of the more than $50 million the bank promised in continued financing will now actually be available.\u003c/p>\n\u003cp>\u003c!-- iframe plugin v.4.3 wordpress.org/plugins/iframe/ -->\u003cbr>\n\u003ciframe loading=\"lazy\" title=\"Bay Area Affordable Housing Developments With SVB Loans/Equity\" aria-label=\"Map\" id=\"datawrapper-chart-sp8pw\" src=\"https://datawrapper.dwcdn.net/sp8pw/9/\" scrolling=\"no\" frameborder=\"0\" style=\"border: none;\" width=\"750\" height=\"750\" data-external=\"1\" class=\"iframe-class\">\u003c/iframe>\u003c/p>\n\u003cp>In San Francisco, at least five affordable housing projects at varying stages of development, comprising nearly 500 units, were largely funded by SVB loans and are now at risk. They include the 104-unit Maceo May development on Treasure Island, and the 135-unit Shirley Chisholm Village in the Outer Sunset.\u003c/p>\n\u003cp>The city, in partnership with Mercy Housing, was also preparing to finalize a loan contract with Silicon Valley Bank last week for the Kelsey Civic Center, a proposed 112-unit affordable housing development directly across the street from City Hall.\u003c/p>\n\u003cp>San Francisco officials say they are now seeking alternative lending and financing options.\u003c/p>\n\u003cp>“We are keeping an eye on other lenders that have worked with project sponsors on affordable housing,” said Anne Stanley, a spokesperson for the Mayor’s Office of Housing and Community Development. “Right now we are just trying to make sure the next step doesn’t result in any additional delays and new construction loans are consistent.”\u003c/p>\n\u003cp>Timing is everything in housing construction. The longer it takes to secure new deals, the more costs developers and housing providers absorb.[aside label=\"related coverage\" tag=\"affordable-housing\"]“I’m very concerned. Anything that causes a delay or might disrupt financing or increase costs is a problem,” said state Sen. Scott Wiener (D-San Francisco), who has called on San Francisco and the state to rapidly ramp up affordable housing construction. “We don’t know what’s going to happen to these projects.”\u003c/p>\n\u003cp>Earlier this week, San Francisco Supervisor Ahsha Safaí sent a letter to San Francisco’s treasurer and other key city leaders requesting a report on the fiscal impact of the bank’s collapse on the city’s affordable housing projects and its retirement fund for public employees.\u003c/p>\n\u003cp>“This is on the top of everyone’s mind. It impacts our local economy in so many ways and this is something we need to take seriously and do everything we can,” he told KQED. “The response has been swift and strong, and I appreciate how the feds and Treasury are reacting to ensure depositors. We just have to monitor this and be as cautious and aware as possible.”\u003c/p>\n\u003cp>Despite the roller-coaster week, Mandolini of Eden Housing said she remained optimistic about finding a new lender for the affected projects without an interruption in the construction process.\u003c/p>\n\u003cp>“Because there is such a huge shortage of housing, banks feel this is a good place to achieve their community objectives,” she said. “It’s good, steady business for the banks. It’s not super glam but it’s good community-based business.”[ad fullwidth]\u003c/p>\n\u003cp>\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>The \u003ca href=\"https://www.pbs.org/newshour/economy/why-silicon-valley-bank-and-signature-bank-failed-so-fast#:~:text=Customers%20of%20SVB%20were%20withdrawing,%242%20billion%20in%20new%20capital.\">recent downfall of Silicon Valley Bank (SVB)\u003c/a> has a number of major Bay Area affordable housing developers scrambling to find new lending options for projects that are desperately needed to address the region’s housing crisis.\u003c/p>\n\u003cp>KQED has so far identified 11 in-process or recently completed affordable housing projects in several Bay Area cities — comprising more than 1,000 units — dependent on loans from SVB, the Santa Clara-based lender that failed on Friday following a social media-fueled bank run.\u003c/p>\n\u003cp>“When we woke up Friday, it was like, ‘What do you mean SVB is going away?’” said Linda Mandolini, president of Eden Housing, an affordable housing developer with projects across the Bay Area, including three funded with SVB loans. Eden was also prepared to secure a loan with SVB for a new project later this spring, just as federal officials seized the bank’s $209 billion in assets.\u003c/p>\n\u003cp>SVB has loaned or invested nearly $2 billion to fund affordable housing projects in the Bay Area, according to its website.\u003c/p>\n\u003cp>“All of our financing is tied to time,” said Mandolini. “We don’t want to stop the projects.”\u003c/p>\n\u003cp>\u003ca href=\"https://money.usnews.com/banking/articles/how-the-fdic-protects-your-money-after-a-bank-run\">Since the Federal Deposit Insurance Corporation (FDIC) stepped in Friday\u003c/a>, Mandolini said, she has been assured that lines of credit from SVB will continue for projects already under construction — including the $42 million in loans SVB originally agreed to. But she said the bank’s collapse leaves many unanswered questions — even for Eden’s already completed projects — like how much of the more than $50 million the bank promised in continued financing will now actually be available.\u003c/p>\n\u003cp>\u003c!-- iframe plugin v.4.3 wordpress.org/plugins/iframe/ -->\u003cbr>\n\u003ciframe loading=\"lazy\" title=\"Bay Area Affordable Housing Developments With SVB Loans/Equity\" aria-label=\"Map\" id=\"datawrapper-chart-sp8pw\" src=\"https://datawrapper.dwcdn.net/sp8pw/9/\" scrolling=\"no\" frameborder=\"0\" style=\"border: none;\" width=\"750\" height=\"750\" data-external=\"1\" class=\"iframe-class\">\u003c/iframe>\u003c/p>\n\u003cp>In San Francisco, at least five affordable housing projects at varying stages of development, comprising nearly 500 units, were largely funded by SVB loans and are now at risk. They include the 104-unit Maceo May development on Treasure Island, and the 135-unit Shirley Chisholm Village in the Outer Sunset.\u003c/p>\n\u003cp>The city, in partnership with Mercy Housing, was also preparing to finalize a loan contract with Silicon Valley Bank last week for the Kelsey Civic Center, a proposed 112-unit affordable housing development directly across the street from City Hall.\u003c/p>\n\u003cp>San Francisco officials say they are now seeking alternative lending and financing options.\u003c/p>\n\u003cp>“We are keeping an eye on other lenders that have worked with project sponsors on affordable housing,” said Anne Stanley, a spokesperson for the Mayor’s Office of Housing and Community Development. “Right now we are just trying to make sure the next step doesn’t result in any additional delays and new construction loans are consistent.”\u003c/p>\n\u003cp>Timing is everything in housing construction. The longer it takes to secure new deals, the more costs developers and housing providers absorb.\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>“I’m very concerned. Anything that causes a delay or might disrupt financing or increase costs is a problem,” said state Sen. Scott Wiener (D-San Francisco), who has called on San Francisco and the state to rapidly ramp up affordable housing construction. “We don’t know what’s going to happen to these projects.”\u003c/p>\n\u003cp>Earlier this week, San Francisco Supervisor Ahsha Safaí sent a letter to San Francisco’s treasurer and other key city leaders requesting a report on the fiscal impact of the bank’s collapse on the city’s affordable housing projects and its retirement fund for public employees.\u003c/p>\n\u003cp>“This is on the top of everyone’s mind. It impacts our local economy in so many ways and this is something we need to take seriously and do everything we can,” he told KQED. “The response has been swift and strong, and I appreciate how the feds and Treasury are reacting to ensure depositors. We just have to monitor this and be as cautious and aware as possible.”\u003c/p>\n\u003cp>Despite the roller-coaster week, Mandolini of Eden Housing said she remained optimistic about finding a new lender for the affected projects without an interruption in the construction process.\u003c/p>\n\u003cp>“Because there is such a huge shortage of housing, banks feel this is a good place to achieve their community objectives,” she said. “It’s good, steady business for the banks. It’s not super glam but it’s good community-based business.”\u003c/p>\u003c/div>",
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"slug": "bay-area-land-is-so-expensive-how-do-urban-farms-survive",
"title": "Bay Area Land Is So Expensive. How Do Urban Farms Survive?",
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"content": "\u003cp>\u003ca href=\"http://bit.ly/3Ltoxfg\">\u003cem>Read a transcript of this episode here.\u003c/em>\u003c/a>\u003c/p>\n\u003cp>Carlos Urbina used to ride the San José light rail every day to work. As he looked out the train window, he’d pass by big buildings, busy intersections, offices and apartment complexes. But there was one part of his daily commute that always caught his attention. Amid all that urban infrastructure, the train would pass by a sprawling orange orchard.\u003c/p>\n\u003cp>[baycuriouspodcastinfo]\u003c/p>\n\u003cp>This orchard was striking. It took up a whole block with rows and rows of big, bushy orange trees. It looked like a green-and-orange haven amid the North San José suburban sprawl. People would often stop and take photos of the farm, wondering what it was doing in the middle of Silicon Valley. Carlos would spot tractors on the property and farmworkers tending to the trees.\u003c/p>\n\u003cp>“It was weird to me to see a farm in the middle of what seems like super-valuable real estate and, you know, like they’re just doing their farming stuff,” said Carlos. “I found it very curious.”\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>The orchard struck Carlos for another reason. It reminded him of his favorite place to visit as a child: his grandma’s house. Carlos grew up in Mexico City, and his grandma lived in a small agricultural community in a neighboring state called Tlaxcala. With its bountiful fruit trees and mountains in the distance, the orange orchard bore a striking resemblance to that place.\u003c/p>\n\u003cp>“I got a little nostalgic for that,” he said.\u003c/p>\n\u003cp>But Carlos also wondered how a scene like that could exist in the middle of Silicon Valley, with its notoriously high land prices.\u003c/p>\n\u003cp>“What I’d like to know is, who owns it? What kind of products do they grow there? And, finally, how come they are still the owners of that piece of farm?” he asked.\u003c/p>\n\u003ch2>The orchard\u003c/h2>\n\u003cp>The orange orchard is located in north San José, right across from the River Oaks light-rail station. It’s in a fairly suburban area, sitting amid a sea of tech company headquarters, school campuses and manufacturing facilities.\u003c/p>\n\u003cp>After some sleuthing, we tracked down one of the current owners of the property: Alice Moitozo.\u003c/p>\n\u003cp>Moitozo is 93 years old and co-owns the orchard with her sister-in-law. She’s lived in a house in the middle of the orchard for 72 years. Her father-in-law, a Portuguese immigrant, bought the property in 1915 and established a dairy operation on-site. Eventually, with the influx of canneries in the region, the Moitozos switched to growing fruit, specifically pears.\u003c/p>\n\u003cp>“This whole area here, north San José, was all pear orchards,” said Moitozo. The canneries eventually all moved away, many to the San Joaquin Valley. “So my husband and his brother planted the orange trees.”\u003c/p>\n\u003cp>That was around the 1960s. At a time when property values in Santa Clara Valley were skyrocketing — convincing many farmers to sell their land — the Moitozos stayed and planted the orange trees.\u003c/p>\n\u003cfigure id=\"attachment_11943645\" class=\"wp-caption aligncenter\" style=\"max-width: 1920px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11943645\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2023/03/RS63268_029_KQED_ValleyVerdeFarmSJ_02282023-qut.jpg\" alt=\"An orange tree with dozens of large oranges on its branches that look ready to be picked. \" width=\"1920\" height=\"1280\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS63268_029_KQED_ValleyVerdeFarmSJ_02282023-qut.jpg 1920w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS63268_029_KQED_ValleyVerdeFarmSJ_02282023-qut-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS63268_029_KQED_ValleyVerdeFarmSJ_02282023-qut-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS63268_029_KQED_ValleyVerdeFarmSJ_02282023-qut-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS63268_029_KQED_ValleyVerdeFarmSJ_02282023-qut-1536x1024.jpg 1536w\" sizes=\"(max-width: 1920px) 100vw, 1920px\">\u003cfigcaption class=\"wp-caption-text\">When canning was a larger industry in San José, pears were grown on this land. In the 1960s, as canneries were moving away, the owners turned it into an orange orchard. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Moitozo’s husband has since passed away, but their son now manages the orchard, which remains fully operational. They used to sell the oranges, but now they \u003ca href=\"https://www.shfb.org/impact/blog/one-of-the-last-surviving-orchards-in-silicon-valley-donates-92843-pounds-of-oranges/\">donate them\u003c/a> to a local food bank. At this point, it’s essentially an extravagant garden.\u003c/p>\n\u003cp>Over the years, Moitozo said she’s had many buyers express interest in her approximately 15-acre property.\u003c/p>\n\u003cp>“I had a fellow come to my door one time … and he offered me a million dollars an acre,” she said. “I said, ‘No, I’m not selling. I’m going to die here.’”\u003c/p>\n\u003ch2>Urban farming today\u003c/h2>\n\u003cp>While Silicon Valley has largely converted from farmland to techland, there are still hundreds of urban farms all over the Bay Area. From small-scale vegetables to rooftop flowers, urban farmers are growing all different kinds of things.\u003c/p>\n\u003cp>What they all have in common is that it’s hard to make it work financially here.\u003c/p>\n\u003cp>“It’s incredibly difficult to be a commercially viable urban farm,” said Eli Zigas, food and agriculture policy director at the San Francisco Bay Area Planning and Urban Research Association (SPUR).\u003c/p>\n\u003cp>To understand how they survive, Zigas divides Bay Area urban farms into two general categories: commercial and noncommercial. Commercial farms are ones that make a living on what they grow.\u003cbr>\n“They are in it for the business of agriculture,” said Zigas. Perhaps they sell at a local farmers market or have an online shop.\u003c/p>\n\u003cp>Noncommercial farms, on the other hand, tend to focus more on education.[emailsignup newslettername=\"baycurious\" align=\"right\"]“Those projects are things like community gardens, school gardens and teaching farms,” Zigas said. “In the Bay Area and most of the country, those are the most common forms of urban farming.”\u003c/p>\n\u003cp>Nonprofit farms are incredibly important to urban communities, said Zigas, because they help people connect with the land and learn about ecology, seasons and how to grow their own food. Even the U.S. Department of Agriculture has an advisory committee and various grant opportunities targeted specifically at urban farms.\u003c/p>\n\u003cp>While not all urban farms fall squarely into these two categories, Zigas said it’s a helpful framework for understanding how they survive here.\u003c/p>\n\u003cp>To understand it even better, we visited some farms.\u003c/p>\n\u003ch2>‘A skill for life’\u003c/h2>\n\u003cp>At Valley Verde, a nonprofit farm in downtown San José, the mission is simple.\u003c/p>\n\u003cp>“We want people to learn how to grow their own food,” said Lovepreet Kaur, the farm’s executive director. “We want to teach them a skill for life. We don’t want to just provide a vegetable and say, ‘OK, here you go,’ and that’s it.”\u003c/p>\n\u003cp>Valley Verde was founded in 2012 and currently offers a handful of educational gardening programs specifically for lower-income community members in San José. For example, their Shared Garden program provides participants with the tools and know-how for gardening at home, including a class and materials such as raised beds, soil and seedlings.\u003c/p>\n\u003cfigure id=\"attachment_11943648\" class=\"wp-caption aligncenter\" style=\"max-width: 1920px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11943648\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2023/03/RS63252_008_KQED_ValleyVerdeFarmSJ_02282023-qut.jpg\" alt=\"A raised garden bed with several small green plants growing. A small greenhouse is in the background.\" width=\"1920\" height=\"1280\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS63252_008_KQED_ValleyVerdeFarmSJ_02282023-qut.jpg 1920w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS63252_008_KQED_ValleyVerdeFarmSJ_02282023-qut-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS63252_008_KQED_ValleyVerdeFarmSJ_02282023-qut-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS63252_008_KQED_ValleyVerdeFarmSJ_02282023-qut-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS63252_008_KQED_ValleyVerdeFarmSJ_02282023-qut-1536x1024.jpg 1536w\" sizes=\"(max-width: 1920px) 100vw, 1920px\">\u003cfigcaption class=\"wp-caption-text\">Native pollinator plants grow at Valley Verde. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Those skills can help alleviate food insecurity — a significant issue in Silicon Valley.\u003c/p>\n\u003cp>The farm also grows food that is culturally relevant to its participants, including okra, bitter melon and Thai chili peppers. That’s important to Kaur, who immigrated to the U.S. from India when she was 11 years old.\u003c/p>\n\u003cp>“When I came here to the U.S., there were a lot of vegetables that I grew up eating that were no longer accessible to me,” she said. “I didn’t see them at any stores, or if you did, they were very, very expensive.”\u003c/p>\n\u003cfigure id=\"attachment_11943650\" class=\"wp-caption aligncenter\" style=\"max-width: 1920px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"wp-image-11943650 size-full\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2023/03/RS63248_010_KQED_ValleyVerdeFarmSJ_02282023-qut.jpg\" alt=\"A bespectacled Indian woman with her head completely covered in a black scarf knotted at the nape of her neck, bends over and holds the tip of a leaf of a purple and green plant, growing in a raised bed, between her first finger and thumb. \" width=\"1920\" height=\"1280\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS63248_010_KQED_ValleyVerdeFarmSJ_02282023-qut.jpg 1920w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS63248_010_KQED_ValleyVerdeFarmSJ_02282023-qut-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS63248_010_KQED_ValleyVerdeFarmSJ_02282023-qut-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS63248_010_KQED_ValleyVerdeFarmSJ_02282023-qut-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS63248_010_KQED_ValleyVerdeFarmSJ_02282023-qut-1536x1024.jpg 1536w\" sizes=\"(max-width: 1920px) 100vw, 1920px\">\u003cfigcaption class=\"wp-caption-text\">Lovepreet Kaur looks at a Japanese red mustard plant at Valley Verde. The farm is intentional about growing plants that are culturally relevant to community members and may be hard to find. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>But running these programs for free isn’t easy. Like most nonprofits, Valley Verde survives on grants, including from the Health Trust and the Lucile Packard Foundation. But according to Kaur, the biggest challenge is accessing land.\u003c/p>\n\u003cp>“We want to stay either downtown or on the east side,” said Kaur. “Wherever we serve the community, we want to be in our community. We don’t want to be far away from them.”\u003c/p>\n\u003cp>There’s plenty of land available in more rural areas or in the hills surrounding Silicon Valley, but Kaur said they need to be accessible to their program participants to maintain their mission.\u003c/p>\n\u003cp>Valley Verde has moved multiple times over the last few years. Right now, they’re leasing their lot from Google, which is charging them only $1 per month. But with only two years left on that lease, Kaur’s already starting to think about what comes next. She hopes the next move will be permanent.\u003c/p>\n\u003cp>“It is extremely stressful to be moving from one place to another, especially when you have plants. There’s a high mortality every time we try to move the plants while they’re still in their growing stages,” she said.\u003c/p>\n\u003cfigure id=\"attachment_11943651\" class=\"wp-caption aligncenter\" style=\"max-width: 1920px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"wp-image-11943651 size-full\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2023/03/RS63243_004_KQED_ValleyVerdeFarmSJ_02282023-qut.jpg\" alt=\"A bespectacled Indian woman with her head completely covered in a black scarf knotted at the nape of her neck touches soil in a small container with a just-sprouted plant. \" width=\"1920\" height=\"1280\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS63243_004_KQED_ValleyVerdeFarmSJ_02282023-qut.jpg 1920w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS63243_004_KQED_ValleyVerdeFarmSJ_02282023-qut-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS63243_004_KQED_ValleyVerdeFarmSJ_02282023-qut-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS63243_004_KQED_ValleyVerdeFarmSJ_02282023-qut-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS63243_004_KQED_ValleyVerdeFarmSJ_02282023-qut-1536x1024.jpg 1536w\" sizes=\"(max-width: 1920px) 100vw, 1920px\">\u003cfigcaption class=\"wp-caption-text\">Kaur checks on seedlings in a greenhouse at Valley Verde. She says moving plants to a new location is a tricky process, and not all plants survive. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003ch2>Farming in the sky\u003c/h2>\n\u003cp>As opposed to nonprofit farms like Valley Verde, commercial operations in the Bay Area are harder to come by, which makes Bluma Farm, a commercial flower farm based in Berkeley, a rarity. In fact, founder and owner Joanna Letz doesn’t know anyone else in the Bay Area operating a for-profit farm in such an urban environment.\u003c/p>\n\u003cp>Bluma’s situation is unique; the farm is spread across 15 modular apartment rooftops near downtown Berkeley and boasts a spectacular 360-degree view stretching from the Berkeley hills to downtown San Francisco.\u003c/p>\n\u003cp>Letz started growing flowers here in 2019, just a couple years after the building was built. She grows all kinds of flowers: godetia, nigella, violas, larkspur. The farm looks like a mosaic of raised beds in the sky, punctuated with a rainbow of flowers.\u003c/p>\n\u003cfigure id=\"attachment_11943660\" class=\"wp-caption aligncenter\" style=\"max-width: 1980px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11943660\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2023/03/nicola-parisi_kitchen-table-advisors_bluma-farm_1406.jpg\" alt=\"A woman walking through a rooftop garden, holding a gathering of flowers, with apartments and a mountain in the distance. \" width=\"1980\" height=\"1238\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/nicola-parisi_kitchen-table-advisors_bluma-farm_1406.jpg 1980w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/nicola-parisi_kitchen-table-advisors_bluma-farm_1406-800x500.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/nicola-parisi_kitchen-table-advisors_bluma-farm_1406-1020x638.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/nicola-parisi_kitchen-table-advisors_bluma-farm_1406-160x100.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/nicola-parisi_kitchen-table-advisors_bluma-farm_1406-1536x960.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/nicola-parisi_kitchen-table-advisors_bluma-farm_1406-1920x1200.jpg 1920w\" sizes=\"(max-width: 1980px) 100vw, 1980px\">\u003cfigcaption class=\"wp-caption-text\">Bluma Farm founder and owner Joanna Letz runs her business on 15 modular apartment rooftops. \u003ccite>(Courtesy of Nicola Parisi)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>At first, Letz said it was hard transitioning from farming on the ground to the roof. But now that she’s more used to it, she sees “all the really important benefits of farming on a roof and also just the ability to be growing in the city and showing other people what’s possible.”\u003c/p>\n\u003cp>As a for-profit business, Bluma has various revenue streams. About half their income comes from weddings, though that changed somewhat during the pandemic, said Letz. She sells some flowers wholesale and some retail, and she has a flower-subscription service.\u003c/p>\n\u003cp>“Cut flowers are higher profit per square foot than just about any other crop I can think of,” she said.\u003c/p>\n\u003cp>Still, it’s hard to make it work financially — especially in such a high-priced area.\u003c/p>\n\u003cp>“I try to keep my prices as high as I can because I want myself and my employees to be able to make enough money to live here,” she said. “And that’s still hard.”\u003c/p>\n\u003cfigure id=\"attachment_11943663\" class=\"wp-caption alignright\" style=\"max-width: 640px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"wp-image-11943663 size-large\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2023/03/nicola-parisi_kitchen-table-advisors_bluma-farm_1146-1020x1428.jpg\" alt=\"A smiling white woman with long brown hair in a bun, a white-and-gray striped sweater, a tool belt, and brown boots pulls back some opaque plastic to reveal seedlings underneath.\" width=\"640\" height=\"896\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/nicola-parisi_kitchen-table-advisors_bluma-farm_1146-1020x1428.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/nicola-parisi_kitchen-table-advisors_bluma-farm_1146-800x1120.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/nicola-parisi_kitchen-table-advisors_bluma-farm_1146-160x224.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/nicola-parisi_kitchen-table-advisors_bluma-farm_1146-1097x1536.jpg 1097w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/nicola-parisi_kitchen-table-advisors_bluma-farm_1146.jpg 1414w\" sizes=\"(max-width: 640px) 100vw, 640px\">\u003cfigcaption class=\"wp-caption-text\">Letz says flowers earn a high return per square foot. \u003ccite>(Courtesy of Nicola Parisi)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>But it’s important to her to stay in the city, where she hopes more rooftop farms will start to emerge.\u003c/p>\n\u003cp>“There’s a lot of buildings that have gone up just in the time that I’ve been farming here,” she said, pointing to some buildings in the distance that don’t have rooftop farms. “What could we be doing with them that we’re not?”\u003c/p>\n\u003cp>Letz said she’s especially passionate about teaching youth about farming and the power of growing your own produce. She currently works with a handful of interns from local high schools.\u003c/p>\n\u003cp>“That makes me excited … that we can get people up here and experience this,” she said.\u003c/p>\n\u003cp>That’s why, despite the challenges, we should be fighting to keep urban farms here in the Bay Area, said SPUR’s Zigas.\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp>“[It’s] not about the number of people we can feed, but the number of people we can reach or touch through education and awareness,” he said. “And for that reason we should try and have more spaces where people can learn about food and how it’s grown.”\u003c/p>\n\n",
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"excerpt": "There are a handful of farms within our big cities. But with land at a premium, how can these small growers afford to grow food in an urban environment?",
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"title": "Bay Area Land Is So Expensive. How Do Urban Farms Survive? | KQED",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>\u003ca href=\"http://bit.ly/3Ltoxfg\">\u003cem>Read a transcript of this episode here.\u003c/em>\u003c/a>\u003c/p>\n\u003cp>Carlos Urbina used to ride the San José light rail every day to work. As he looked out the train window, he’d pass by big buildings, busy intersections, offices and apartment complexes. But there was one part of his daily commute that always caught his attention. Amid all that urban infrastructure, the train would pass by a sprawling orange orchard.\u003c/p>\n\u003cp>\u003c/p>\u003cp>\u003caside class=\"alignleft utils-parseShortcode-shortcodes-__bayCuriousPodcastShortcode__bayCurious\">\u003cimg src=https://cdn.kqed.org/wp-content/uploads/2023/02/bayCuriousLogo.png alt=\"Bay Curious Podcast\" loading=\"lazy\" />\n \u003ca href=\"/news/series/baycurious\">Bay Curious\u003c/a> is a podcast that answers your questions about the Bay Area.\n Subscribe on \u003ca href=\"https://itunes.apple.com/us/podcast/bay-curious/id1172473406\" target=\"_blank\" rel=\"noopener noreferrer\">Apple Podcasts\u003c/a>,\n \u003ca href=\"http://www.npr.org/podcasts/500557090/bay-curious\" target=\"_blank\" rel=\"noopener noreferrer\">NPR One\u003c/a> or your favorite podcast platform.\u003c/aside>\u003c/p>\u003cp>\u003c/p>\n\u003cp>This orchard was striking. It took up a whole block with rows and rows of big, bushy orange trees. It looked like a green-and-orange haven amid the North San José suburban sprawl. People would often stop and take photos of the farm, wondering what it was doing in the middle of Silicon Valley. Carlos would spot tractors on the property and farmworkers tending to the trees.\u003c/p>\n\u003cp>“It was weird to me to see a farm in the middle of what seems like super-valuable real estate and, you know, like they’re just doing their farming stuff,” said Carlos. “I found it very curious.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>The orchard struck Carlos for another reason. It reminded him of his favorite place to visit as a child: his grandma’s house. Carlos grew up in Mexico City, and his grandma lived in a small agricultural community in a neighboring state called Tlaxcala. With its bountiful fruit trees and mountains in the distance, the orange orchard bore a striking resemblance to that place.\u003c/p>\n\u003cp>“I got a little nostalgic for that,” he said.\u003c/p>\n\u003cp>But Carlos also wondered how a scene like that could exist in the middle of Silicon Valley, with its notoriously high land prices.\u003c/p>\n\u003cp>“What I’d like to know is, who owns it? What kind of products do they grow there? And, finally, how come they are still the owners of that piece of farm?” he asked.\u003c/p>\n\u003ch2>The orchard\u003c/h2>\n\u003cp>The orange orchard is located in north San José, right across from the River Oaks light-rail station. It’s in a fairly suburban area, sitting amid a sea of tech company headquarters, school campuses and manufacturing facilities.\u003c/p>\n\u003cp>After some sleuthing, we tracked down one of the current owners of the property: Alice Moitozo.\u003c/p>\n\u003cp>Moitozo is 93 years old and co-owns the orchard with her sister-in-law. She’s lived in a house in the middle of the orchard for 72 years. Her father-in-law, a Portuguese immigrant, bought the property in 1915 and established a dairy operation on-site. Eventually, with the influx of canneries in the region, the Moitozos switched to growing fruit, specifically pears.\u003c/p>\n\u003cp>“This whole area here, north San José, was all pear orchards,” said Moitozo. The canneries eventually all moved away, many to the San Joaquin Valley. “So my husband and his brother planted the orange trees.”\u003c/p>\n\u003cp>That was around the 1960s. At a time when property values in Santa Clara Valley were skyrocketing — convincing many farmers to sell their land — the Moitozos stayed and planted the orange trees.\u003c/p>\n\u003cfigure id=\"attachment_11943645\" class=\"wp-caption aligncenter\" style=\"max-width: 1920px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11943645\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2023/03/RS63268_029_KQED_ValleyVerdeFarmSJ_02282023-qut.jpg\" alt=\"An orange tree with dozens of large oranges on its branches that look ready to be picked. \" width=\"1920\" height=\"1280\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS63268_029_KQED_ValleyVerdeFarmSJ_02282023-qut.jpg 1920w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS63268_029_KQED_ValleyVerdeFarmSJ_02282023-qut-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS63268_029_KQED_ValleyVerdeFarmSJ_02282023-qut-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS63268_029_KQED_ValleyVerdeFarmSJ_02282023-qut-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS63268_029_KQED_ValleyVerdeFarmSJ_02282023-qut-1536x1024.jpg 1536w\" sizes=\"(max-width: 1920px) 100vw, 1920px\">\u003cfigcaption class=\"wp-caption-text\">When canning was a larger industry in San José, pears were grown on this land. In the 1960s, as canneries were moving away, the owners turned it into an orange orchard. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Moitozo’s husband has since passed away, but their son now manages the orchard, which remains fully operational. They used to sell the oranges, but now they \u003ca href=\"https://www.shfb.org/impact/blog/one-of-the-last-surviving-orchards-in-silicon-valley-donates-92843-pounds-of-oranges/\">donate them\u003c/a> to a local food bank. At this point, it’s essentially an extravagant garden.\u003c/p>\n\u003cp>Over the years, Moitozo said she’s had many buyers express interest in her approximately 15-acre property.\u003c/p>\n\u003cp>“I had a fellow come to my door one time … and he offered me a million dollars an acre,” she said. “I said, ‘No, I’m not selling. I’m going to die here.’”\u003c/p>\n\u003ch2>Urban farming today\u003c/h2>\n\u003cp>While Silicon Valley has largely converted from farmland to techland, there are still hundreds of urban farms all over the Bay Area. From small-scale vegetables to rooftop flowers, urban farmers are growing all different kinds of things.\u003c/p>\n\u003cp>What they all have in common is that it’s hard to make it work financially here.\u003c/p>\n\u003cp>“It’s incredibly difficult to be a commercially viable urban farm,” said Eli Zigas, food and agriculture policy director at the San Francisco Bay Area Planning and Urban Research Association (SPUR).\u003c/p>\n\u003cp>To understand how they survive, Zigas divides Bay Area urban farms into two general categories: commercial and noncommercial. Commercial farms are ones that make a living on what they grow.\u003cbr>\n“They are in it for the business of agriculture,” said Zigas. Perhaps they sell at a local farmers market or have an online shop.\u003c/p>\n\u003cp>Noncommercial farms, on the other hand, tend to focus more on education.\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>“Those projects are things like community gardens, school gardens and teaching farms,” Zigas said. “In the Bay Area and most of the country, those are the most common forms of urban farming.”\u003c/p>\n\u003cp>Nonprofit farms are incredibly important to urban communities, said Zigas, because they help people connect with the land and learn about ecology, seasons and how to grow their own food. Even the U.S. Department of Agriculture has an advisory committee and various grant opportunities targeted specifically at urban farms.\u003c/p>\n\u003cp>While not all urban farms fall squarely into these two categories, Zigas said it’s a helpful framework for understanding how they survive here.\u003c/p>\n\u003cp>To understand it even better, we visited some farms.\u003c/p>\n\u003ch2>‘A skill for life’\u003c/h2>\n\u003cp>At Valley Verde, a nonprofit farm in downtown San José, the mission is simple.\u003c/p>\n\u003cp>“We want people to learn how to grow their own food,” said Lovepreet Kaur, the farm’s executive director. “We want to teach them a skill for life. We don’t want to just provide a vegetable and say, ‘OK, here you go,’ and that’s it.”\u003c/p>\n\u003cp>Valley Verde was founded in 2012 and currently offers a handful of educational gardening programs specifically for lower-income community members in San José. For example, their Shared Garden program provides participants with the tools and know-how for gardening at home, including a class and materials such as raised beds, soil and seedlings.\u003c/p>\n\u003cfigure id=\"attachment_11943648\" class=\"wp-caption aligncenter\" style=\"max-width: 1920px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11943648\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2023/03/RS63252_008_KQED_ValleyVerdeFarmSJ_02282023-qut.jpg\" alt=\"A raised garden bed with several small green plants growing. A small greenhouse is in the background.\" width=\"1920\" height=\"1280\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS63252_008_KQED_ValleyVerdeFarmSJ_02282023-qut.jpg 1920w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS63252_008_KQED_ValleyVerdeFarmSJ_02282023-qut-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS63252_008_KQED_ValleyVerdeFarmSJ_02282023-qut-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS63252_008_KQED_ValleyVerdeFarmSJ_02282023-qut-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS63252_008_KQED_ValleyVerdeFarmSJ_02282023-qut-1536x1024.jpg 1536w\" sizes=\"(max-width: 1920px) 100vw, 1920px\">\u003cfigcaption class=\"wp-caption-text\">Native pollinator plants grow at Valley Verde. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>Those skills can help alleviate food insecurity — a significant issue in Silicon Valley.\u003c/p>\n\u003cp>The farm also grows food that is culturally relevant to its participants, including okra, bitter melon and Thai chili peppers. That’s important to Kaur, who immigrated to the U.S. from India when she was 11 years old.\u003c/p>\n\u003cp>“When I came here to the U.S., there were a lot of vegetables that I grew up eating that were no longer accessible to me,” she said. “I didn’t see them at any stores, or if you did, they were very, very expensive.”\u003c/p>\n\u003cfigure id=\"attachment_11943650\" class=\"wp-caption aligncenter\" style=\"max-width: 1920px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"wp-image-11943650 size-full\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2023/03/RS63248_010_KQED_ValleyVerdeFarmSJ_02282023-qut.jpg\" alt=\"A bespectacled Indian woman with her head completely covered in a black scarf knotted at the nape of her neck, bends over and holds the tip of a leaf of a purple and green plant, growing in a raised bed, between her first finger and thumb. \" width=\"1920\" height=\"1280\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS63248_010_KQED_ValleyVerdeFarmSJ_02282023-qut.jpg 1920w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS63248_010_KQED_ValleyVerdeFarmSJ_02282023-qut-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS63248_010_KQED_ValleyVerdeFarmSJ_02282023-qut-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS63248_010_KQED_ValleyVerdeFarmSJ_02282023-qut-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS63248_010_KQED_ValleyVerdeFarmSJ_02282023-qut-1536x1024.jpg 1536w\" sizes=\"(max-width: 1920px) 100vw, 1920px\">\u003cfigcaption class=\"wp-caption-text\">Lovepreet Kaur looks at a Japanese red mustard plant at Valley Verde. The farm is intentional about growing plants that are culturally relevant to community members and may be hard to find. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>But running these programs for free isn’t easy. Like most nonprofits, Valley Verde survives on grants, including from the Health Trust and the Lucile Packard Foundation. But according to Kaur, the biggest challenge is accessing land.\u003c/p>\n\u003cp>“We want to stay either downtown or on the east side,” said Kaur. “Wherever we serve the community, we want to be in our community. We don’t want to be far away from them.”\u003c/p>\n\u003cp>There’s plenty of land available in more rural areas or in the hills surrounding Silicon Valley, but Kaur said they need to be accessible to their program participants to maintain their mission.\u003c/p>\n\u003cp>Valley Verde has moved multiple times over the last few years. Right now, they’re leasing their lot from Google, which is charging them only $1 per month. But with only two years left on that lease, Kaur’s already starting to think about what comes next. She hopes the next move will be permanent.\u003c/p>\n\u003cp>“It is extremely stressful to be moving from one place to another, especially when you have plants. There’s a high mortality every time we try to move the plants while they’re still in their growing stages,” she said.\u003c/p>\n\u003cfigure id=\"attachment_11943651\" class=\"wp-caption aligncenter\" style=\"max-width: 1920px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"wp-image-11943651 size-full\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2023/03/RS63243_004_KQED_ValleyVerdeFarmSJ_02282023-qut.jpg\" alt=\"A bespectacled Indian woman with her head completely covered in a black scarf knotted at the nape of her neck touches soil in a small container with a just-sprouted plant. \" width=\"1920\" height=\"1280\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS63243_004_KQED_ValleyVerdeFarmSJ_02282023-qut.jpg 1920w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS63243_004_KQED_ValleyVerdeFarmSJ_02282023-qut-800x533.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS63243_004_KQED_ValleyVerdeFarmSJ_02282023-qut-1020x680.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS63243_004_KQED_ValleyVerdeFarmSJ_02282023-qut-160x107.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/RS63243_004_KQED_ValleyVerdeFarmSJ_02282023-qut-1536x1024.jpg 1536w\" sizes=\"(max-width: 1920px) 100vw, 1920px\">\u003cfigcaption class=\"wp-caption-text\">Kaur checks on seedlings in a greenhouse at Valley Verde. She says moving plants to a new location is a tricky process, and not all plants survive. \u003ccite>(Beth LaBerge/KQED)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003ch2>Farming in the sky\u003c/h2>\n\u003cp>As opposed to nonprofit farms like Valley Verde, commercial operations in the Bay Area are harder to come by, which makes Bluma Farm, a commercial flower farm based in Berkeley, a rarity. In fact, founder and owner Joanna Letz doesn’t know anyone else in the Bay Area operating a for-profit farm in such an urban environment.\u003c/p>\n\u003cp>Bluma’s situation is unique; the farm is spread across 15 modular apartment rooftops near downtown Berkeley and boasts a spectacular 360-degree view stretching from the Berkeley hills to downtown San Francisco.\u003c/p>\n\u003cp>Letz started growing flowers here in 2019, just a couple years after the building was built. She grows all kinds of flowers: godetia, nigella, violas, larkspur. The farm looks like a mosaic of raised beds in the sky, punctuated with a rainbow of flowers.\u003c/p>\n\u003cfigure id=\"attachment_11943660\" class=\"wp-caption aligncenter\" style=\"max-width: 1980px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-11943660\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2023/03/nicola-parisi_kitchen-table-advisors_bluma-farm_1406.jpg\" alt=\"A woman walking through a rooftop garden, holding a gathering of flowers, with apartments and a mountain in the distance. \" width=\"1980\" height=\"1238\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/nicola-parisi_kitchen-table-advisors_bluma-farm_1406.jpg 1980w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/nicola-parisi_kitchen-table-advisors_bluma-farm_1406-800x500.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/nicola-parisi_kitchen-table-advisors_bluma-farm_1406-1020x638.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/nicola-parisi_kitchen-table-advisors_bluma-farm_1406-160x100.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/nicola-parisi_kitchen-table-advisors_bluma-farm_1406-1536x960.jpg 1536w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/nicola-parisi_kitchen-table-advisors_bluma-farm_1406-1920x1200.jpg 1920w\" sizes=\"(max-width: 1980px) 100vw, 1980px\">\u003cfigcaption class=\"wp-caption-text\">Bluma Farm founder and owner Joanna Letz runs her business on 15 modular apartment rooftops. \u003ccite>(Courtesy of Nicola Parisi)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>At first, Letz said it was hard transitioning from farming on the ground to the roof. But now that she’s more used to it, she sees “all the really important benefits of farming on a roof and also just the ability to be growing in the city and showing other people what’s possible.”\u003c/p>\n\u003cp>As a for-profit business, Bluma has various revenue streams. About half their income comes from weddings, though that changed somewhat during the pandemic, said Letz. She sells some flowers wholesale and some retail, and she has a flower-subscription service.\u003c/p>\n\u003cp>“Cut flowers are higher profit per square foot than just about any other crop I can think of,” she said.\u003c/p>\n\u003cp>Still, it’s hard to make it work financially — especially in such a high-priced area.\u003c/p>\n\u003cp>“I try to keep my prices as high as I can because I want myself and my employees to be able to make enough money to live here,” she said. “And that’s still hard.”\u003c/p>\n\u003cfigure id=\"attachment_11943663\" class=\"wp-caption alignright\" style=\"max-width: 640px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"wp-image-11943663 size-large\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2023/03/nicola-parisi_kitchen-table-advisors_bluma-farm_1146-1020x1428.jpg\" alt=\"A smiling white woman with long brown hair in a bun, a white-and-gray striped sweater, a tool belt, and brown boots pulls back some opaque plastic to reveal seedlings underneath.\" width=\"640\" height=\"896\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/nicola-parisi_kitchen-table-advisors_bluma-farm_1146-1020x1428.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/nicola-parisi_kitchen-table-advisors_bluma-farm_1146-800x1120.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/nicola-parisi_kitchen-table-advisors_bluma-farm_1146-160x224.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/nicola-parisi_kitchen-table-advisors_bluma-farm_1146-1097x1536.jpg 1097w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/nicola-parisi_kitchen-table-advisors_bluma-farm_1146.jpg 1414w\" sizes=\"(max-width: 640px) 100vw, 640px\">\u003cfigcaption class=\"wp-caption-text\">Letz says flowers earn a high return per square foot. \u003ccite>(Courtesy of Nicola Parisi)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>But it’s important to her to stay in the city, where she hopes more rooftop farms will start to emerge.\u003c/p>\n\u003cp>“There’s a lot of buildings that have gone up just in the time that I’ve been farming here,” she said, pointing to some buildings in the distance that don’t have rooftop farms. “What could we be doing with them that we’re not?”\u003c/p>\n\u003cp>Letz said she’s especially passionate about teaching youth about farming and the power of growing your own produce. She currently works with a handful of interns from local high schools.\u003c/p>\n\u003cp>“That makes me excited … that we can get people up here and experience this,” she said.\u003c/p>\n\u003cp>That’s why, despite the challenges, we should be fighting to keep urban farms here in the Bay Area, said SPUR’s Zigas.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>“[It’s] not about the number of people we can feed, but the number of people we can reach or touch through education and awareness,” he said. “And for that reason we should try and have more spaces where people can learn about food and how it’s grown.”\u003c/p>\n\n\u003c/div>\u003c/p>",
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"content": "\u003cp>As federal officials scramble to figure out more details about the \u003ca href=\"https://www.pbs.org/newshour/economy/why-silicon-valley-bank-and-signature-bank-failed-so-fast\">sudden failure of Silicon Valley Bank (SVB)\u003c/a> last week, some lawmakers in Sacramento are calling for the state to launch its own investigation.\u003c/p>\n\u003cp>Assemblymember Timothy Grayson (D-Concord), who heads up his chamber’s Banking and Finance Committee, said that after the federal government releases its report on SVB on May 1, he wants the Legislature to start asking questions.\u003c/p>\n\u003cp>“We will gather the facts and wait for investigation, reports and analysis to come out. But there will be oversight hearings,” Grayson told KQED this week. He added that he wants to see whether California’s oversight of SVB, a state-chartered bank, fell short.\u003c/p>\n\u003cp>“There will be informational hearings, and we will dive deep into the information that is provided for us through investigations so that we can make sure that we do everything we can to identify those gaps and then fill them on a state level,” he said.\u003c/p>\n\u003cp>Grayson spent the weekend on the phone with fellow lawmakers, including fellow Assemblymember Rebecca Bauer-Kahan (D-San Ramon), who also serves on the banking committee.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>“We need to ensure we’re doing everything we can to protect Californians and their livelihoods and their ability to pay rent and keep food on the table,” Bauer-Kahan said. “So we will be looking long and hard at what authority we have to protect Californians.”\u003c/p>\n\u003cp>In the immediate wake of SVB’s failure, many Democrats blamed Republicans in Congress and former President Donald Trump, who both worked to weaken the landmark \u003ca href=\"https://www.cftc.gov/LawRegulation/DoddFrankAct/index.htm\">Dodd-Frank Act\u003c/a>, which mandated stricter oversight of the banking industry after the 2008–09 global financial crisis.\u003c/p>\n\u003cp>SVB and \u003ca href=\"https://www.cnbc.com/2023/03/13/signature-bank-third-biggest-bank-failure-in-us-history.html\">Signature Bank, which also failed last week\u003c/a>, were among the banks that successfully lobbied to have the law changed to essentially exempt themselves from stricter federal requirements and annual Federal Reserve “stress tests.”\u003c/p>\n\u003cp>“Silicon Valley Bank would have fallen within that more stringent regulatory review. But because of the lobbying of Silicon Valley Bank itself and others, it was rolled back in 2018,” said California Attorney General Rob Bonta.\u003c/p>\n\u003cp>Bonta noted that while federal regulators have most of the authority to regulate banks, California also holds some oversight power through state agencies like the \u003ca href=\"https://dfpi.ca.gov/\">Department of Financial Protection and Innovation\u003c/a> (DFPI), which first announced the bank’s closure on Friday.\u003c/p>\n\u003cp>“I think we need to ask the question about … the role of all relevant players,” Bonta said. “[How can we] accomplish what we all want to do, which is to protect everyday people, to avoid situations like this in the future? And who should have what role?”[aside label=\"related coverage\" tag=\"silicon-valley-bank\"]After Republicans succeeded in weakening Dodd-Frank and Trump pushed to undermine the Consumer Financial Protection Bureau, an oversight agency created by his predecessor, California moved to bolster its own consumer banking protections.\u003c/p>\n\u003cp>In 2020, with a push from Gov. Gavin Newsom, the Legislature passed \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201920200AB1864\">AB 1864\u003c/a>, which created the DFPI, with the goal to “improve accountability and transparency in the California financial system.”\u003c/p>\n\u003cp>The nascent agency’s powers included the ability to regulate financial institutions, especially state-chartered banks, as well as the authority to enforce consumer protection laws.\u003c/p>\n\u003cp>Kat Taylor, co-founder and board chair of Beneficial State Bank in Oakland, strongly supported the creation of the agency. She says its regulatory functions are critical because the financial sector is so influential.\u003c/p>\n\u003cp>“It’s a far bigger industry than any other industry, and it fuels all other industries,” Taylor said, noting that more state and federal oversight of the financial industry is needed. “So we don’t understand it at our peril. And it’s complicated.”\u003c/p>\n\u003cp>Despite repeated requests for interviews this week as the bank crisis continued unfolding, DFPI declined to grant an interview to KQED. Four days after the news broke, and 24 hours after they were first contacted, agency spokesperson Elizabeth Smith emailed a one-sentence statement: “We are actively investigating the situation and conducting a thorough review to ensure the Department is doing everything we can to protect Californians.”\u003c/p>\n\u003cp>State Sen. Monique Limón (D-Santa Barbara), who authored AB 1864 and now chairs the Senate Banking and Financial Institutions Committee, said she wasn’t faulting the DFPI for the bank’s collapse, but does have plenty of questions for the agency she helped create.\u003c/p>\n\u003cp>“It’s very fair for legislators to be asking a lot of questions about an agency and wanting to understand what happened,” she said.\u003c/p>\n\u003cp>“You know, I’ve started to write down some of the questions from other members who maybe don’t serve on banking and finance, who don’t have the same purview in terms of the subject-matter area, but who are impacted because they have constituents who are impacted.”\u003c/p>\n\u003cp>Limón promised transparency in the coming months as state lawmakers further investigate the bank’s failure.\u003c/p>\n\u003cp>“We also want to ensure that we are reviewing our own state laws [to determine] what laws allow for something like that to happen,” she added. “Sometimes the silence or absence of laws is what allows things to occur. And certainly we’re going to be looking at all of that.”\u003c/p>\n\u003cp>That sentiment was echoed by Assemblymember Grayson.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>“I think we have to face reality: There was a bank run, which means something didn’t go right,” Grayson said. “But we had a process to deal with that. And now we get to do a follow-up investigation and figure out how in the future do we prevent that kind of thing from happening again.”\u003c/p>\n\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>As federal officials scramble to figure out more details about the \u003ca href=\"https://www.pbs.org/newshour/economy/why-silicon-valley-bank-and-signature-bank-failed-so-fast\">sudden failure of Silicon Valley Bank (SVB)\u003c/a> last week, some lawmakers in Sacramento are calling for the state to launch its own investigation.\u003c/p>\n\u003cp>Assemblymember Timothy Grayson (D-Concord), who heads up his chamber’s Banking and Finance Committee, said that after the federal government releases its report on SVB on May 1, he wants the Legislature to start asking questions.\u003c/p>\n\u003cp>“We will gather the facts and wait for investigation, reports and analysis to come out. But there will be oversight hearings,” Grayson told KQED this week. He added that he wants to see whether California’s oversight of SVB, a state-chartered bank, fell short.\u003c/p>\n\u003cp>“There will be informational hearings, and we will dive deep into the information that is provided for us through investigations so that we can make sure that we do everything we can to identify those gaps and then fill them on a state level,” he said.\u003c/p>\n\u003cp>Grayson spent the weekend on the phone with fellow lawmakers, including fellow Assemblymember Rebecca Bauer-Kahan (D-San Ramon), who also serves on the banking committee.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>“We need to ensure we’re doing everything we can to protect Californians and their livelihoods and their ability to pay rent and keep food on the table,” Bauer-Kahan said. “So we will be looking long and hard at what authority we have to protect Californians.”\u003c/p>\n\u003cp>In the immediate wake of SVB’s failure, many Democrats blamed Republicans in Congress and former President Donald Trump, who both worked to weaken the landmark \u003ca href=\"https://www.cftc.gov/LawRegulation/DoddFrankAct/index.htm\">Dodd-Frank Act\u003c/a>, which mandated stricter oversight of the banking industry after the 2008–09 global financial crisis.\u003c/p>\n\u003cp>SVB and \u003ca href=\"https://www.cnbc.com/2023/03/13/signature-bank-third-biggest-bank-failure-in-us-history.html\">Signature Bank, which also failed last week\u003c/a>, were among the banks that successfully lobbied to have the law changed to essentially exempt themselves from stricter federal requirements and annual Federal Reserve “stress tests.”\u003c/p>\n\u003cp>“Silicon Valley Bank would have fallen within that more stringent regulatory review. But because of the lobbying of Silicon Valley Bank itself and others, it was rolled back in 2018,” said California Attorney General Rob Bonta.\u003c/p>\n\u003cp>Bonta noted that while federal regulators have most of the authority to regulate banks, California also holds some oversight power through state agencies like the \u003ca href=\"https://dfpi.ca.gov/\">Department of Financial Protection and Innovation\u003c/a> (DFPI), which first announced the bank’s closure on Friday.\u003c/p>\n\u003cp>“I think we need to ask the question about … the role of all relevant players,” Bonta said. “[How can we] accomplish what we all want to do, which is to protect everyday people, to avoid situations like this in the future? And who should have what role?”\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>After Republicans succeeded in weakening Dodd-Frank and Trump pushed to undermine the Consumer Financial Protection Bureau, an oversight agency created by his predecessor, California moved to bolster its own consumer banking protections.\u003c/p>\n\u003cp>In 2020, with a push from Gov. Gavin Newsom, the Legislature passed \u003ca href=\"https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201920200AB1864\">AB 1864\u003c/a>, which created the DFPI, with the goal to “improve accountability and transparency in the California financial system.”\u003c/p>\n\u003cp>The nascent agency’s powers included the ability to regulate financial institutions, especially state-chartered banks, as well as the authority to enforce consumer protection laws.\u003c/p>\n\u003cp>Kat Taylor, co-founder and board chair of Beneficial State Bank in Oakland, strongly supported the creation of the agency. She says its regulatory functions are critical because the financial sector is so influential.\u003c/p>\n\u003cp>“It’s a far bigger industry than any other industry, and it fuels all other industries,” Taylor said, noting that more state and federal oversight of the financial industry is needed. “So we don’t understand it at our peril. And it’s complicated.”\u003c/p>\n\u003cp>Despite repeated requests for interviews this week as the bank crisis continued unfolding, DFPI declined to grant an interview to KQED. Four days after the news broke, and 24 hours after they were first contacted, agency spokesperson Elizabeth Smith emailed a one-sentence statement: “We are actively investigating the situation and conducting a thorough review to ensure the Department is doing everything we can to protect Californians.”\u003c/p>\n\u003cp>State Sen. Monique Limón (D-Santa Barbara), who authored AB 1864 and now chairs the Senate Banking and Financial Institutions Committee, said she wasn’t faulting the DFPI for the bank’s collapse, but does have plenty of questions for the agency she helped create.\u003c/p>\n\u003cp>“It’s very fair for legislators to be asking a lot of questions about an agency and wanting to understand what happened,” she said.\u003c/p>\n\u003cp>“You know, I’ve started to write down some of the questions from other members who maybe don’t serve on banking and finance, who don’t have the same purview in terms of the subject-matter area, but who are impacted because they have constituents who are impacted.”\u003c/p>\n\u003cp>Limón promised transparency in the coming months as state lawmakers further investigate the bank’s failure.\u003c/p>\n\u003cp>“We also want to ensure that we are reviewing our own state laws [to determine] what laws allow for something like that to happen,” she added. “Sometimes the silence or absence of laws is what allows things to occur. And certainly we’re going to be looking at all of that.”\u003c/p>\n\u003cp>That sentiment was echoed by Assemblymember Grayson.\u003c/p>\n\u003cp>\u003c/p>\n\u003cp>“I think we have to face reality: There was a bank run, which means something didn’t go right,” Grayson said. “But we had a process to deal with that. And now we get to do a follow-up investigation and figure out how in the future do we prevent that kind of thing from happening again.”\u003c/p>\n\n\u003c/div>\u003c/p>",
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"title": "Second Bank Fails After Silicon Valley Bank, While Clients Get Federal Reassurances",
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"content": "\u003cp>The U.S. government took extraordinary steps Sunday to stop a potential banking crisis after the historic failure of Silicon Valley Bank — the second-largest bank failure in history — assuring all depositors at the failed institution that they could access all their money quickly, even as another major bank was shut down.\u003c/p>\n\u003cp>The announcement came amid fears that the factors that caused the \u003ca href=\"https://www.svb.com/\">bank\u003c/a> to fail could spread. Regulators had worked all weekend to try to find a buyer for the bank; those efforts appeared to have failed Sunday.\u003c/p>\n\u003cp>In a sign of how fast the financial bleeding was occurring, regulators announced that New York-based Signature Bank had also failed and was being seized on Sunday. The failure of Signature Bank, which had more than $110 billion in assets, is the third-largest in U.S. history.\u003c/p>\n\u003cp>In an effort to shore up confidence in the banking system, the Treasury Department, Federal Reserve and Federal Deposit Insurance Corporation (FDIC) said Sunday that all Silicon Valley Bank clients would be protected and able to access their money. They also announced steps that are intended to protect the bank’s customers and prevent additional bank runs.\u003c/p>\n\u003cp>“This step will ensure that the U.S. banking system continues to perform its vital roles of protecting deposits and providing access to credit to households and businesses in a manner that promotes strong and sustainable economic growth,” the agencies said in a joint statement.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>Under the plan, depositors at Silicon Valley Bank and Signature Bank, including those whose holdings exceed the protected $250,000 insurance limit, will be able to access their money on Monday.\u003c/p>\n\u003cp>Also Sunday, another beleaguered bank, First Republic Bank, announced that it had bolstered its financial health by gaining access to funding from the Fed and JPMorgan Chase.\u003c/p>\n\u003cp>In a separate announcement, the Fed late Sunday announced an expansive emergency lending program that’s intended to prevent a wave of bank runs that would threaten the stability of the banking system and the economy as a whole. Fed officials characterized the program as akin to what central banks have done for decades: Lend freely to the banking system so that customers will be confident they can access their accounts whenever needed.\u003c/p>\n\u003cp>The lending facility will allow banks that need to raise cash to pay depositors to borrow that money from the Fed, rather than having to sell bonds and other securities to raise the money. Silicon Valley Bank had been forced to dump some of its bonds at a loss to fund its customers’ withdrawals. Under the Fed’s new program, banks can post those securities as collateral and borrow from the emergency facility.\u003c/p>\n\u003cp>The Treasury has set aside $25 billion to offset any losses incurred under the Fed’s emergency lending facility. Fed officials said, however, that they do not expect to have to use any of that money, given that the securities posted as collateral have a very low risk of default.\u003c/p>\n\u003cp>Analysts said the Fed’s program should be enough to calm financial markets on Monday.\u003c/p>\n\u003cp>“Monday will surely be a stressful day for many in the regional banking sector, but today’s action dramatically reduces the risk of further contagion,” economists at Jefferies, an investment bank, said in a research note.\u003c/p>\n\u003cp>Though Sunday’s steps marked the most extensive government intervention in the banking system since the 2008 financial crisis, its actions are relatively limited compared with what was done 15 years ago. The two failed banks themselves have not been rescued, and taxpayer money has not been provided to the banks.\u003c/p>\n\u003cp>President Joe Biden said Sunday evening as he boarded Air Force One to Washington that he would speak about the bank situation on Monday. In a statement, Biden also said he was “firmly committed to holding those responsible for this mess fully accountable and to continuing our efforts to strengthen oversight and regulation of larger banks so that we are not in this position again.”\u003c/p>\n\u003cp>Regulators had to rush to close Silicon Valley Bank, a financial institution with more than $200 billion in assets, on Friday when it experienced a traditional run on the bank where depositors rushed to withdraw their funds all at once. It is the second-largest bank failure in U.S. history, behind only the 2008 failure of Washington Mutual.\u003c/p>\n\u003cp>Some prominent Silicon Valley executives feared that if the federal government didn’t rescue the failed bank, \u003ca href=\"https://apnews.com/article/silicon-valley-bank-janet-yellen-bailout-fdic-fail-failed-c224cf4d2ef07c70cd27e7d0d3be628b\">customers would make runs on other financial institutions\u003c/a> in the coming days. Stock prices plunged over the last few days at other banks that cater to technology companies, including First Republic Bank and PacWest Bank.\u003c/p>\n\u003cp>Among the bank’s customers are a range of companies, from the local wine industry and technology start-ups devoted to combating climate change. Sunrun, which sells and leases solar energy systems, had less than $80 million of cash deposits with Silicon Valley. Stitch Fix, the clothing retail website, disclosed recently that it had a credit line of up to $100 million with Silicon Valley Bank and other lenders.\u003c/p>\n\u003cp>Tiffany Dufu, founder and CEO of The Cru, a New York-based career coaching platform and community for women, posted a video Sunday on LinkedIn from an airport bathroom, saying the bank crisis was \u003ca href=\"https://www.linkedin.com/feed/update/urn:li:activity:7040727755319037952/\">testing her resiliency\u003c/a>. Given that her money was tied up at Silicon Valley Bank, she had to pay her employees out of her personal bank account. With two teenagers to support who will be heading to college, she said she was relieved to hear that the government’s intent is to make depositors whole.\u003c/p>\n\u003cp>“Small businesses and early stage start-ups don’t have a lot of access to leverage in a situation like this, and we’re often in a very vulnerable position, particularly when we have to fight so hard to get the wires into your bank account to begin with, particularly for me, as a Black female founder,” Dufu told The Associated Press.\u003c/p>\n\u003cp>Silicon Valley Bank began its slide into insolvency when its customers, largely technology companies that needed cash as they struggled to get financing, started withdrawing their deposits. The bank had to sell bonds at a loss to cover the withdrawals, leading to the largest failure of a U.S. financial institution since the height of the financial crisis.\u003c/p>\n\u003cp>Treasury Secretary Janet Yellen pointed to rising interest rates, which have been \u003ca href=\"https://apnews.com/article/inflation-federal-reserve-interest-rates-powell-unemployment-79b7ead4530ab381a17638a6c9df2d90\">increased by the Federal Reserve\u003c/a> to combat inflation, as the core problem for Silicon Valley Bank. Many of its assets, such as bonds or mortgage-backed securities, lost market value as rates climbed.\u003c/p>\n\u003cp>Sheila Bair, who was chair of the FDIC during the 2008 financial crisis, recalled that with nearly all the bank failures then, “we sold a failed bank to a healthy bank. And usually, the healthy acquirer would also cover the uninsured because they wanted the franchise value of those large depositors, so optimally, that’s the best outcome.”\u003c/p>\n\u003cp>[ad floatright]\u003c/p>\n\u003cp>But with Silicon Valley Bank, she told NBC’s \u003cem>Meet the Press\u003c/em>, “this was a liquidity failure, it was a bank run, so they didn’t have time to prepare to market the bank. So they’re having to do that now, and playing catchup.”\u003c/p>\n\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>The U.S. government took extraordinary steps Sunday to stop a potential banking crisis after the historic failure of Silicon Valley Bank — the second-largest bank failure in history — assuring all depositors at the failed institution that they could access all their money quickly, even as another major bank was shut down.\u003c/p>\n\u003cp>The announcement came amid fears that the factors that caused the \u003ca href=\"https://www.svb.com/\">bank\u003c/a> to fail could spread. Regulators had worked all weekend to try to find a buyer for the bank; those efforts appeared to have failed Sunday.\u003c/p>\n\u003cp>In a sign of how fast the financial bleeding was occurring, regulators announced that New York-based Signature Bank had also failed and was being seized on Sunday. The failure of Signature Bank, which had more than $110 billion in assets, is the third-largest in U.S. history.\u003c/p>\n\u003cp>In an effort to shore up confidence in the banking system, the Treasury Department, Federal Reserve and Federal Deposit Insurance Corporation (FDIC) said Sunday that all Silicon Valley Bank clients would be protected and able to access their money. They also announced steps that are intended to protect the bank’s customers and prevent additional bank runs.\u003c/p>\n\u003cp>“This step will ensure that the U.S. banking system continues to perform its vital roles of protecting deposits and providing access to credit to households and businesses in a manner that promotes strong and sustainable economic growth,” the agencies said in a joint statement.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>Under the plan, depositors at Silicon Valley Bank and Signature Bank, including those whose holdings exceed the protected $250,000 insurance limit, will be able to access their money on Monday.\u003c/p>\n\u003cp>Also Sunday, another beleaguered bank, First Republic Bank, announced that it had bolstered its financial health by gaining access to funding from the Fed and JPMorgan Chase.\u003c/p>\n\u003cp>In a separate announcement, the Fed late Sunday announced an expansive emergency lending program that’s intended to prevent a wave of bank runs that would threaten the stability of the banking system and the economy as a whole. Fed officials characterized the program as akin to what central banks have done for decades: Lend freely to the banking system so that customers will be confident they can access their accounts whenever needed.\u003c/p>\n\u003cp>The lending facility will allow banks that need to raise cash to pay depositors to borrow that money from the Fed, rather than having to sell bonds and other securities to raise the money. Silicon Valley Bank had been forced to dump some of its bonds at a loss to fund its customers’ withdrawals. Under the Fed’s new program, banks can post those securities as collateral and borrow from the emergency facility.\u003c/p>\n\u003cp>The Treasury has set aside $25 billion to offset any losses incurred under the Fed’s emergency lending facility. Fed officials said, however, that they do not expect to have to use any of that money, given that the securities posted as collateral have a very low risk of default.\u003c/p>\n\u003cp>Analysts said the Fed’s program should be enough to calm financial markets on Monday.\u003c/p>\n\u003cp>“Monday will surely be a stressful day for many in the regional banking sector, but today’s action dramatically reduces the risk of further contagion,” economists at Jefferies, an investment bank, said in a research note.\u003c/p>\n\u003cp>Though Sunday’s steps marked the most extensive government intervention in the banking system since the 2008 financial crisis, its actions are relatively limited compared with what was done 15 years ago. The two failed banks themselves have not been rescued, and taxpayer money has not been provided to the banks.\u003c/p>\n\u003cp>President Joe Biden said Sunday evening as he boarded Air Force One to Washington that he would speak about the bank situation on Monday. In a statement, Biden also said he was “firmly committed to holding those responsible for this mess fully accountable and to continuing our efforts to strengthen oversight and regulation of larger banks so that we are not in this position again.”\u003c/p>\n\u003cp>Regulators had to rush to close Silicon Valley Bank, a financial institution with more than $200 billion in assets, on Friday when it experienced a traditional run on the bank where depositors rushed to withdraw their funds all at once. It is the second-largest bank failure in U.S. history, behind only the 2008 failure of Washington Mutual.\u003c/p>\n\u003cp>Some prominent Silicon Valley executives feared that if the federal government didn’t rescue the failed bank, \u003ca href=\"https://apnews.com/article/silicon-valley-bank-janet-yellen-bailout-fdic-fail-failed-c224cf4d2ef07c70cd27e7d0d3be628b\">customers would make runs on other financial institutions\u003c/a> in the coming days. Stock prices plunged over the last few days at other banks that cater to technology companies, including First Republic Bank and PacWest Bank.\u003c/p>\n\u003cp>Among the bank’s customers are a range of companies, from the local wine industry and technology start-ups devoted to combating climate change. Sunrun, which sells and leases solar energy systems, had less than $80 million of cash deposits with Silicon Valley. Stitch Fix, the clothing retail website, disclosed recently that it had a credit line of up to $100 million with Silicon Valley Bank and other lenders.\u003c/p>\n\u003cp>Tiffany Dufu, founder and CEO of The Cru, a New York-based career coaching platform and community for women, posted a video Sunday on LinkedIn from an airport bathroom, saying the bank crisis was \u003ca href=\"https://www.linkedin.com/feed/update/urn:li:activity:7040727755319037952/\">testing her resiliency\u003c/a>. Given that her money was tied up at Silicon Valley Bank, she had to pay her employees out of her personal bank account. With two teenagers to support who will be heading to college, she said she was relieved to hear that the government’s intent is to make depositors whole.\u003c/p>\n\u003cp>“Small businesses and early stage start-ups don’t have a lot of access to leverage in a situation like this, and we’re often in a very vulnerable position, particularly when we have to fight so hard to get the wires into your bank account to begin with, particularly for me, as a Black female founder,” Dufu told The Associated Press.\u003c/p>\n\u003cp>Silicon Valley Bank began its slide into insolvency when its customers, largely technology companies that needed cash as they struggled to get financing, started withdrawing their deposits. The bank had to sell bonds at a loss to cover the withdrawals, leading to the largest failure of a U.S. financial institution since the height of the financial crisis.\u003c/p>\n\u003cp>Treasury Secretary Janet Yellen pointed to rising interest rates, which have been \u003ca href=\"https://apnews.com/article/inflation-federal-reserve-interest-rates-powell-unemployment-79b7ead4530ab381a17638a6c9df2d90\">increased by the Federal Reserve\u003c/a> to combat inflation, as the core problem for Silicon Valley Bank. Many of its assets, such as bonds or mortgage-backed securities, lost market value as rates climbed.\u003c/p>\n\u003cp>Sheila Bair, who was chair of the FDIC during the 2008 financial crisis, recalled that with nearly all the bank failures then, “we sold a failed bank to a healthy bank. And usually, the healthy acquirer would also cover the uninsured because they wanted the franchise value of those large depositors, so optimally, that’s the best outcome.”\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>But with Silicon Valley Bank, she told NBC’s \u003cem>Meet the Press\u003c/em>, “this was a liquidity failure, it was a bank run, so they didn’t have time to prepare to market the bank. So they’re having to do that now, and playing catchup.”\u003c/p>\n\n\u003c/div>\u003c/p>",
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"slug": "us-seizes-silicon-valley-bank-as-stocks-tumble-depositors-scramble-to-withdraw-funds",
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"content": "\u003cp>The U.S. rushed to seize the assets of Silicon Valley Bank on Friday after it experienced a run on the bank, the second biggest bank failure in history after \u003ca href=\"https://apnews.com/article/08aeb5a6c9d542ccb6d6154d4fa1e3a6\">Washington Mutual\u003c/a> during the height of the financial crisis more than a decade ago.\u003c/p>\n\u003cp>Silicon Valley, the nation’s 16th-largest bank, failed after depositors — mostly technology workers and venture capital-backed companies — hurried to withdraw money this week as anxiety over the bank’s balance sheet spread.\u003c/p>\n\u003cp>Silicon Valley was \u003ca href=\"https://apnews.com/article/technology-amazoncom-inc-europe-software-business-b23cd72310f20ce2320a36eadc26eded\">heavily exposed to the tech industry\u003c/a>, and there is little chance of contagion in the banking sector similar to the chaos in the months leading up to the Great Recession more than a decade ago. The biggest banks — those most likely to cause a systemic economic issue — have healthy balance sheets and plenty of capital.\u003c/p>\n\u003cp>In 2007, the biggest financial crisis since the Great Depression rippled across the globe after mortgage-backed securities tied to ill-advised housing loans rippled from the U.S. to Asia and Europe. The panic on Wall Street led to the collapse of the storied Lehman Brothers, founded in 1847. Because major banks had extensive exposure to one another, it led to cascading disruption throughout the global financial system, putting millions out of work.\u003c/p>\n\u003cfigure id=\"attachment_11943242\" class=\"wp-caption alignnone\" style=\"max-width: 800px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-11943242\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2023/03/GettyImages-1472604869-800x548.jpg\" alt='A small crowd of people is seen reflected from the window of SVBN headquarters, with the word \"SVB\" on the window in the foreground. Behind the crowd is a carpark on a grey and cloudy day.' width=\"800\" height=\"548\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/GettyImages-1472604869-800x548.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/GettyImages-1472604869-1020x699.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/GettyImages-1472604869-160x110.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/GettyImages-1472604869.jpg 1024w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">People line up outside the shuttered Silicon Valley Bank headquarters on March 10, 2023, in Santa Clara. \u003ccite>(Justin Sullivan/Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>However, there has been unease in the banking sector all week, and the collapse of Silicon Valley pushed shares of almost all financial institutions lower Friday, when they’d already tumbled by double digits since Monday.\u003c/p>\n\u003cp>Silicon Valley Bank’s failure arrived with incredible speed, with some industry analysts on Friday suggesting it was a good company and still likely a wise investment. SVB executives were trying to raise capital early Friday and find additional investors. However, trading in the bank’s shares was halted before the opening bell due to extreme volatility.\u003c/p>\n\u003cp>Shortly before noon Eastern Time, the Federal Deposit Insurance Corporation moved to shutter the bank. Notably, the FDIC did not wait until the close of business to seize the bank, as is typical in an orderly winding down of a financial institution. The FDIC could not immediately find a buyer for the bank’s assets, signaling how fast depositors had cashed out. The bank’s remaining uninsured deposits will now be locked up in receivership.[pullquote align=\"right\" size=\"medium\" citation=\"Ashley Tyrner, CEO, FarmboxRx\"]‘One friend said they couldn’t make payroll today and cried when they had to inform 200 employees because of this issue.’[/pullquote]The bank had $209 billion in total assets at the time of failure, the FDIC said. It was unclear how much of its deposits were above the $250,000 insurance limit at the moment, but previous regulatory reports showed that much of Silicon Valley Bank’s deposits exceeded that limit.\u003c/p>\n\u003cp>The FDIC said Friday that deposits below the $250,000 limit would be available Monday morning.\u003c/p>\n\u003cp>Silicon Valley Bank still appeared stable this year, but on Thursday it announced plans to raise up to $1.75 billion to strengthen its capital position. That sent investors scurrying and shares plunging 60%. They rocketed lower again Friday before the opening of the Nasdaq, where it is traded.\u003c/p>\n\u003cp>As its name implied, Silicon Valley Bank was a major financial conduit among the technology sector, its founders and start-ups as well as its workers. Hundreds of companies held their operating capital with the bank, and it was seen as good business sense to develop a relationship with Silicon Valley Bank if a founder wanted to find new investors or go public.\u003c/p>\n\u003cp>“We saw building a relationship with Silicon Valley Bank as a logical step, given their reach,” said Ashley Tyrner, CEO of FarmboxRx, a company that delivers food as medicine to Medicaid and Medicare recipients. While Tyrner has money in other banks and can make payroll, she said a good portion of her business’s profits are now locked up with the bank.\u003c/p>\n\u003cp>But Silicon Valley’s connections to the tech sector became a liability rapidly. Technology stocks have been \u003ca href=\"https://apnews.com/article/technology-amazoncom-inc-europe-software-business-b23cd72310f20ce2320a36eadc26eded\">hit hard in the past 18 months\u003c/a> after a growth surge during the pandemic and layoffs throughout the industry.\u003c/p>\n\u003cfigure id=\"attachment_11943252\" class=\"wp-caption alignright\" style=\"max-width: 800px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-11943252\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2023/03/GettyImages-1247999987-800x532.jpg\" alt=\"A white notice is taped to the glass door of SVB headquarters.\" width=\"800\" height=\"532\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/GettyImages-1247999987-800x532.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/GettyImages-1247999987-1020x678.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/GettyImages-1247999987-160x106.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/GettyImages-1247999987.jpg 1024w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">A notice of Silicon Valley Bank’s closure hangs at the bank’s headquarters in Santa Clara on March 10, 2023. \u003ccite>(Noah Berger/AFP via Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>At the same time, the bank was hit hard by the \u003ca href=\"https://apnews.com/article/inflation-federal-reserve-interest-rates-powell-unemployment-79b7ead4530ab381a17638a6c9df2d90\">Federal Reserve’s fight against inflation\u003c/a> and an aggressive series of interest rate hikes to cool the economy.\u003c/p>\n\u003cp>As the Fed raises its benchmark interest rate, the value of bonds, typically a stable asset, start to fall. That is not typically a problem, as the declines lead to “unrealized losses,” or losses that are not counted against banks when calculating the capital cushion they can use should there be a downturn in the future.\u003c/p>\n\u003cp>However, when depositors grow anxious and begin withdrawing their money, banks sometimes have to sell those bonds before they mature to cover that exodus.\u003c/p>\n\u003cp>That is exactly what happened to Silicon Valley Bank, which had to sell $21 billion in highly liquid assets to cover the exodus of deposits. It took a $1.8 billion loss on that sale.\u003c/p>\n\u003cp>Tyrner said she’s spoken to several friends who are backed by venture capital. She described those friends as being “beside themselves” over the bank’s failure. Tyrner’s chief operating officer tried to withdraw her company’s funds on Thursday, but failed to do so in time.\u003c/p>\n\u003cp>“One friend said they couldn’t make payroll today and cried when they had to inform 200 employees because of this issue,” Tyrner said.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>The U.S. rushed to seize the assets of Silicon Valley Bank on Friday after it experienced a run on the bank, the second biggest bank failure in history after \u003ca href=\"https://apnews.com/article/08aeb5a6c9d542ccb6d6154d4fa1e3a6\">Washington Mutual\u003c/a> during the height of the financial crisis more than a decade ago.\u003c/p>\n\u003cp>Silicon Valley, the nation’s 16th-largest bank, failed after depositors — mostly technology workers and venture capital-backed companies — hurried to withdraw money this week as anxiety over the bank’s balance sheet spread.\u003c/p>\n\u003cp>Silicon Valley was \u003ca href=\"https://apnews.com/article/technology-amazoncom-inc-europe-software-business-b23cd72310f20ce2320a36eadc26eded\">heavily exposed to the tech industry\u003c/a>, and there is little chance of contagion in the banking sector similar to the chaos in the months leading up to the Great Recession more than a decade ago. The biggest banks — those most likely to cause a systemic economic issue — have healthy balance sheets and plenty of capital.\u003c/p>\n\u003cp>In 2007, the biggest financial crisis since the Great Depression rippled across the globe after mortgage-backed securities tied to ill-advised housing loans rippled from the U.S. to Asia and Europe. The panic on Wall Street led to the collapse of the storied Lehman Brothers, founded in 1847. Because major banks had extensive exposure to one another, it led to cascading disruption throughout the global financial system, putting millions out of work.\u003c/p>\n\u003cfigure id=\"attachment_11943242\" class=\"wp-caption alignnone\" style=\"max-width: 800px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-11943242\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2023/03/GettyImages-1472604869-800x548.jpg\" alt='A small crowd of people is seen reflected from the window of SVBN headquarters, with the word \"SVB\" on the window in the foreground. Behind the crowd is a carpark on a grey and cloudy day.' width=\"800\" height=\"548\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/GettyImages-1472604869-800x548.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/GettyImages-1472604869-1020x699.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/GettyImages-1472604869-160x110.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/GettyImages-1472604869.jpg 1024w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">People line up outside the shuttered Silicon Valley Bank headquarters on March 10, 2023, in Santa Clara. \u003ccite>(Justin Sullivan/Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>However, there has been unease in the banking sector all week, and the collapse of Silicon Valley pushed shares of almost all financial institutions lower Friday, when they’d already tumbled by double digits since Monday.\u003c/p>\n\u003cp>Silicon Valley Bank’s failure arrived with incredible speed, with some industry analysts on Friday suggesting it was a good company and still likely a wise investment. SVB executives were trying to raise capital early Friday and find additional investors. However, trading in the bank’s shares was halted before the opening bell due to extreme volatility.\u003c/p>\n\u003cp>Shortly before noon Eastern Time, the Federal Deposit Insurance Corporation moved to shutter the bank. Notably, the FDIC did not wait until the close of business to seize the bank, as is typical in an orderly winding down of a financial institution. The FDIC could not immediately find a buyer for the bank’s assets, signaling how fast depositors had cashed out. The bank’s remaining uninsured deposits will now be locked up in receivership.\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>The bank had $209 billion in total assets at the time of failure, the FDIC said. It was unclear how much of its deposits were above the $250,000 insurance limit at the moment, but previous regulatory reports showed that much of Silicon Valley Bank’s deposits exceeded that limit.\u003c/p>\n\u003cp>The FDIC said Friday that deposits below the $250,000 limit would be available Monday morning.\u003c/p>\n\u003cp>Silicon Valley Bank still appeared stable this year, but on Thursday it announced plans to raise up to $1.75 billion to strengthen its capital position. That sent investors scurrying and shares plunging 60%. They rocketed lower again Friday before the opening of the Nasdaq, where it is traded.\u003c/p>\n\u003cp>As its name implied, Silicon Valley Bank was a major financial conduit among the technology sector, its founders and start-ups as well as its workers. Hundreds of companies held their operating capital with the bank, and it was seen as good business sense to develop a relationship with Silicon Valley Bank if a founder wanted to find new investors or go public.\u003c/p>\n\u003cp>“We saw building a relationship with Silicon Valley Bank as a logical step, given their reach,” said Ashley Tyrner, CEO of FarmboxRx, a company that delivers food as medicine to Medicaid and Medicare recipients. While Tyrner has money in other banks and can make payroll, she said a good portion of her business’s profits are now locked up with the bank.\u003c/p>\n\u003cp>But Silicon Valley’s connections to the tech sector became a liability rapidly. Technology stocks have been \u003ca href=\"https://apnews.com/article/technology-amazoncom-inc-europe-software-business-b23cd72310f20ce2320a36eadc26eded\">hit hard in the past 18 months\u003c/a> after a growth surge during the pandemic and layoffs throughout the industry.\u003c/p>\n\u003cfigure id=\"attachment_11943252\" class=\"wp-caption alignright\" style=\"max-width: 800px\">\u003cimg loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-11943252\" src=\"https://ww2.kqed.org/app/uploads/sites/10/2023/03/GettyImages-1247999987-800x532.jpg\" alt=\"A white notice is taped to the glass door of SVB headquarters.\" width=\"800\" height=\"532\" srcset=\"https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/GettyImages-1247999987-800x532.jpg 800w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/GettyImages-1247999987-1020x678.jpg 1020w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/GettyImages-1247999987-160x106.jpg 160w, https://cdn.kqed.org/wp-content/uploads/sites/10/2023/03/GettyImages-1247999987.jpg 1024w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\">\u003cfigcaption class=\"wp-caption-text\">A notice of Silicon Valley Bank’s closure hangs at the bank’s headquarters in Santa Clara on March 10, 2023. \u003ccite>(Noah Berger/AFP via Getty Images)\u003c/cite>\u003c/figcaption>\u003c/figure>\n\u003cp>At the same time, the bank was hit hard by the \u003ca href=\"https://apnews.com/article/inflation-federal-reserve-interest-rates-powell-unemployment-79b7ead4530ab381a17638a6c9df2d90\">Federal Reserve’s fight against inflation\u003c/a> and an aggressive series of interest rate hikes to cool the economy.\u003c/p>\n\u003cp>As the Fed raises its benchmark interest rate, the value of bonds, typically a stable asset, start to fall. That is not typically a problem, as the declines lead to “unrealized losses,” or losses that are not counted against banks when calculating the capital cushion they can use should there be a downturn in the future.\u003c/p>\n\u003cp>However, when depositors grow anxious and begin withdrawing their money, banks sometimes have to sell those bonds before they mature to cover that exodus.\u003c/p>\n\u003cp>That is exactly what happened to Silicon Valley Bank, which had to sell $21 billion in highly liquid assets to cover the exodus of deposits. It took a $1.8 billion loss on that sale.\u003c/p>\n\u003cp>Tyrner said she’s spoken to several friends who are backed by venture capital. She described those friends as being “beside themselves” over the bank’s failure. Tyrner’s chief operating officer tried to withdraw her company’s funds on Thursday, but failed to do so in time.\u003c/p>\n\u003cp>“One friend said they couldn’t make payroll today and cried when they had to inform 200 employees because of this issue,” Tyrner said.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cp>A year ago, 80% of the roughly 30 Ukrainians working for San Francisco-based outsourcing company JetBridge \u003ca href=\"https://www.kqed.org/news/11906302/why-russias-invasion-of-ukraine-is-personal-for-silicon-valley\">fled Ukraine following Russia’s invasion\u003c/a>. Now, they’re all back in western Ukraine, which is relatively safer. But that’s not to say everything’s normal outside of work.\u003c/p>\n\u003cp>“Everyone is physically OK, but lack of electricity is a huge problem now,” said CEO John Sung Kim. He’s married to a Ukrainian and his in-laws live in recently liberated Mykolayiv. He worries the city might be shelled again, or his family could be drafted, or both. He worries that might happen to his employees. They worry, too.\u003c/p>\n\u003cp>“I can see on Zoom that they’re starting to get the 10,000-yard stare, from trauma,” Kim said.\u003c/p>\n\u003cp>The company’s Belarus-based workforce of five — also displaced following Russia’s invasion of Ukraine — is now in Poland.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>For years, Ukraine has been one of Silicon Valley’s favorite offshore outposts for educated, cheap IT labor. Google, Grammarly, Oracle and many other companies employ workers in Ukraine.\u003c/p>\n\u003cp>“We are proud to be Ukraine-founded and -built, with many team members who call Ukraine home,” Brad Hoover, CEO of San Francisco-based Grammarly, \u003ca href=\"https://www.grammarly.com/blog/support-ukraine-2023/\">posted recently on the company blog\u003c/a>. “I’m inspired by our colleagues in Ukraine who persevere through daily challenges with grit and adaptability. I admire the strength and bravery of team members who volunteer, fundraise, and serve in Ukraine’s armed forces to defend their homeland.”\u003c/p>\n\u003cp>https://twitter.com/Grammarly/status/1612491205715103752?s=20\u003c/p>\n\u003cp>A recent \u003ca href=\"https://blog.google/outreach-initiatives/public-policy/updates-google-support-for-ukraine/\">Google blog post\u003c/a> details how the Mountain View-based global tech giant has supported Ukraine, ranging from campaigns to counter Russian disinformation about the invasion to the \u003ca href=\"https://www.campus.co/europe/ukraine-support-fund/\">Google for Startups Ukraine Support Fund\u003c/a>, designed to help Ukrainian businesses “maintain liquidity, continue operations and incentivize further investment.”\u003c/p>\n\u003cp>While many Ukrainians have fled to safer places, including the United States, others have stayed or returned out of patriotism, or because they don’t want to leave family behind. Also, they’ve gotten used to military conflict with Russia stretching back to the invasion of 2014.\u003c/p>\n\u003cp>Andy Kurtzig, CEO of the San Francisco-based online expert platform JustAnswer, has about 315 employees based in Ukraine. That’s up roughly 65 people from last year, because, like JetBridge, JustAnswer has hired more people from Ukraine over the past year, despite the Russian invasion.\u003c/p>\n\u003cp>“We’re fairly well-prepared,” Kurtzig said. “We do have generators at our offices. We do have Starlink’s internet at our offices. And so it’s interesting — a lot of our employees, and their families, even, come to our office when the power goes out, because they can take a hot shower and they, you know, charge their devices, and be warm.”\u003c/p>\n\u003cp>Kurtzig and his company have \u003ca href=\"https://www.prnewswire.com/news-releases/justanswer-and-the-arizae-foundation-have-raised-more-than-3-million-in-support-of-ukraines-fight-for-freedom-301720473.html\">done a number of things to support Ukraine\u003c/a>: set up a \u003ca href=\"https://www.arizae.org/\">nonprofit\u003c/a> that’s \u003ca href=\"https://www.prnewswire.com/news-releases/justanswer-and-the-arizae-foundation-have-raised-more-than-3-million-in-support-of-ukraines-fight-for-freedom-301720473.html\">raised more than $3 million\u003c/a>, built a mental health center, and directed employees in updating and upgrading military equipment — JustAnswer engineers based in Ukraine helped upgrade the military’s air defense system in cooperation with the Ukraine military via the company’s partnership with a local group known as the Lviv IT Cluster.\u003c/p>\n\u003cp>Both Kim and Kurtzig say they’re not the only Silicon Valley CEOs doing this kind of thing, and both insist Ukraine will prevail, eventually.\u003c/p>\n\u003cp>Kurtzig has visited Ukraine twice since the war started, and plans to go again next week. What explains his personal passion for the country? The people.\u003c/p>\n\u003cp>“These are good, kind, smart, talented, funny people that don’t deserve this. I feel like we’ve been in a position to be able to be helpful because of all of our connections there,” Kurtzig said.\u003c/p>\n\u003cp>\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003cp>A year ago, 80% of the roughly 30 Ukrainians working for San Francisco-based outsourcing company JetBridge \u003ca href=\"https://www.kqed.org/news/11906302/why-russias-invasion-of-ukraine-is-personal-for-silicon-valley\">fled Ukraine following Russia’s invasion\u003c/a>. Now, they’re all back in western Ukraine, which is relatively safer. But that’s not to say everything’s normal outside of work.\u003c/p>\n\u003cp>“Everyone is physically OK, but lack of electricity is a huge problem now,” said CEO John Sung Kim. He’s married to a Ukrainian and his in-laws live in recently liberated Mykolayiv. He worries the city might be shelled again, or his family could be drafted, or both. He worries that might happen to his employees. They worry, too.\u003c/p>\n\u003cp>“I can see on Zoom that they’re starting to get the 10,000-yard stare, from trauma,” Kim said.\u003c/p>\n\u003cp>The company’s Belarus-based workforce of five — also displaced following Russia’s invasion of Ukraine — is now in Poland.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\u003c/p>\n\u003cp>For years, Ukraine has been one of Silicon Valley’s favorite offshore outposts for educated, cheap IT labor. Google, Grammarly, Oracle and many other companies employ workers in Ukraine.\u003c/p>\n\u003cp>“We are proud to be Ukraine-founded and -built, with many team members who call Ukraine home,” Brad Hoover, CEO of San Francisco-based Grammarly, \u003ca href=\"https://www.grammarly.com/blog/support-ukraine-2023/\">posted recently on the company blog\u003c/a>. “I’m inspired by our colleagues in Ukraine who persevere through daily challenges with grit and adaptability. I admire the strength and bravery of team members who volunteer, fundraise, and serve in Ukraine’s armed forces to defend their homeland.”\u003c/p>\u003c/p>\u003c/div>",
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"content": "\u003cdiv class=\"post-body\">\u003cp>\n\u003cp>A recent \u003ca href=\"https://blog.google/outreach-initiatives/public-policy/updates-google-support-for-ukraine/\">Google blog post\u003c/a> details how the Mountain View-based global tech giant has supported Ukraine, ranging from campaigns to counter Russian disinformation about the invasion to the \u003ca href=\"https://www.campus.co/europe/ukraine-support-fund/\">Google for Startups Ukraine Support Fund\u003c/a>, designed to help Ukrainian businesses “maintain liquidity, continue operations and incentivize further investment.”\u003c/p>\n\u003cp>While many Ukrainians have fled to safer places, including the United States, others have stayed or returned out of patriotism, or because they don’t want to leave family behind. Also, they’ve gotten used to military conflict with Russia stretching back to the invasion of 2014.\u003c/p>\n\u003cp>Andy Kurtzig, CEO of the San Francisco-based online expert platform JustAnswer, has about 315 employees based in Ukraine. That’s up roughly 65 people from last year, because, like JetBridge, JustAnswer has hired more people from Ukraine over the past year, despite the Russian invasion.\u003c/p>\n\u003cp>“We’re fairly well-prepared,” Kurtzig said. “We do have generators at our offices. We do have Starlink’s internet at our offices. And so it’s interesting — a lot of our employees, and their families, even, come to our office when the power goes out, because they can take a hot shower and they, you know, charge their devices, and be warm.”\u003c/p>\n\u003cp>Kurtzig and his company have \u003ca href=\"https://www.prnewswire.com/news-releases/justanswer-and-the-arizae-foundation-have-raised-more-than-3-million-in-support-of-ukraines-fight-for-freedom-301720473.html\">done a number of things to support Ukraine\u003c/a>: set up a \u003ca href=\"https://www.arizae.org/\">nonprofit\u003c/a> that’s \u003ca href=\"https://www.prnewswire.com/news-releases/justanswer-and-the-arizae-foundation-have-raised-more-than-3-million-in-support-of-ukraines-fight-for-freedom-301720473.html\">raised more than $3 million\u003c/a>, built a mental health center, and directed employees in updating and upgrading military equipment — JustAnswer engineers based in Ukraine helped upgrade the military’s air defense system in cooperation with the Ukraine military via the company’s partnership with a local group known as the Lviv IT Cluster.\u003c/p>\n\u003cp>Both Kim and Kurtzig say they’re not the only Silicon Valley CEOs doing this kind of thing, and both insist Ukraine will prevail, eventually.\u003c/p>\n\u003cp>Kurtzig has visited Ukraine twice since the war started, and plans to go again next week. What explains his personal passion for the country? The people.\u003c/p>\n\u003cp>“These are good, kind, smart, talented, funny people that don’t deserve this. I feel like we’ve been in a position to be able to be helpful because of all of our connections there,” Kurtzig said.\u003c/p>\n\u003cp>\u003c/p>\n\u003c/div>\u003c/p>",
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"content": "\u003cp>A new study of Silicon Valley wealth, income and other economic measures shows vast disparities in one of the country’s wealthiest regions, with the top 10% of households holding 66% of the investable assets in the region last year.\u003c/p>\n\u003cp>In Santa Clara and San Mateo counties, \u003ca href=\"https://jointventure.org/download-the-2023-index\">just eight households held more wealth than the bottom 50%\u003c/a> (nearly half a million households), according to the Silicon Valley Index, an annual report by the Silicon Valley Institute for Regional Studies, the research arm of Joint Venture Silicon Valley.[pullquote align=\"right\" size=\"medium\" citation=\"Russell Hancock, chief executive, Silicon Valley Institute for Regional Studies\"]‘We live in a capitalist system that is based on markets. There’s rules to the game; the rules are fair. In Silicon Valley, we have some of the world’s biggest winners.’[/pullquote]“We live in a capitalist system that is based on markets,” said Russell Hancock, chief executive of the San José-based think tank. “There’s rules to the game; the rules are fair. In Silicon Valley, we have some of the world’s biggest winners.”\u003c/p>\n\u003cp>Hancock added that the report highlights the need for more investments in education and “equipping people for success.”\u003c/p>\n\u003cp>The institute defines Silicon Valley as Santa Clara and San Mateo counties, as well as parts of Santa Cruz and southern Alameda counties. The think tank also includes San Francisco in some of its metrics. The report focused solely on data from Santa Clara and San Mateo counties for its wealth analyses.\u003c/p>\n\u003cp>Wealth inequality in Silicon Valley is more pronounced than in the U.S. overall, or globally, with the top 1% of households holding 48 times more of the total wealth than the bottom 50%, according to the report. That compares to 23 times nationally and globally, the report said.\u003c/p>\n\u003ch2>Ultra rich\u003c/h2>\n\u003cp>The report estimates Silicon Valley’s aggregate household wealth is nearly $1.1 trillion, when it counts ultra-high-net-worth individuals.\u003c/p>\n\u003cp>The report marks the first time the think tank published wealth estimates that include data on these ultra-high-net-worth individuals, whom the institute defined as those with net investable assets of $30 million or more.\u003c/p>\n\u003cp>Such assets are those that are held in cash, or can easily and quickly be converted into cash, including checking accounts, certificates of deposit and retirement accounts. The group did not count houses, cars or other nonliquid financial holdings as investable assets.\u003c/p>\n\u003cp>Santa Clara and San Mateo counties had 163,000 millionaire households in 2022, which the report defined as households that had more than $1 million in investable assets. That translates to less than 1% of the region’s population holding about 36% of its wealth.\u003c/p>\n\u003cp>And an estimated 8,300 households held more than $10 million in investable assets, according to the report.\u003c/p>\n\u003cp>Conversely, there were about 220,000 Silicon Valley households with fewer than $5,000 in total assets.\u003c/p>\n\u003cp>About 23% of Silicon Valley residents lived below the poverty threshold in 2021, a three-percentage-point increase from 2019. Two percent of Silicon Valley households, or about 22,000 households, did not hold bank accounts.\u003cbr>\n\u003c!-- iframe plugin v.4.3 wordpress.org/plugins/iframe/ -->\u003cbr>\n\u003ciframe loading=\"lazy\" src=\"https://flo.uri.sh/visualisation/12779669/embed\" title=\"Interactive or visual content\" class=\"flourish-embed-iframe\" frameborder=\"0\" scrolling=\"no\" style=\"width:100%;height:600px;\" sandbox=\"allow-same-origin allow-forms allow-scripts allow-downloads allow-popups allow-popups-to-escape-sandbox allow-top-navigation-by-user-activation\" width=\"100%\" height=\"500\">\u003c/iframe>\u003cbr>\nThe report also noted that while income inequality was lessening statewide, down 1%, as well as nationally, down 3%, income inequality rose in Silicon Valley by 5% in 2021. Generally, the pace of income inequality growth since the 2009 recession has been twice that of the nation, the report said.\u003c/p>\n\u003cp>The disparities in Silicon Valley began in earnest in the 1990s, when the internet economy first took off, and grew more pronounced after 2010, following the Great Recession. The first two years of the pandemic exacerbated the inequality, the report said.\u003c/p>\n\u003cp>[ad fullwidth]\u003c/p>\n\u003cp>\u003c/p>\n",
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"content": "\u003cdiv class=\"post-body\">\u003cp>“We live in a capitalist system that is based on markets,” said Russell Hancock, chief executive of the San José-based think tank. “There’s rules to the game; the rules are fair. In Silicon Valley, we have some of the world’s biggest winners.”\u003c/p>\n\u003cp>Hancock added that the report highlights the need for more investments in education and “equipping people for success.”\u003c/p>\n\u003cp>The institute defines Silicon Valley as Santa Clara and San Mateo counties, as well as parts of Santa Cruz and southern Alameda counties. The think tank also includes San Francisco in some of its metrics. The report focused solely on data from Santa Clara and San Mateo counties for its wealth analyses.\u003c/p>\n\u003cp>Wealth inequality in Silicon Valley is more pronounced than in the U.S. overall, or globally, with the top 1% of households holding 48 times more of the total wealth than the bottom 50%, according to the report. That compares to 23 times nationally and globally, the report said.\u003c/p>\n\u003ch2>Ultra rich\u003c/h2>\n\u003cp>The report estimates Silicon Valley’s aggregate household wealth is nearly $1.1 trillion, when it counts ultra-high-net-worth individuals.\u003c/p>\n\u003cp>The report marks the first time the think tank published wealth estimates that include data on these ultra-high-net-worth individuals, whom the institute defined as those with net investable assets of $30 million or more.\u003c/p>\n\u003cp>Such assets are those that are held in cash, or can easily and quickly be converted into cash, including checking accounts, certificates of deposit and retirement accounts. The group did not count houses, cars or other nonliquid financial holdings as investable assets.\u003c/p>\n\u003cp>Santa Clara and San Mateo counties had 163,000 millionaire households in 2022, which the report defined as households that had more than $1 million in investable assets. That translates to less than 1% of the region’s population holding about 36% of its wealth.\u003c/p>\n\u003cp>And an estimated 8,300 households held more than $10 million in investable assets, according to the report.\u003c/p>\n\u003cp>Conversely, there were about 220,000 Silicon Valley households with fewer than $5,000 in total assets.\u003c/p>\n\u003cp>About 23% of Silicon Valley residents lived below the poverty threshold in 2021, a three-percentage-point increase from 2019. Two percent of Silicon Valley households, or about 22,000 households, did not hold bank accounts.\u003cbr>\n\u003c!-- iframe plugin v.4.3 wordpress.org/plugins/iframe/ -->\u003cbr>\n\u003ciframe loading=\"lazy\" src=\"https://flo.uri.sh/visualisation/12779669/embed\" title=\"Interactive or visual content\" class=\"flourish-embed-iframe\" frameborder=\"0\" scrolling=\"no\" style=\"width:100%;height:600px;\" sandbox=\"allow-same-origin allow-forms allow-scripts allow-downloads allow-popups allow-popups-to-escape-sandbox allow-top-navigation-by-user-activation\" width=\"100%\" height=\"500\">\u003c/iframe>\u003cbr>\nThe report also noted that while income inequality was lessening statewide, down 1%, as well as nationally, down 3%, income inequality rose in Silicon Valley by 5% in 2021. Generally, the pace of income inequality growth since the 2009 recession has been twice that of the nation, the report said.\u003c/p>\n\u003cp>The disparities in Silicon Valley began in earnest in the 1990s, when the internet economy first took off, and grew more pronounced after 2010, following the Great Recession. The first two years of the pandemic exacerbated the inequality, the report said.\u003c/p>\n\u003cp>\u003c/p>\u003c/div>",
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"info": "Our flagship program, helmed by Kai Ryssdal, examines what the day in money delivered, through stories, conversations, newsworthy numbers and more. Updated Monday through Friday at about 3:30 p.m. PT.",
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"mindshift": {
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"info": "The MindShift podcast explores the innovations in education that are shaping how kids learn. Hosts Ki Sung and Katrina Schwartz introduce listeners to educators, researchers, parents and students who are developing effective ways to improve how kids learn. We cover topics like how fed-up administrators are developing surprising tactics to deal with classroom disruptions; how listening to podcasts are helping kids develop reading skills; the consequences of overparenting; and why interdisciplinary learning can engage students on all ends of the traditional achievement spectrum. This podcast is part of the MindShift education site, a division of KQED News. KQED is an NPR/PBS member station based in San Francisco. You can also visit the MindShift website for episodes and supplemental blog posts or tweet us \u003ca href=\"https://twitter.com/MindShiftKQED\">@MindShiftKQED\u003c/a> or visit us at \u003ca href=\"/mindshift\">MindShift.KQED.org\u003c/a>",
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"info": "For decades, the process for how police police themselves has been inconsistent – if not opaque. In some states, like California, these proceedings were completely hidden. After a new police transparency law unsealed scores of internal affairs files, our reporters set out to examine these cases and the shadow world of police discipline. On Our Watch brings listeners into the rooms where officers are questioned and witnesses are interrogated to find out who this system is really protecting. Is it the officers, or the public they've sworn to serve?",
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"tagline": "Politics from a personal perspective",
"info": "Political Breakdown is a new series that explores the political intersection of California and the nation. Each week hosts Scott Shafer and Marisa Lagos are joined with a new special guest to unpack politics -- with personality — and offer an insider’s glimpse at how politics happens.",
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"possible": {
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"title": "Possible",
"info": "Possible is hosted by entrepreneur Reid Hoffman and writer Aria Finger. Together in Possible, Hoffman and Finger lead enlightening discussions about building a brighter collective future. The show features interviews with visionary guests like Trevor Noah, Sam Altman and Janette Sadik-Khan. Possible paints an optimistic portrait of the world we can create through science, policy, business, art and our shared humanity. It asks: What if everything goes right for once? How can we get there? Each episode also includes a short fiction story generated by advanced AI GPT-4, serving as a thought-provoking springboard to speculate how humanity could leverage technology for good.",
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"pri-the-world": {
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"info": "Each weekday, host Marco Werman and his team of producers bring you the world's most interesting stories in an hour of radio that reminds us just how small our planet really is.",
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"imageSrc": "https://cdn.kqed.org/wp-content/uploads/2024/04/The-World-Podcast-Tile-360x360-1.jpg",
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},
"radiolab": {
"id": "radiolab",
"title": "Radiolab",
"info": "A two-time Peabody Award-winner, Radiolab is an investigation told through sounds and stories, and centered around one big idea. In the Radiolab world, information sounds like music and science and culture collide. Hosted by Jad Abumrad and Robert Krulwich, the show is designed for listeners who demand skepticism, but appreciate wonder. WNYC Studios is the producer of other leading podcasts including Freakonomics Radio, Death, Sex & Money, On the Media and many more.",
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},
"reveal": {
"id": "reveal",
"title": "Reveal",
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