27 Apr, 2020, 09:00 ET
SANTA CLARA, Calif., April 27, 2020 /PRNewswire/ -- Silicon Valley Bank (SVB), the bank of the world's most innovative companies and their investors, today announced the expansion of its COVID-19 Response & Community Support initiatives designed to support clients with financial hardships, help stabilize the broader innovation economy and provide on-the-ground relief in communities around the world in which SVB operates.
SVB continues to offer a variety of debt relief options for clients negatively impacted by the COVID-19 pandemic. SVB is also participating in the Small Business Administration's Paycheck Protection Program (PPP) under the US CARES Act and will donate the net PPP origination fees it receives from the SBA to relief efforts. These funds will be added to the $5.5 million that SVB previously committed to COVID-19 related community efforts and global relief funds.
"Many of our clients, our employees and those in communities where we work and live are facing pandemic-related hardships, and we consider it our responsibility to support them and the wider innovation ecosystem as best we possibly can during this exceptionally difficult time," said Greg Becker, CEO of Silicon Valley Bank. "Our banking teams around the world are working hard to deliver creative and flexible solutions to help clients and communities being tested by this crisis."
SVB Debt Relief
SVB's venture debt relief initiative, launched on April 1, has enabled more than 1,000 startups to defer their principal payments on a combined $1.8 billion in funded debt for six months. The Premium Wine Division is enabling a majority of clients to defer principal payments for three or six months. In addition, SVB Private Bank clients are given the option to defer mortgage payments for 90 days.
SVB is actively working with industry groups and government leaders where we operate to help design and implement small-business economic relief programs and initiatives to help stabilize the innovation ecosystem and prepare for recovery. SVB participated in the Paycheck Protection Program under the US CARES Act and received applications from more than 5,500 small businesses and startups. As of April 16, when the SBA stopped accepting applications, SVB had obtained SBA guarantees for nearly 70% of its applicants. The SBA is expected to reopen the PPP on April 27, 2020, at which time SVB will continue the review and submission process for as many of the applications as possible that were previously received. SVB is reviewing other government programs for client eligibility.
In the UK, SVB is in the process of applying to become an accredited lender under the Coronavirus Business Interruption Loan Scheme (CBILS).
Startup and Small Business Resources
SVB is supporting emergency small business grants through Hello Alice's Business for All initiative. Hello Alice provides grants and guidance to small, women- and minority-owned businesses and hosts a free COVID-19 Business Resource Center to link these businesses to relief programs, funding opportunities, mentors and other support programs designed for New Majority entrepreneurs. To learn more and apply for emergency grants, go to https://www.covid19businesscenter.com/.
SVB is targeting philanthropic efforts in three primary areas: health, food security and shelter, and small business relief. The bank has committed $5.5 million to COVID-19 charitable relief initiatives across the eight countries and 15 US states where the bank operates. This includes corporate contributions to global, national and regional charities, direct community-based giving and a 3:1 match for employees' donations to relevant causes. Today, SVB is announcing that it will contribute net PPP loan origination fees it receives from the SBA to COVID-19 relief efforts.
The COVID-19 Global Impact & Innovation Fund, launched in partnership with Founders Pledge on March 30, was established to identify and consolidate into a single fund high-impact organizations that are creating solutions to the pandemic crisis. SVB made an initial $1 million investment in the fund, which is accepting contributions from the public. The fund is now focused on activities to help slow COVID-19's spread and provide immediate relief to those affected. Looking ahead, it will target initiatives to better prepare for future pandemics. Read more about the fund and its goals at https://www.founderspledge.com/svb-covid-19.
Supporting Our Employees
SVB is supporting employees and their families with health, well-being and financial support programs. COVID-19 medical testing and treatment are provided with no member-out-of-pocket costs for US-based employees under SVB insurance plans. Expanded benefits include paid time off for COVID-related sick leave or family care, access to free and subsidized child care, mental health and financial counseling services, educational opportunities for employees and their children, employee mortgage payment deferral, expanded 401(k) loans or distributions, grants for personal charitable donations and payments for some work-from-home expenses, including utilities and remote office set-up.
For updates on SVB's COVID-19 Response & Community Support efforts, go to https://www.svb.com/covid-relief.
About Silicon Valley Bank
For more than 35 years, Silicon Valley Bank (SVB) has helped innovative companies and their investors move bold ideas forward, fast. SVB provides targeted financial services and expertise through its offices in innovation centers around the world. With commercial, international and private banking services, SVB helps address the unique needs of innovators. Learn more at svb.com.
©2020 SVB Financial Group. All rights reserved. SVB, SVB FINANCIAL GROUP, SILICON VALLEY BANK, MAKE NEXT HAPPEN NOW and the chevron device are trademarks of SVB Financial Group, used under license. Silicon Valley Bank is a member of the FDIC and the Federal Reserve System. Silicon Valley Bank is the California bank subsidiary of SVB Financial Group (Nasdaq: SIVB).
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