Gov. Phil Murphy authorized $35 million in assistance for investors connected to Silicon Valley Bank and Signature Bank after Silicon Valley collapsed and New York authorities shut down Signature.

The money comes from funds the state Economic Development Authority already has. The Murphy administration says that this is not a bailout.

“We care about our innovation ecosystem. We care about the startup parts of our economy,” says Tim Sullivan, CEO of the Economic Development Authority.

Sullivan says the companies affected by the SVB collapse are, “Less Main Street and more the entrepreneurial start-up part of the economy.”

“Maybe they've got the next Tesla, the next Facebook, the next whatever in their garage or on their laptop but they haven't quite made it yet,” Sullivan says.

The EDA is offering a total of $35 million in assistance - helping those whose assets were tied to the failed SVB and shutdown Signature bank still make their payroll and rent.

“I obviously don't want to share names of companies, but lots of companies. You know, mostly small companies, under the radar type early-stage companies…were expressing some real anxiety or worse over the weekend over what was going to happen to them if they weren't able to access their cash,” Sullivan says.

But Federal Reserve Chair Jerome Powell and others said Sunday depositors would have access to their cash Monday.

“I'm hoping for the best but we're going to prepare for the worst,” Murphy said.

Murphy and Sullivan both say the banking crisis increases the likelihood of an economic downturn in the next six to 12 months.

“It's higher today than it was a couple of weeks ago, for sure. Not necessarily because of Silicon Valley Bank, per se, but what it reveals about overall issues with the economy,” Sullivan says.