The UK government is working "at pace on a solution to avoid or minimise damage to some of our most promising companies in the UK” following the Bank of England’s decision to put Silicon Valley Bank UK into insolvency, according to a statement released Sunday morning by the Treasury.
“We will bring forward immediate plans to ensure the short term operational and cashflow needs of Silicon Valley Bank UK customers are able to be met,” the statement read.
The statement also said that the governor of the Bank of England, UK Prime Minister Rishi Sunak and the UK’s finance chief Jeremy Hunt have discussed a response this weekend.
Silicon Valley Bank UK, a subsidiary of the US bank that failed on Friday, is the bank of choice for as much of half the UK’s startups and many of its VC funds, say investors. Many founders are concerned about making payroll or paying other expenses in the wake of the bank's implosion.
Sifted will be running a webinar next week with experts giving advice to founders on the SVB situation next week. Register interest here.