Wells Fargo Provided More Than 280,000 Paycheck Protection Program Loans to Help the Smallest of Small Businesses in Need

Rhea-AI Summary

Wells Fargo reported the funding of approximately 282,000 Paycheck Protection Program (PPP) loans, totaling nearly $14 billion, to support small businesses during the COVID-19 pandemic. These loans helped maintain 1.7 million jobs, with an average loan size of $50,000, the lowest among major financial institutions. Notably, 42% of loans were provided to small businesses in low-to-moderate income areas. Furthermore, Wells Fargo initiated the $420 million Open for Business Fund, aimed at small business recovery, alongside a $50 million investment in minority depository institutions to boost economic growth.

Positive

• Provided 282,000 PPP loans totaling nearly $14 billion, preserving 1.7 million jobs.
• Average loan amount of $50,000, the lowest among large financial institutions.
• 42% of loans targeted small businesses in low-to-moderate income neighborhoods.
• Created a $420 million Open for Business Fund to support small business recovery.
• Invested $50 million in minority depository institutions to promote economic growth.

Negative

• None.

Wells Fargo today announced it provided approximately 282,000 Paycheck Protection Program (PPP) loans through its 2020 and 2021 lending to support small businesses trying to survive the COVID-19 pandemic. Total lending was nearly $14.0 billion helping keep 1,739,000 Americans employed. The average loan amount for customers was $50,000, the lowest among all large financial institutions*, and 42% of loans were for small businesses in low-to-moderate income neighborhoods, or those historically underserved.

Male small business owner holding a sign that says “Come in we’re open.” (Photo: Wells Fargo)

In its work with the PPP starting in April 2020, Wells Fargo reported:

• 282,000 funded PPP loans totaling nearly $14.0 billion helping keep 1,739,000 Americans employed
• $50,000 – average loan size, the lowest among all large financial institutions*
• 95% of loans were under $150,000
• 79% of loans were under $50,000
• 95% of loans were for companies with fewer than 20 employees
• 85% of loans were for companies with fewer than 10 employees
• 42% of loans were for small businesses in low-to-moderate income neighborhoods, or those historically underserved
• Created the Wells Fargo Open for Business Fund, now a roughly $420 million small business recovery effort by committing to donate all gross processing fees from PPP loans funded in 2020

“Our goal from the very beginning of the PPP was to help as many small businesses as we could as they are a vital part of our economy, and we admire the unwavering grit and perseverance they’ve displayed throughout the last year,” said Mary Mack, CEO of Consumer and Small Business Banking at Wells Fargo. “As soon as the CARES Act was signed announcing the PPP, our team quickly jumped into action. In addition to the teams who work with small businesses every day, we tapped thousands of Wells Fargo employees from across the company who quickly pitched in so they could help customers get PPP loans. The PPP was truly a cross-Wells Fargo effort, and that spirit carries on today as we continue to support those small businesses on their road to recovery.”

Support for diverse small businesses beyond the PPP

Support for small businesses over the last year extended past the PPP. In 2020, Wells Fargo provided accommodations to nearly 50,000 small business customers, totaling $143 million in deferred payments. Overall, the Open for Business Fund is expected to help Community Development Financial Institutions (CDFIs) and nonprofits enable $1 billion in available financing and 7.5 million hours of technical assistance for small business owners, helping them close the gap on rent, utilities and employee pay, while accessing expertise to adapt their business for the future. Through May 31, 2021, the Open for Business Fund is helping preserve a projected 90,000 jobs.

Wells Fargo also invested $50 million to enable minority depository institutions (MDIs) to stimulate economic growth in Black and African American communities in 2020 and 2021 as a part of the bank’s larger commitment to foster an inclusive recovery. Since that time, 13 MDIs have been named to receive equity investments.

And, through the Wells Fargo campaign “We made a way. Together,” small business owners looking for support can visit www.wellsfargo.com/together to read tips and ideas on how to weather the storm, and identify funding options and resources they may need in the coming months. The site also features inspiring stories of resilience from others who have made a way to keep their doors open through one of the toughest economic downturns in history.

*U.S. Small Business Administration

About Wells Fargo

Wells Fargo & Company (NYSE: WFC) is a leading financial services company that has approximately $1.9 trillion in assets and proudly serves one in three U.S. households and more than 10% of all middle market companies and small businesses in the U.S. We provide a diversified set of banking, investment and mortgage products and services, as well as consumer and commercial finance, through our four reportable operating segments: Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth & Investment Management. Wells Fargo ranked No. 30 on Fortune’s 2020 rankings of America’s largest corporations. In the communities we serve, the company focuses its social impact on building a sustainable, inclusive future for all by supporting housing affordability, small business growth, financial health and a low-carbon economy. News, insights and perspectives from Wells Fargo are also available at Wells Fargo Stories.

Additional information may be found at www.wellsfargo.com | Twitter: @WellsFargo.

Cautionary Statement about Forward-Looking Statements

This news release contains forward-looking statements about our future financial performance and business. Because forward-looking statements are based on our current expectations and assumptions regarding the future, they are subject to inherent risks and uncertainties. Do not unduly rely on forward-looking statements as actual results could differ materially from expectations. Forward-looking statements speak only as of the date made, and we do not undertake to update them to reflect changes or events that occur after that date. For information about factors that could cause actual results to differ materially from our expectations, refer to our reports filed with the Securities and Exchange Commission, including the “Forward-Looking Statements” discussion in Wells Fargo’s most recent Quarterly Report on Form 10-Q as well as to Wells Fargo’s other reports filed with the Securities and Exchange Commission, including the discussion under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2018, available on its website at www.sec.gov.

News Release Category: WF-SB

View source version on businesswire.com: https://www.businesswire.com/news/home/20210629005655/en/

FAQ

What is the total amount of PPP loans Wells Fargo provided?

Wells Fargo provided nearly $14 billion in Paycheck Protection Program loans.

How many jobs did Wells Fargo's PPP loans help preserve?

The PPP loans helped preserve approximately 1.739 million jobs.

What was the average loan size of Wells Fargo's PPP loans?

The average loan size for Wells Fargo's PPP loans was $50,000.

What percentage of PPP loans were given to businesses in low-to-moderate income neighborhoods?

42% of the PPP loans were directed to businesses in low-to-moderate income neighborhoods.

What is the Open for Business Fund by Wells Fargo?

The Open for Business Fund is a $420 million initiative by Wells Fargo to support small business recovery.