Silicon Valley Bank closure upends Jackson Township’s Patriot Software

• Patriot Software, a payroll and accounting software business, used Silicon Valley Bank to hold the funds for customer’s direct deposits.
• Financial regulators closed Silicon Valley Bank and turned its control over to the FDIC.
• Patriot Software issued guidance to its customers Friday that said it was working with other banks to ensure direct deposits could resume.

The swift collapse of Silicon Valley Bank on Friday has sent shockwaves to Stark County.

Patriot Software, a Jackson Township company that provides accounting and payroll software for millions of American businesses and their accountants, uses Silicon Valley Bank as its bank to hold the funds for the direct deposits it processes for customers, according to its website.

According to national news reports, federal regulators closed Silicon Valley Bank, the nation’s 16^th largest bank, just before noon Friday and took control of its deposits. The collapse is considered the largest U.S. bank failure since the global financial crisis more than a decade ago.

Patriot Software began fielding complaints around 9 a.m. Friday from customers whose employees hadn’t been paid through direct deposit. At that time, Patriot said its bank “has experienced a processing delay,” which meant customers may experience a delay with direct deposit. At 11 a.m., Patriot said in a message to a customer that it still expected the issue to be resolved by the end of the day.