Wells Fargo & Company (WFC) has reportedly received strong interest in the PPP (Paycheck Protection Program). The company has declared that it aims to distribute close to USD 10 billion to small business customers, under the PPP requirements. The firm plans to serve two categories of its customer population – smaller business establishments having lesser than 50 employees and nonprofits. WFC has apparently obtained forms from customers who have expressed interest in the PPP. The firm anticipates that these customers expressing interest will fill its capacity to lend under the program.
Charlie Scharf, CEO, Wells Fargo, has been quoted to state that the company, since the beginning of this crisis, has been providing enough liquidity and credit to its customers to help them survive these trying times. In March, the firm extended around USD 70 billion in increased commitments and outstanding loans to numerous consumers, companies, and businesses in the U.S., while also deferring over 700,000 payments, representing nearly USD 1.8 billion, and delivering more than 750,000 fee waivers, surpassing a value of around USD 28 million, for its customers affected by the pandemic, Scharf said.
The CEO cleared that the company is highly committed in serving its customers during such challenging times, however it works on certain restrictions and may not be able to serve as many customers as it would like, under the PPP. Despite the fact that most businesses have been impacted by the pandemic, smaller business establishments having lesser than 50 employees and non-profits with lesser resources deserve more attention at the moment, on account of which the firm will channel its efforts more toward these two entities under the PPP, he further claimed.
As per sources familiar with the knowledge of the matter, the firm also declared that whatever fees would be generated from the program, will be distributed to nonprofits supporting smaller businesses, as charitable grants.
Source Credits: https://business.financialpost.com/pmn/press-releases-pmn/business-wire-news-releases-pmn/wells-fargo-receives-strong-interest-in-the-paycheck-protection-program-ppp