BILL Discusses Impact of Silicon Valley Bank Closure
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
$2.6 billion held at multiple financial institutions. Of this amount, approximately$300 million is held at SVB. These corporate deposits with SVB are largely uninsured, and it is unclear how much of this cash will be unrecoverable.
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The Company has total cash held in trust on behalf of our customers (“FBO Funds“) of approximately
$3.3 billion , held at multiple financial institutions. Of this amount, approximately$370 million 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 theFDIC indicating that all outstanding checks issued from SVB accounts will be honored. In addition, up to$250,000 of each BILL customer’s funds held in our FBO account may be recoverable through FDIC’s pass-through insurance.
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:
mheller@hq.bill.com
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