Wells Fargo to expand small business rescue lending with Fed exemption

Wells Fargo to expand small business rescue lending with Fed exemption


WASHINGTON – The Federal Reserve is temporarily lifting restrictions on Wells Fargo’s ability to make certain commercial loans to help alleviate a crushing backlog of requests for federally backed loans to small business decimated by the worsening Coronavirus crisis.

The nation’s fourth-largest bank announced over the weekend it would disburse up to $10 billion in emergency loans to nonprofits and firms with fewer than 50 employees as part of the Paycheck Protection Program (PPP), the massive small business rescue program signed into law last week that has seen overwhelming demand.

But the bank could not participate beyond that level due to a cap on assets federal regulators placed on Wells Fargo earlier this year after the bank agreed to pay $3 billion to settle claims related to its creation of millions of fake accounts to meet sales goals between 2002 and 2016.

Small business stampede:Marco Rubio says non-stop demand for small business rescue program is straining capacity


Source link

By Javier Manning

Javier has been in the field of content writing for almost 8 Years as he hails from the Biotechnology background. The edifying articles portray her craving towards language. His keen hobby of reading technological innovations related books or articles has sown the seed of being a well-versed editor with the current scenario of numerous industry verticals. He is one of the valuable assets to this publication. The Industry News Press has awarded him with a senior editors post based on his skillful performance to date.