General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsWells Fargo stops taking small-business relief loan applications
Wells Fargo is bowing out of a new federal program aimed at helping small businesses retain workers and pay bills during the coronavirus pandemic. The bank announced late Sunday that it would no longer accept new loan applications under the government's Paycheck Protection Program, which launched last week as part of Washington's $2.2 trillion economic relief package.
Wells also said it planned to lend a maximum of $10 billion through the program and that it has already received more than enough applications to reach that threshold. Any requests for loans submitted after April 5 will not be considered, according to the bank.
Since the program launched on Friday, most U.S. banks are processing loans only for existing clients. Wells Fargo's exit could shut out some of its small business customers that have not yet applied for a loan. That's especially significant because Wells Fargo arranged more small business loans than any other lender in the country last year.
The Paycheck Protection Program offers 1% interest loans to business with fewer than 500 workers. Borrowers who don't lay off workers in the next eight weeks will have their loans forgiven, along with the interest.
https://www.msn.com/en-us/money/companies/wells-fargo-stops-taking-small-business-relief-loan-applications/ar-BB12dh1J?li=BBnbfcL
FBaggins
(26,731 posts)The question is whether other banks can take advantage of it when they likely are overwhelmed serving their own small business customers.
Mosby
(16,306 posts)From the article:
A source close to Well Fargo said it has had discussions with the Fed to lift the cap in order to allow the bank to issue more loans during the coronavirus crisis, which has shut down many small businesses. But it appears the Fed has declined to change its stance.
RANDYWILDMAN
(2,672 posts)Now they are denying help to real customers, great job Wells Fargo, now we know where not to bank.
MoonlitKnight
(1,584 posts)To get out of the sanctions they are under due to shady practices.
PoindexterOglethorpe
(25,853 posts)businesses not already their clients.
They aren't shutting down completely, just going to go with the applications they already have.
While I'm not a fan of Wells Fargo, it sounds like they're doing better than a lot of banks might be.
superpatriotman
(6,247 posts)Ive only banked with them for 23 years, so...
Xolodno
(6,390 posts)They have to shoot their other foot as well.
I remember after it came out about their sales practices, the CEO of our company sent an email blast stating more or less, Wells Fargo fucked themselves. And to never do what they did....and if someone starts doing it, report it immediately to the ethics hotline.
Bet you $100 they are looking at the government loans and thinking they should get a piece of the action, with a higher interest rate that benefits them of course.
a kennedy
(29,655 posts)Posted a note on the door saying theyre closed until further notice.