What Next For Startups With Deposits Stuck In Silicon Valley Bank?

What Next For Startups With Deposits Stuck In Silicon Valley Bank?

SUMMARY

The startups affected by the closure of Silicon Valley Bank can file their claims at FDIC’s portal

The FDIC claims portal is accepting claims for insured deposits; the regulatory body insures deposits of up to $250K in case of bank failures

The collapse of SVB on Friday (March 10) has triggered massive panic in the global startup ecosystem

In the wake of the collapse of Silicon Valley Bank (SVB), founders of startups, which have headquarters or operations in the US, are now looking for ways to recover their deposits from the collapsed bank.Speaking with Inc42, Anil Advani of Inventus Law said, “There is no specific timeline. We expect FDIC to find a way wherein the customers of SVB are the least impacted. While the step-by-step process may take longer, the FDIC may allow people to withdraw in tranches from the bank based on their historical withdrawal cycles.”

According to an official release by the Federal Deposit Insurance Corporation (FDIC), all insured depositors will have full access to their insured deposits by Monday, March 13.

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