Internal Documentation

Bank Accounts

Primary Checking Account

  • Financial Service: Bluevine (Fintech, front-end service)
  • Depository Bank: Coastal Community Bank
    • Holds our funds.

Key Facts:

  • Bluevine is a fintech platform that serves as a front-end to Coastal Community Bank.
  • Sweep Network: Bluevine automatically sweeps balances, offering FDIC insurance for amounts up to $3M.
  • Interest Rate: *Free tier: 2% APR on balances up to $250K. *Paid tier: 4.25% APR on balances up to $3M (we use the paid tier).

Account Access & Security:

  • We do not share our private account numbers. Of the multiple Bluevine accounts we hold, only two are shared externally.
  • “Public’’ Accounts (used for contracting and external purposes):
    • Transfer Account (Transfers Inbox): Receives funds from lenders/investors.
    • Current Account: Handles customer payments and bill payments. This account has a maximum balance, and excess funds are swept once the maximum balance is reached.
  • Private Accounts (account details not shared):
    • Equity: Tracks equity and retained earnings.
    • Kresge Proceeds: Dedicated to the Kresge loan drawdown.
    • Main Checking: Linked to our debit card, with minimal funds kept for security purposes.

Novo Checking Account

  • Depository Bank: Middlesex Federal Savings
    • Allows us to receive check payments, providing an alternative when issues arise with Bluevine.
  • Use Case: This account is primarily used for customers’ check processing. By utilizing Novo, we can ensure smoother handling of such payments.

Secondary Accounts

  • Depository Bank: Locus (Virginia-based non-profit CDFI)
    • Our business Money Market Account (MMA)
  • Interest Rate: 2%
  • Purpose: Serves as a backup to the primary account, funded to cover at least one payroll run in case we lose access to the primary account.
  • Key Contact: Tim Grimes (our banker).
  • Mission Alignment: Locus provides an interest-bearing small business account, selected for its alignment with our values.

Alternative Banks Considered: (lastly considered in 2023)

  • Beneficial State Bank: CA-based for-profit B-Corp CDFI (less attractive rates, fees for basic services).
  • Amalgamated Bank: Publicly traded B-Corp (less attractive rates, subpar sales process).
  • Carver Federal Savings Bank: Black-owned bank (requires in-person account setup with long processing times).
  • Lower Eastside People’s Mutual Credit Union: Non-profit (unclear membership process, less attractive rates).

Accounts in Transition

These accounts are being phased out by the end of 2024:

  • Silicon Valley Bank Accounts: Will be closed.

Visibility

This document is confidential and is a proprietary work product of Cadence OneFive. The information contained herein may not be copied or distributed without the specific written consent of Cadence OneFive.