Bloomberg — Global asset manager and technology lender Liquidity Group plans to offer about $3 billion in emergency loans to startup clients affected by the Silicon Valley Bank collapse.
Liquidity has about $1.2 billion in cash available in the coming weeks.said CEO and co-founder Ron Daniel in an interview Sunday. The group is also in talks with its financing partners, including Mitsubishi UFJ Financial Group Inc. and Apollo Global Management Inc. of Japan, to offer an additional $2 billion in loans, he said.
“By helping businesses survive now, we hope some of them will succeed and come back to us in the future,” said Daniel. “We nurture our future customers.”
A typical loan could be a one-year line of between $1 million and $10 million, or up to 30% of the balance held with SVB, says Daniel. His priority is helping companies deal with payroll costs.
The tech-focused lender’s dramatic fall caused shock around the world, as startup founders from the California Bay Area to the UK worry about access to their funds. The US regulator overseeing emergency escapees SVB Financial Group is racing to sell assets and make some of its uninsured client deposits available as early as Monday.
Released in 2018, Liquidity Group achieves unicorn status after receiving $40 million in new investment from MUFG in February with a value of $1.4 billionaccording to a press release.
—With the collaboration of Katie Roof.
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