Wells Fargo & Company (NYSE: WFC) announced today that beginning immediately, in response to the actions by the Federal Reserve, it will expand its participation in the Paycheck Protection Program (PPP) and offer loans to a broader set of its small business and nonprofit customers subject to the terms of the program.
“Wells Fargo appreciates the targeted action of the Federal Reserve to support the needs of small businesses through PPP and looks forward to expanding relief to many more small businesses and nonprofits. In the first two days alone, we received more than 170,000 indications of interest from our customers, and know there is much more need. While the asset cap does not specifically restrict Wells Fargo’s participation in this program, this action by the Federal Reserve will enable Wells Fargo to provide additional relief for our customers and communities,” said Wells Fargo CEO Charlie Scharf.
To start the process for PPP with Wells Fargo, customers must meet the overall Small Business Administration program requirements, have a Wells Fargo Business checking account as of Feb. 15, 2020, and be enrolled in business online banking.
Given the public discussion, Wells Fargo thinks it is important that we reiterate our position on the asset cap.
“While we are pleased to be able to help more small businesses through the Paycheck Protection Program, we note that the Federal Reserve’s action does not – and should not – in any way relieve us of our obligations under the consent order,” said Scharf. “I have said consistently since arriving at Wells Fargo that management has the responsibility to do the work necessary under the consent order. The consent order exists because of deficiencies that have existed at Wells Fargo for years. The work required under the consent order is clear, has been outstanding for too long, and is a prerequisite for consideration of the asset cap being lifted. While work on our consent orders is our top priority and we are devoting all necessary resources, we still have much to do. Until our work is completed to the Federal Reserve’s satisfaction, we will continue to actively make decisions on how to allocate our balance sheet to support the needs of our customers under the existing asset cap.”
