How Brex is supporting First Republic Bank customers
Pedro and Henrique
3 min read
3 min read
We at Brex are saddened to see the developments today with First Republic Bank. One of our earliest referral partners, First Republic Bank played an important role in Brex’s growth, and we’ve worked with them for more than five years on many mutual customers.
We’re doing everything we can to help Brex customers who may be impacted by these events. We’re also here to help others who may be affected — and the banking industry as a whole — navigate these events.
The safety of our customers’ money is our top priority. Brex has no material exposure to First Republic Bank. Additionally, our customers can feel confident knowing that our products were designed to minimize risk and exposure to any one institution.
Having seen customers face similar situations with Silicon Valley Bank and Signature Bank in March, we have tools and programs in place to help those affected today. Here are some of the ways we’re helping to ensure that our First Republic Bank customers are supported by Brex.
Brex Card and Payment Flexibility
Our priority is helping First Republic Bank customers maintain business continuity and operating cash flow right now, and we are maintaining their current credit limit until Friday, May 5. Additionally, for those with card payment dates between May 1 and May 7, we're moving the due date to Monday, May 8. The situation with First Republic Bank is fluid and we will continue updating customers as things evolve.
Because Brex uses the cash balance from customers’ connected banks and/or bank statements to determine their credit limit, we encourage customers to consider connecting a new account and/or bank statements in their Brex dashboard to ensure there’s no disruption to their credit limit. For those looking for a new deposit relationship, we offer Brex business accounts as an option.
FDIC insurance up to $6M
We designed our Brex business account, a cash management account, to give customers the benefits of money movement and money storage while providing the least exposure to any individual bank. Customers can protect their balance with up to $6M in FDIC insurance through our partner banks, including JPMorgan Chase, as well as invest some or all of their balance in a government-backed money market fund (MMF) held by Bank of New York Mellon to earn 4.91% yield. Additionally, 100% of funds — even when invested in MMF — are always available for withdrawal, as Brex never uses deposits for lending purposes. Read more about the structure of Brex accounts here.
Moving forward together
Situations like First Republic Bank and SVB impact the entire industry, and we feel incredibly fortunate to be in a position to continue serving our customers well. We don’t take for granted the trust placed in us by our customers, investors, banking partners, lenders, and regulators.
Brex will continue working hard to support our customers. If you need us, don’t hesitate to reach out here.
Pedro and Henrique