Dear Patriot Software Customer,
I’m sure you’ve heard the news that on Friday 3/10/23 the 16th-largest bank in the USA, Silicon Valley Bank (SVB), was shut down by California regulators, and it’s now under the control of the FDIC.
Up until 3/10/23, SVB was the bank that Patriot Software used for 100% of its activities. This stunning bank failure managed to temporarily prevent ~8,100 of Patriot’s tens of thousands of American customers from paying their employees for one day – Friday 3/10/23. So like you, I am ticked, really ticked about this banking debacle. But rather than complaining, here’s what we’re doing about it:
#1) We want to get everybody who should have been paid on Friday paid right away. To help with this, we have engaged some outside specialists to help the FDIC quickly determine that the right thing to do is to unfreeze payroll companies like Patriot Software so that the tens of thousands of employees awaiting their Friday paycheck will receive it right away. Of course, I can’t make any promises for the FDIC – other than to reiterate what they wrote in their memo linked above, which states “All insured depositors will have full access to their insured deposits no later than Monday morning, March 13, 2023.”
#2) We are working with 3 different banks to immediately replace SVB entirely from our world. We are very optimistic that we can get this done in 2-3 business days, which is unbelievably fast for bankers. So we’re expecting to regain normal operations this coming week, meaning that we anticipate that all Patriot customers will be able to safely run their payrolls with direct deposit later this week, without experiencing further banking drama.
Lastly, I want to tell you this: I am so sorry for you, our customers, your employees, and our entire Patriot team that did not receive paychecks Friday. We will do everything in our power to communicate to you as we learn more from the FDIC as they begin releasing funds from the SVB accounts.
I’ve been in business for over 40 years, and I know moments like this are rough for all of us. I started in the basement of a factory with no heat, no air conditioning, floors that would flood, and no customers. My only visitors were rats, birds, flies, and snakes. I toiled and was able to grow that business into a few medium-sized businesses, and then finally on to Patriot Software as a large business. So, I know the types of struggles you face, because I have faced them too. This is why I want you to know that this banking screwup is not going to stop Patriot or our American customers from moving forward. It’s only a temporary speed bump that will quickly pass. Again, we will update you as we learn more. And I want to thank you for your patience, trust, and for sticking with us!
Sincerely,
Mike Kappel, CEO of Patriot Software
