Etsy sellers hit by Silicon Valley bank collapse, payments delayed

The collapse of the Silicon Valley bank hit moms and other small business owners who sell online on Etsy.

A Brooklyn-based shopping site notified store owners that deposits they were expecting on Friday would be delayed “due to recent developments regarding Silicon Valley Bank, which Etsy is using to facilitate payouts to some merchants.”

The news made some shopkeepers go berserk and others consider putting their windows on hold.

“They say they will try to pay us on Monday, but they are not sure. So they just keep our funds and don’t pay us, which is a bit scary. Like I’m going crazy,” one Etsy seller wrote on TikTok.

“I am a mother of three children. I have a small business,” said 32-year-old Amber Fields from Louisville, Kentucky.

Fields, who sells stickers, utensils and t-shirts under the name Little Miss Lovely Creations, added: “These funds feed my family and pay my bills.”

Another woman on TikTok with the username amgeee1 said she has been selling Etsy since 2015 and the delay could be devastating to her finances.

“I have to pay my mortgage in a few days and I can’t because my money is blocked,” she said.

Nina Bisset of Washington, D.C., a resident of an Etsy shop called “Nina Loves Fun,” told The Post that she was expecting $700 on Friday.

She sells disco balls and vintage accessories.

“This is my only source of income right now,” Bissett, 32, said.

“Obviously I use this money to pay bills and also to buy materials needed to store things that I have in my shop.”

Friday’s sudden bank collapse — the second-biggest in US history — also devastated Camp, a New York-based retailer that has stores in Manhattan and Brooklyn.

On Friday, the company sent out an email to shoppers offering a 40% discount on products to encourage sales and stay afloat.

An Etsy spokesperson said: “Our teams have been working around the clock to implement the solution, and we expect to pay sellers through our other payment partners within the next few business days.”