I'm sure they weren't lending to zero revenue companies but there are lots of new small companies with some revenue and capital that need some momentary liquidity: credit lines, bridge loans to next equity funding, etc. And loans/services to people with stakes in such companies. Need a loan to fund exercise of options in a private company that's doing well? SVB might do something like that, Citibank not so much.
A knowledgeable bank can safely make such loans but no regulator will.
A knowledgeable bank can safely make such loans but no regulator will.