Last Updated on 54 mins by John Piper

UK-based tech startups are worried about the possible impact of the crash at Silicon Valley Bank (SVB). The United Kingdom government came up with an emergency plan to rescue affected companies in order to alleviate concerns. According to reports, the government is quickly working to develop a plan to provide “operational liquidity” and cash-flow to SVB’s UK clients. This will ensure that the short-term cash flow and operational needs of the affected businesses can be met.

More than 200 founders and chief executives of UK-based tech companies signed an open letter requesting that the government act in response to the crash. They stated that many fintech firms depended on SVB to run their banking operations and were at risk of going into receivership without any preventive action.

Prime Minister Rishi Sunderak updated them by saying that this is a top priority and that the Bank of England will provide a cashline to tech companies that have been affected by the crash.

Silicon Valley Bank is a major lender in the United States. It is especially well-known in the tech sector. It provided banking services to over 40,000 small businesses, as well as many crypto-friendly venture capital funds. Many UK-based startups are now in a difficult financial situation and some may face insolvency. According to the Bank of England, “eligible depositors”, will receive payments up to PS85,000 for single accounts and up to PS170,000 to joint accounts. This is to avoid bankruptcy or insolvency.

The Silicon Valley Bank crash serves to remind us of the importance and necessity of a stable financial sector, especially for tech industries that rely heavily on capital access. This highlights the importance of the government taking action when necessary to protect investors and depositors and prevent the collapse and disintegration of promising companies.

Coin Insider’s first article, The UK Government Plans to Rescue Companies Affected by SVB, appeared first on Coin Insider.