Immigration Lawyer Blog
In this video, attorney Jacob Sapochnick discusses the recent collapse of the Silicon Valley Bank, and its repercussions on the startup world and foreign tech workers. The Silicon Valley Bank’s collapse is cited as the largest bank failure since the 2008 financial crisis. The bank was once responsible for managing billions of dollars in client funds and loans. What will be the ripple effect of its collapse on immigrant and non-immigrant tech workers on visas?
Keep on watching to find out more.
Overview
Silicon Valley Bank, an institution that once lent billions of dollars in funding to tech startups has collapsed. Its deep relationships within the startup community have left both immigrant and non-immigrant workers vulnerable, as they scramble to find stable ground. The impact of its collapse has been widespread. Hundreds of startups relied on the funding provided by SVB to maintain their operations and keep immigrant and non-immigrant visa workers on payroll. Additionally, SVB itself employed dozens of foreign tech workers.
When news broke of the bank’s collapse, many startups withdrew their funds from the bank and began to question the security of the banking system as a whole. SVB’s collapse may be a signal that something worse is on the horizon, which may lead tech companies to freeze hiring and potentially lay off workers many of which are in the United States on visas.
As a foreign worker, losing a job is not just losing a paycheck. It means your legal status in the United States could ultimately be put in jeopardy. Workers who have been laid off will be forced to find a new employer within 60 days, or risk having to depart the United States.
In recent months, we began to see massive layoffs throughout Silicon Valley including those at Twitter, Meta, Facebook, and Google. Now the bank’s collapse could set in motion an extensive hiring freeze and a shrinking workforce in the months ahead. This is surely unwelcome news for tech workers currently in the United States on H-1B visas. The climate of uncertainty and panic caused by the bank’s collapse, could leave employers with cold feet when it comes to sponsoring workers for employment-based green cards.