Wells Fargo Commitment Could Potentially Result in Billions for Small Businesses

By Stacy M. Brown, NNPA Newswire Senior Correspondent
@StacyBrownMedia

In April, Wells Fargo announced it would donate gross proceeds from the Paycheck Protection Plan to nonprofits working with small businesses.

This month, the bank has ramped up its efforts by unveiling the details of an approximately $400 million initiative to help small businesses impacted by the ongoing COVID-19 pandemic.

The goal is to help keep the doors of small businesses open, retain employees, and rebuild.

Through Wells Fargo’s new Open for Business Fund, the company will engage nonprofit organizations to provide capital, technical support, and long-term resiliency programs to small businesses, emphasizing those that are minority-owned businesses.

“We realized early on that small businesses were taking the brunt of what was happening with COVID-19 and the economic slowdown that occurred,” said Jenny Flores, Wells Fargo’s head of small business growth philanthropy.

“We also noticed that diverse individuals were having a very negative impact, and with the data, it was coming to 41 percent or 450,000 Black-owned businesses closed when COVID hit. That is a disproportionate impact not only to the entrepreneurs but also to the employees they have and the pocketbook,” Flores stated.

Through June 30, Wells Fargo funded loans under the PPP for more than 179,000 customers, with an average loan amount of $56,000, totaling $10.1 billion.

Of the loans made, 84 percent of those are for companies with less than ten employees; 60 percent were for amounts of $25,000 or less; and, 90 percent of these applicants had $2 million or less in annual revenue.

Given the federal government’s extension of the PPP, Wells Fargo will reopen its PPP loan application process to eligible customers as soon as possible through a link in Business Online Banking, the bank noted in a news release.

Additionally, the Wells Fargo Open for Business Fund’s initial grants will allocate $28 million to Community Development Financial Institutions (CDFIs), also known as nonprofit community lenders.

The grants are aimed at empowering Black and African American-owned small businesses, which the National Bureau of Economic Research said are closing at nearly twice the rate of the industry.

Among the first grantees are Expanding Black Business Credit Initiative (EBBC), which will support the launch of a Black Vision Fund to increase the flow of capital to Black-focused CDFIs for transformational work to close the racial wealth gap in African American communities.

The CDFIs will also receive capital for urgent deployment to impacted businesses in the Mid-Atlantic, Southeast, and Midwest.

Further, a Local Initiatives Support Corporation (LISC) will provide grants and low-cost capital to more than 2,800 entrepreneurs, focusing on preventing loss in revenue, sustaining employment, and averting vacancies among vulnerable small business owners in urban and rural markets nationwide.

“This is an extension of the commitment we had to diverse businesses,” Flores noted.

“Small businesses need cash to open again, and we are putting $260 million for community development financial pocket lenders that have a track record of reaching diverse communities. We want them to be able to do new loans and to have grant money.”

Wells Fargo counts as one of the top PPP lenders in the country and has spent a lot of time understanding various strategies to assist small businesses, Flores declared.

“We have key members across the country, and I talk to entrepreneurs directly,” she said.

“This reflects a very thoughtful approach, one that is based on really putting the customer right at the center, listening to what they need. This has potentially $1 billion of impact in a three-year period,” Flores added.

“When they get the loans and recycle that and then for every million CDFI loans out to small businesses, they can support 18 businesses and create 31 jobs.

“Hence, if you take the $250 million and work through it, it’s thousands of businesses we’re impacting in such a positive way. We’re really proud of the opportunity we have to collaborate with CDFIs and particularly those who are led by diverse entrepreneurs.”

October 16, 2023, HOUSTON, TX – Congressional Candidate Amanda Edwards has raised over $1 million in less than 4 months, a substantial sum that helps bolster the frontrunner status of the former At-Large Houston City Council Member in her bid for U.S. Congress. Edwards raised over $433,000 in Q3 of 2023. This strong Q3 report expands on a successful Q2 where Edwards announced just 11 days after declaring her candidacy that she had raised over $600,000. With over $829,000 in cash-on-hand at the end of the September 30th financial reporting period, Edwards proves again that she is the clear frontrunner in the race. “I am beyond grateful for the strong outpouring of support that will help me to win this race and serve the incredible people of the 18th Congressional District,” said Edwards. “We are at a critical juncture in our nation’s trajectory, and we need to send servant leaders to Congress who can deliver the results the community deserves. The strong support from our supporters will help us to cultivate an 18th Congressional District where everyone in it can thrive.” Edwards said. “Amanda understands the challenges that the hard-working folks of the 18th Congressional District face because she has never lost sight of who she is or where she comes from; she was born and raised right here in the 18th Congressional District of Houston,” said Kathryn McNiel, spokesperson for Edwards’ campaign. Edwards has been endorsed by Higher Heights PAC, Collective PAC, Krimson PAC, and the Brady PAC. She has also been supported by Beto O’Rourke, among many others. About Amanda: Amanda is a native Houstonian, attorney and former At-Large Houston City Council Member. Amanda is a graduate of Eisenhower High School in Aldine ISD. Edwards earned a B.A. from Emory University and a J.D. from Harvard Law School. Edwards practiced law at Vinson & Elkins LLP and Bracewell LLP before entering public service. Edwards is a life-long member of St. Monica Catholic Church in Acres Homes. For more information, please visit www.edwardsforhouston.com

As September 13th rolls around, we extend our warmest birthday wishes to the creative powerhouse, Tyler Perry, a man whose indomitable spirit and groundbreaking work have left an indelible mark on the world of entertainment. With his multifaceted talents as an actor, playwright, screenwriter, producer, and director, Tyler Perry has not only entertained but also inspired audiences worldwide, particularly within the African-American community, where his influence and role have been nothing short of powerful. Born in New Orleans, Louisiana, in 1969, Tyler Perry’s journey to stardom was a path riddled with adversity. Raised in a turbulent household, he found refuge in writing, using it as a therapeutic outlet. This period of introspection gave rise to one of his most iconic creations, Madea, a vivacious, no-nonsense grandmother who would later become a beloved figure in Perry’s works, offering a unique blend of humor and profound life lessons. Despite facing numerous challenges, including rejection and financial struggles, Perry’s determination and unwavering belief in his abilities propelled him forward. In 1992, he staged his first play, “I Know I’ve Been Changed,” which, although met with limited success, was a pivotal moment in his career. Unfazed by initial setbacks, Perry continued to hone his craft, and by 1998, he had successfully produced a string of stage plays that showcased his storytelling prowess.

Calling all teenage student-athletes! If you have dreams of playing college soccer and wish to represent an HBCU, the HBCU ID Camp is your golden opportunity. From 8 am to 5 pm on November 11-12, Houston Sports Park will transform into a hub for aspiring male and female soccer players. Coaches from HBCUs across the nation will be present to evaluate, scout, and offer valuable feedback. Moreover, they might even spot the next soccer prodigy to join their collegiate soccer programs. This camp is not just about honing your soccer skills but also a chance to connect with the HBCU soccer community. You’ll learn the ins and outs of what it takes to excel on the field and in the classroom, which is crucial for a college athlete. The HBCU ID Camp is an excellent platform to network with coaches, learn from experienced athletes, and take the first steps toward your college soccer journey. To secure your spot at this incredible event, don’t forget to register [here](insert registration link). Space is limited to 120 participants, so make sure to reserve your place before it’s too late. It’s time to turn your dreams of playing college soccer into a reality.

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