Actionable Steps for Startup Founders and Business Owners Following Silicon Valley Bank's Closure

Here are the actionable steps startup founders should take with Silicon Valley Bank's closure:

1. Check if you have insured deposits with Silicon Valley Bank. All insured depositors will have full access to their insured deposits no later than Monday morning, March 13, 2023.

2. If you have uninsured deposits, you will receive an advance dividend within the next week. Uninsured depositors will receive a receivership certificate for the remaining amount of their uninsured funds.

3. The FDIC will sell the assets of Silicon Valley Bank, and future dividend payments may be made to uninsured depositors.

4. Contact the FDIC toll-free at 1-866-799-0959 if you have accounts in excess of $250,000.

5. Loan customers should continue to make their payments as usual.

6. Silicon Valley Bank's main office and all branches will reopen on Monday, March 13, 2023. Banking activities will resume, including online banking and other services. Silicon Valley Bank’s official checks will continue to clear.

7. Keep an eye out for updates from the FDIC as they obtain additional information from the bank and customers.

Following the closure of Silicon Valley Bank and the uncertainty surrounding uninsured deposits, many startups may be considering withdrawing their funds and seeking alternative banking options. This is because, as the FDIC only insures the first $250,000 of deposits, any funds in excess of this amount may be at risk in the event of a bank failure.

As a result, startup founders may be taking steps to ensure the safety of their funds by moving them to other banks or financial institutions that offer greater deposit insurance coverage. This potential mass exodus of funds from Silicon Valley Bank could have significant implications for the bank's financial stability and reputation in the startup community.

It is important for startup founders to carefully consider their options and weigh the risks and benefits of staying with Silicon Valley Bank or moving their funds elsewhere. They may want to consult with financial advisors or experts to make informed decisions about the best course of action for their businesses.

It is important for founders to conduct their own research and due diligence when selecting a new banking institution, and to consider factors such as deposit insurance coverage, fees, interest rates, and other services offered. They may want to consult with financial advisors or experts for guidance on selecting the best bank for their needs.