Several early stage companies are being impacted by the uncertainty associated with the latest developments regarding the receivership of Silicon Valley Bank.
On this page we are providing some tools and resources addressing common questions and issues that early stage companies are facing.
Q: We had to move funds out of our company account at SVB and temporarily place them in an account of one of our founders. What do we need to do?
A: That situation would normally require a temporary custody-type arrangement as well as the appropriate board consents and waivers to transfer the funds and open a new bank account. For your convenience we are linking the following forms:
- Temporary Custody Agreement (short form)
- Board Approval of TCA, new bank account opening and interested director waiver
Q: We had to secure emergency funding via an unsecured line of credit. How do we document that?
A: The company and the emergency lender would normally enter into an interim credit agreement and, to the extent a third party is guaranteeing the company obligations, a limited guaranty would normally be put in place. For your convenience, we are linking the following forms:
Q: We needed emergency funding from one of our investors to meet certain obligations and our investor is agreeable to waiving repayment. What do we need to do to evidence this?
A: A waiver would typically be appropriate under the circumstances. For your convenience we are linking the following forms:
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