Wells Fargo takes issues with a recent report from Accoutable (which was picked up and posted by Valuewalk) regarding Wells Fargo’s PPP lending to small businesses. Below is a statement the bank has sent to Valuewalk.
As part of Wells Fargo’s participation in PPP, we did not collect any racial or ethnicity data as part of the application process and were never asked to do so by the SBA. Therefore any reports regarding this type of information around the data are not based on the information customers provided to us or what we submitted to the SBA.
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Wells Fargo's PPP Lending Program
From the beginning of the PPP lending program, Wells Fargo has been committed to serving as many small businesses as possible and particularly those hardest hit by the current environment. In fact, 41% of Wells Fargo’s booked PPP applications were for businesses in low- or moderate-income areas (as defined by the Community Reinvestment Act) or ≥ 50% minority census tracks (based on the latest census data).
Other data that supports our commitment (as reported by the SBA) includes:
- Wells Fargo’s average PPP loan size is just over $56,000
- This is the second lowest among the top 15 PPP lenders
- 93% of loans were for less than $150,000
Donating PP Processing Fees To Help Small Businesses
Finally, it is important to note that Wells Fargo will be donating all gross PPP processing fees - approximately $400 million - to help small businesses keep their doors open, retain employees, and rebuild via the recently announced Open for Business Fund. Also of note is that one of our first grantees of the fund is Expanding Black Business Credit Initiative (EBBC), which will support the launch of the Black Vision Fund to increase the flow of capital to Black-led CDFIs for transformational work to close the racial wealth gap in African American communities.
With the passing of the extension of the program, as well as the start of the forgiveness process, we know our work is far from over and we will continue working tirelessly to support our customers and the wider small business community both within the context of the PPP and beyond.
What do you think? Tell us in the comments section.