RADNOR, PA — Safeguard Scientifics, Inc. (NASDAQ: SFE) this week provided the following summary assessment of the initial impact of Silicon Valley Bank’s closing on Friday, March 10, 2023, by the California Department of Financial Protection and Innovation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver, and the subsequent announcement on March 12, 2023, whereby the FDIC will complete its resolution of Silicon Valley Bank, Santa Clara, California, in a manner that fully protects all depositors.
Safeguard does not have a banking relationship with Silicon Valley Bank.
Seven of Safeguard’s ownership interests have banking relationships with Silicon Valley Bank. Those relationships include depository accounts, outstanding loans, and undrawn lines of credit. In addition, one of Safeguard’s Other ownership interests, of which Safeguard has an ownership interest of approximately 2%, also has significant depository amounts at Silicon Valley Bank.
“Following the announcement on March 12, 2023, whereby the FDIC will complete its resolution of the receivership of Silicon Valley Bank, Santa Clara, California, in a manner that fully protects all depositors, we believe that these seven companies will have access to their funds in a manner that will not interfere with their ordinary course operations,” stated Safeguard Scientifics. “If there are any delays with respect to accessing these funds, Safeguard will work with the management teams and other stakeholders to find solutions to any near-term issues. In addition, two companies had an aggregate of $9 million of undrawn loan commitments from Silicon Valley Bank. We are working with those management teams to develop alternative and/or additional long-term financing solutions.”
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and Microsoft Start.