Silicon Valley Bank, a financial institution with a 40-year history in the US and the UK, has experienced a bank run as founders and investors rushed to withdraw their funds due to concerns over its liquidity.
This sudden and dramatic turn of events worsened the bank’s situation, leading US regulators to step in and close SVB in California. While SVB UK attempted to reassure customers that it was still operational and its balance sheet was separate from its US parent company, the message was delivered too late. As a result, the Bank of England announced that it would be placing SVB UK into insolvency proceedings.
Startups and investors with UK SVB can expect to eventually receive £85k of their money back, while those in the US should be protected up to $250k. However, those who didn’t withdraw their funds or have money spread across multiple accounts may face a difficult few weeks ahead.
If you’re impacted by the SVB closure and need to open a new bank account, Damalion experts are here to guide you through it.
You can also choose to use any bank such as JP Morgan Chase, Bank of America, Wells Fargo, or PNC, and often your personal bank offers business services.
What you’ll need to open a banking account
- Articles of Incorporation: if your business is a C Corporation, or Certificate of Formation if it’s an LLC.
- Employer Identification Number Tax ID (EIN): It’s the 9 digit number (12-3456789)
- Tax ID documentation: A Form CP575, Form 147c Letter, or SS-4
- Certificate of Good Standing.
If your situation is special, Damalion will guide you to open a bank account to protect your assets, you may start using our services to open a bank account by clicking here: https://www.damalion.com/open-a-bank-account/ . You can also contact us by email.
