Large bank to donate $400 million to small businesses

The money will help fund minority run businesses in the U.S.

VICTORIA, Texas – Wells Fargo has announced that they will donate $400 million dollars to help small businesses. To help accelerate the recovery of small businesses, Wells Fargo will donate a large sum of gross processing fees from the paycheck protection program to help small businesses keep their doors open, retain employees and rebuild.

Majority of the effort will be to help local non-profit and/or minority small business. Wells Fargo small business growth philanthropy head Jenny Flores said minority businesses are being targeted because they are the most disproportionately impacted.

“We are seeing that over a third of Latino owned businesses and 40% of African American owned businesses closed. And we are hoping through this fund we can reopen some of those businesses and help them stay relevant and help them succeed on a long-term basis.”

The three main goals wells Fargo wishes to accomplish are to provide capital and cash relief to hurting small businesses, give technical assistance to help pivot the business’ model and to provide recovery and resiliency support.

Wells Fargo securities senior economist Mark Vinter said helping small businesses will help the economy as well.

“This assistance is not only important to the small business that are helped but it’s important to the economy. We’ve heard over and over again about how small businesses create a disproportionate share of the new jobs in the economy, that is absolutely true. We are not going to see self-reinforcing full-fledged recovery without small businesses.”

The Open for Business Fund is accepting applications from C-D-F-Is from now through August 7th. For a list of eligibility requirements along with more information about this program go to crossroads today dot com to see if you qualify.

 

Here are links for more information:

Recovery effort

Eligibility requirements

About Fund