The recent happenings surrounding Silicon Valley Bank (SVB) have raised important questions and concerns for start-ups and emerging companies. As a law firm serving the needs of these companies, we understand the challenges that businesses are facing in the wake of this situation and are here to provide guidance and support.
For those unfamiliar with the situation, SVB is a financial institution that specializes in serving technology and life sciences companies. In recent months, the bank has been involved in a number of legal battles, including a lawsuit brought by a group of its shareholders who claim that the bank misused their funds.
In light of these developments, many start-ups and emerging companies are seeking information and guidance on what to do next. As of this morning, it appears that the Feds will be stepping in to ensure depositors can access their funds.
Additionally, while we hope this will not happen again, it could and therefore we have compiled the following resources and tips for companies:
File a claim: If you have been impacted by the situation at SVB, or any other banking situation, it is important to take action and file a claim. The FDIC has established a Claims Portal where you can submit your claim and receive information about the status of your case. You can find more information about the Claims Portal here.
Seek advice from a financial advisor: SVB or any other banking situation can be confusing and complex. It is important to seek the advice of a trusted financial advisor. A financial advisor can help you understand the situation and determine the best course of action for your business.
Be prepared for changes to payroll and lines of credit: The situation at SVB could impact payroll and lines of credit for some companies. It is important to be prepared for these changes and have contingency plans in place to ensure that your business can continue to operate smoothly. One recommendation is to have cash spread across multiple accounts at different banks. Some resources for lines of credit include: Tranch, Nitra, Brex, and Arc. (Thanks to Jesse Middleton for putting this list together)
Review the FDIC FAQs: To better understand the situation and your rights as a customer of SVB, or any other bank, it is important to review the FDIC FAQs here.
The Silicon Valley Bank situation is a complex and evolving situation that is impacting many start-ups and emerging companies. However, by following the tips and resources outlined above, companies can take steps to protect themselves and ensure that they are well-positioned for success in the future.
If you have any questions or need additional support, please reach out to legal counsel for guidance.