BILL Discusses Impact of Silicon Valley Bank Closure
BILL (NYSE: BILL) has addressed the recent closure of Silicon Valley Bank (SVB) by the California Department of Financial Protection and Innovation. Despite having approximately $300 million in corporate cash at SVB, the majority of its $2.6 billion in cash and processed payments are with other large financial institutions. The company estimates about $370 million in FBO Funds at SVB, with the recoverability uncertain. Nevertheless, BILL is confident that its existing cash flow and resources can meet its operational needs. As of March 9, 2023, the FDIC has assured access for insured depositors by March 13, 2023.
- BILL holds approximately $2.6 billion in total corporate cash across various institutions, ensuring liquidity.
- Confidence in cash flow and operations to meet working capital and contractual obligations.
- FDIC assurances suggest reimbursement for insured depositors by March 13, 2023.
- Approximately $300 million in corporate cash at SVB is largely uninsured, leading to uncertainty about recovery.
- About $370 million in FBO Funds held at SVB raises concerns over recoverability.
Today, the
According to the
While the Company continues to assess the potential impacts associated with SVB’s closure, we are providing the following preliminary information as of
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The Company has total corporate cash, cash equivalents, and short-term investments of approximately
held at multiple financial institutions. Of this amount, approximately$2.6 billion is held at SVB. These corporate deposits with SVB are largely uninsured, and it is unclear how much of this cash will be unrecoverable.$300 million
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The Company has total cash held in trust on behalf of our customers (“FBO Funds“) of approximately
, held at multiple financial institutions. Of this amount, approximately$3.3 billion is held at SVB. While the amount of FBO Funds that will be recoverable and timing of recovery is currently uncertain, we believe a significant portion will ultimately be recoverable. This assessment is based on information from the$370 million FDIC indicating that all outstanding checks issued from SVB accounts will be honored. In addition, up to of each BILL customer’s funds held in our FBO account may be recoverable through FDIC’s pass-through insurance.$250,000
In the event of uninsured FBO Funds, it is our intention to utilize corporate cash to ensure pending payment transactions through SVB are processed successfully.
Regardless of the amount of funds recovered from SVB and
About BILL
BILL (NYSE: BILL) is a leader in financial automation software for small and midsize businesses (SMBs). As a champion of SMBs, we are dedicated to automating the future of finance so businesses can thrive. Hundreds of thousands of businesses trust BILL solutions to manage financial workflows, including payables, receivables, and spend and expense management. With BILL, businesses are connected to a network of millions of members, so they can pay or get paid faster. Through our automated solutions, we help SMBs simplify and control their finances, so they can confidently manage their businesses, and succeed on their terms. BILL is a trusted partner of leading
Note on Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are statements other than statements of historical facts, and statements in the future tense. Forward-looking statements are based on the Company’s expectations as of the date of this Current Report and are subject to a number of risks, uncertainties and assumptions, many of which involve factors or circumstances that are beyond the Company’s control. These statements include, but are not limited to, statements regarding the cash amounts at accounts with SVB, the availability of
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IR Contact:
ksansot@hq.bill.com
Press Contact:
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FAQ
What is the impact of Silicon Valley Bank's closure on BILL?
How much cash does BILL hold at Silicon Valley Bank?
What are FBO Funds in relation to BILL?
When will SVB depositors have access to their funds?