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> only a problem for those with more than $250k, And lots of local businesses. 100 employees at 48k a year gets you to 200k a month in payroll. Never mind the

> only a problem for those with more than $250k, And lots of local businesses. 100 employees at 48k a year gets you to 200k a month in payroll. Never mind the money it takes to run that business. Even if you are under the 250k mark, if your bank closes on a pay day your staff is the group that suffers.

dv_dt 4y ago
Sounds like a perfect HN startup MVP. Split your operating cash among banks to keep under FDIC limits while presenting a convenient front end ui for payroll
- pjc50 4y ago
  Google for "insured cash sweep". https://www.cbhou.com/Resources/Customer-Corner/entryid/237/faqs-your-guide-to-insured-cash-sweep https://www.cbhou.com/Resources/Customer-Corner/entryid/237/... The specific problem for SVB was that many VCs got their companies to agree not to do this, specifically to keep all the money in SVB.
  - Pet_Ant 4y ago
    > specific problem for SVB was that many VCs got their companies to agree not to do this What was in it for the VCs???
    - pjc50 4y ago
      I have not yet heard a specific explanation for this, although there has to have been some quid pro quo.
- mos_basik 4y ago
  >Split your operating cash among banks to keep under FDIC limits while presenting a convenient front end ui for payroll I work for a six-person startup; our CEO landed on Brex after SVB, and one of the reasons he gave was that it does exactly this (up to 9 banks). See https://www.brex.com/product/business-account https://www.brex.com/product/business-account