That being said, there are still plenty of small businesses that are having record years. Their biggest concern is all of the money they have sitting in their local bank that is not covered by FDIC insurance. Fortunately,there is a solution to their worry.
The Certificate of Deposit Account Registry Service (CDARS) allows a business or individual to spread their excess cash out over multiple banks so that all of their cash is insured. Even better, it is all behind the scenes, so they only get one bank statement from their local bank with all of their CD's listed on it.
In a nutshell, here is how it works. Company A has $10 million excess cash in their local bank. The local bank takes the excess cash and invests it in $100,000 CD's at 100 other local banks. In turn, those other local banks use one of their customer's excess cash to buy a $100,000 CD at Company A's local bank. When it is all said and done, the banks have the same amount of money on deposit and everyone's excess cash is FDIC insured.
The CDARS program can be used for up to $50 million in excess cash. So if you have insomnia from worrying about your uninsured cash, start participating in the CDARS program and get some sleep!