Etsy said it should soon be able to pay some of its sellers who were affected by the sudden collapse of Silicon Valley Bank.
Late last week, some Etsy sellers said they received an email stating that payments might be delayed. On Monday, an Etsy spokesperson said the company expects to use other payment partners to send out back payments.
“At Etsy, supporting our sellers is our highest priority, and we understand how important it is for these small businesses to be able to receive their funds when they need them,” Etsy said. “We recently experienced a delay in issuing payments to some sellers related to the unexpected collapse of Silicon Valley Bank. Our teams have been working around the clock to implement a solution.”
Etsy said about 0.5% of its active sellers had payments delayed.
Silicon Valley Bank was one of two banks that were seized over the weekend by federal officials. The Biden administration said companies and individuals banking with Silicon Valley Bank will still have access to their money following the company’s collapse.
Etsy was not the only company affected. Roku and Roblox stated in regulatory filings that they had cash reserves in the Silicon Valley Bank.
Yellen: The government will not bail out Silicon Valley Bank
The government reportedly looked to auction off the bank’s remaining assets, with final bids being due Sunday.
