Wells Fargo stops taking small-business relief loan applications

[Yo_Mama_Been_Loggin]

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]

1. Wow... they do seem committed to losing as many customers as possible, don't they?

The question is whether other banks can take advantage of it when they likely are overwhelmed serving their own small business customers.

[Mosby]

8. They are limited because of the fed cap.

From the article:

The Federal Reserve in 2018 capped the amount of loans Wells Fargo can make after the bank was earlier revealed to have created millions of phony accounts as well as committed a string of other consumer abuses.

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. Funny didn't they make up fake customers at one time ?

Now they are denying help to real customers, great job Wells Fargo, now we know where not to bank.

[MoonlitKnight]

3. They are trying to use this as leverage

To get out of the sanctions they are under due to shady practices.

[PoindexterOglethorpe]

4. At least they were taking applications from

businesses not already their clients.

Since the program launched on Friday, most U.S. banks are processing loans only for existing 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]

5. Glad I didn't waste my time

I’ve only banked with them for 23 years, so...

[Xolodno]

6. Wasn't good enough to shoot their self in the foot.

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]

7. A branch in one of our local community's has just shut it's doors!!!!!

Posted a note on the door saying they’re closed until further notice.