After Chris Herndon raised $9 million from venture capitalists for his travel startup The Guild five years ago, he wanted to take out a loan to pad the firm’s finances. He went with Silicon Valley Bank over JPMorgan, which had more onerous lending terms. SVB also had a closer relationship with his startup’s lead venture investor.

While he got to know other lenders that cater to startups over the years, Herndon thinks the sudden failure of SVB could shrink a crucial source of funding for young firms. “It’ll be a lot harder to get a venture loan,” said Herndon, who also co-founded Apartment List. “I don’t know if the other guys can come in and pick up the slack.”