HomeBusinessLiquidity Group is planning $3 billion emergency loans to help SVB-affected startups

Liquidity Group is planning $3 billion emergency loans to help SVB-affected startups

(Bloomberg) — Global asset manager and lender Liquidity Group plans to offer approximately $3 billion in emergency loans to early-stage clients affected by the collapse of Silicon Valley Bank.

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Liquidity has approximately $1.2 billion in cash ready to be made available in the coming weeks, CEO and co-founder Ron Daniel said in an interview on Sunday. The group is also in talks with its financing partners, including Mitsubishi UFJ Financial Group Inc. from Japan and Apollo Global Management Inc., to offer an additional $2 billion in loans, he said.

“By helping the companies survive now, I hope some of them will succeed and come back to us in the future,” said Daniel. “We cherish our future customers.”

A typical loan is a one-year $1 million to $10 million facility, or as much as 30% of balances at SVB, Daniel said. The priority is to help companies cover labor costs.

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The tech-focused lender’s dramatic demise is sending shockwaves around the world as startup founders from the Bay Area of ​​California to the UK worry about access to their funds. US regulators overseeing the emergency break-up of SVB Financial Group are rushing to sell assets and make some of customers’ uninsured deposits available from Monday.

Launched in 2018, Liquidity Group achieved unicorn status following a new $40 million investment from MUFG in February at a valuation of $1.4 billion, according to a press statement.

–With help from Katie Roof.

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