Update: Wrapbook’s Response to Silicon Valley Bank Collapse

Update on Monday 3/13

We would like to provide an update on how Wrapbook is responding to the collapse of Silicon Valley Bank (SVB), which we were using to move payroll funds. 

• Companies should continue submitting payroll through Wrapbook.  We are processing all submitted payroll.
• Any company with an existing bank connection in Wrapbook is ready and operational without further action.
• All uncashed paper checks from SVB will be honored. To avoid delays to workers receiving funds, we have notified impacted individuals to deposit any outstanding checks as soon as possible. Failure to do so may result in delayed access to funds, as Wrapbook may need to void and reissue worker payments.

Wrapbook is in a strong financial position and we will support you as this situation evolves.

Our team is available to answer any questions you may have. Please reach out to us at support@wrapbook.com. 

FDIC statement and its implications

The Department of the Treasury, Federal Reserve, and FDIC issued a statement, March 12, at 6:15 p.m. EDT, that SVB depositors will have access to all of their money starting Monday, March 13.

This is excellent news for production companies, cast and crew. Wrapbook will continue to send updates this week related to upcoming payments and payroll processing.

We wanted to provide you with our latest update on how Wrapbook is responding to the collapse of Silicon Valley Bank (SVB) which we were using to move payroll funds. 

For workers who may have an uncashed check from Wrapbook ->To avoid any additional delays to receiving your funds, please cash any outstanding checks as soon as possible.  Failure to do so may result in delayed access to funds, as Wrapbook may need to void and reissue your payment.

Update on Sunday 3/12

Here is the latest from our CEO, Ali Javid. This is our third email communication to our customers since Friday.

• We will begin processing payroll, including outstanding worker payments, on Monday (3/13) via same-day direct deposit (ACH). We expect to be fully operational by Wednesday (3/15) at the latest.
• Some payroll processed on Friday may have gone through successfully. We are waiting for confirmation from SVB. Any payroll that was not successfully processed on Friday will be processed via same day ACH by Wednesday (3/15).
• We will reissue all uncashed paper checks this week, pending SVB’s response. SVB-issued paper checks may bounce if deposited. We recommend waiting—if a check bounces, there will be a delay to reissue based on how long it takes to reconcile. All reissued checks will be underwritten by Wrapbook. 
• Please submit payroll on Monday as is normal. We will follow up with instructions on Monday for wiring and whitelisting our accounts.

For all affected workers:

• We will resume processing payments on Monday (3/13). We will leverage same-day direct deposit to pay you as quickly as possible. You will be paid regardless of SVB’s situation, as Wrapbook will be underwriting your payment.
• All uncashed paper checks will be reissued this week. We recommend waiting to cash previously issued checks, as they may bounce. Bounced checks will cause further delays to reissue, based on how long it takes to reconcile. All reissued checks will be underwritten by Wrapbook.
• We will reimburse overdraft fees incurred due to SVB’s collapse. If you incurred overdraft fees, please email reimbursements@wrapbook.com with your name, overdraft amount, and proof of overdraft fee. 

Update on Saturday 3/11

• Wrapbook uses multiple banks for our operating funds. We have 96% of our funds outside of SVB and have a strong cash position. 
• We will use our cash position to provide liquidity to our clients, ensuring that any payroll funds with SVB are covered.
• We have remediation plans underway with another bank to resume processing payroll early next week. 
• We will reimburse cast and crew for overdraft fees incurred due to SVB’s collapse. Instructions will be emailed to those impacted. 

Our team is available to answer any questions you may have. Please reach out to us at support@wrapbook.com or directly with your customer success manager.

Our next formal communication will be no later than Monday, March 13th.