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The FDIC will pay an advanced dividend next week. We have no idea how much that will be but it is probably conservative. Some companies may not be able to make
by nemo44x 4y ago
The FDIC will pay an advanced dividend next week. We have no idea how much that will be but it is probably conservative. Some companies may not be able to make payroll today or early next week. Some may not be able to pay their vendors for the things that allow their businesses to run.
It may only be a couple day disruption but what if your employees quit? What if your vendors cut your access and your customers leave?
What if you don't get made whole but get back 80% of your cash? Now your runway is 20% shorter in a climate where investors aren't around.
This could be very bad.
- dragonwriter 4y ago> It may only be a couple day disruption but what if your employees quit? Even if they don’t, in California there is a statutory penalty payable to the employee of $100 to each affected employee for a first, non-willful late payment of wages (second or subsequent violations, or any willful or intentional violations, have a much greater penalty – $200 plus 25% of the wages not paid); that’s not a lot (if you didn’t happen to have a prior payroll hiccup bumping this into the “second or subsequent” category), but its still a hit.
- UncleOxidant 4y ago> It may only be a couple day disruption but what if your employees quit? I guess they don't have to worry so much about that what with all the tech layoffs over the last 6 months and with a lot of other statups in the SVB boat, who's going to be hiring?
- jcadam 4y agoTop people are always in demand - that's who you'll lose. The average performers you might keep if you get things sorted quickly enough...