It has been said in the petition that it is estimated that this banking crisis will affect more than 10,000 small businesses and startups.
Silicon Valley Bank, a significant bank in America, has shut down. The issue has gotten so bad that the bank's rupees have lost 100 billion dollars in just a few days. All startups were once funded by this bank. Due to its decline, startups and investors are now more worried.
Nevertheless, Y Combinator said that roughly 10,000 small firms with accounts in Silicon Valley Bank may be impacted in a petition it submitted to the US government. Also, it is possible that up to 1 lakh jobs could be destroyed, which would result in extremely high unemployment. This may potentially have an impact on a few Indian startups.
Not only did 1 lakh individuals lose their jobs as a result of the bank crisis, but the employees' monthly salaries may also be decreased, or there may still be a crisis even after the money has been paid. A third of the firms in the Y Combinator ecosystem are reportedly running under a single account at the Silicon Valley bank, according to the petition, which was delivered to US Secretary of the Treasury Janet Yellen.
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According to an email sent to staff that Reuters was able to receive, the Federal Deposit Insurance Corp, the regulator that took over the bankrupt lender on Friday, offered Silicon Valley Bank employees 45 days of employment at 1.5 times their salary.
The FDIC stated in an email late Friday headlined "Employee Retention" that employees will be registered and given benefit information over the weekend, and that the former parent company SVB Financial Group (SIVB.O) would offer information on healthcare. SVB employed 8,528 people as of the end of the previous year.
It has been said in the petition that it is estimated that this banking crisis will affect more than 10,000 small businesses and startups. On the other hand, if 10 people are being given average jobs, then there is a possibility of 1 lakh people losing their jobs.
At the same time, more than 3,500 CEOs and co-founders of startups and small enterprises, including the Indian firms PayO, SaveIN, and SalaryBook, have endorsed this initiative.
Silicon Valley Bank has more than 37,000 small businesses with deposits totalling more than USD 250,000, according to the NVCA. The bank, however, is no longer able to utilise this sum. The FDIC is in charge of it, and it will act as a receiver for many years.
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