Wells Fargo Supports Communities in Need with PPP Profits
NEC member Wells Fargo recently expressed its support for President Biden’s proposed $1.9 trillion economic stimulus plan, and re-upped its commitment to allocate all profits from the Paycheck Protection Program (PPP) to support communities in need. The announcement comes as a new round of PPP funding, passed as part of the CARES Act, was released on January 19, 2021.
During the first round of PPP, Wells Fargo provided approximately 194,000 loans. The average loan amount was $54,000, and 41 percent of those originated in low-to-moderate income and majority minority census tract communities. Rather than profit from the fees associated with these loans, Wells Fargo established the Open for Business Fund, committing $400 million in gross processing fees to provide targeted resources to support Black, African American, Hispanic, Latino, Asian American, Native American, veteran, and women-owned businesses . To date, the fund has deployed more than $84 million in philanthropic capital to Community Development Financial Institutions, thereby supporting an estimated 16,000 struggling, minority-owned small businesses keep 50,000 small business jobs.
“Throughout this pandemic, our primary concern has been the safety and well-being of our employees, customers, and the communities we serve. Wells Fargo remains fully committed to meeting their needs in these tumultuous times and we are committed to helping rebuild our economy, support small businesses, and preserve jobs that serve as the backbone of communities and neighborhoods across the country,” said CEO Charlie Scharf in a statement.
The New England Council commends Wells Fargo for its ongoing support of our region’s small businesses, which we know are the lifeblood of our economy. Read Wells Fargo’s statement here.
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