Wells Fargo & Co (NYSE:WFC) still accept the expression of interest from small business customers under the SBA paycheck protection program. On the backdrop of receiving huge demand for SBA relief, the bank is advising small business customers to get small business loans at other banks.
Wells Fargo says loans window closed
Wells Fargo began the week saying the customers’ that loans window is closed. The lender advised the customers to look elsewhere for their fund needs because it has exhausted the $10 billion cap imposed by the federal regulator. However, the Fed has relaxed the asset cap by mid-week on Wells Fargo allowing it to lend more funds under the SBA relief program. As a result, the bank has started accepting EOI from small business customers. However, it again started advising the small business customers to look for funds elsewhere by Friday.
According to a statement on the website, Wells Fargo said it has received a lot of interest from customers for loans. Since it is facing longer processing times, it advises the customers to get loans from other SBA lenders.
Banks prefer SBA PPP applications to offer loans
Most banks prefer SBA PPP applicants to offer loans. However, a Chief Executive Officer of Bay Bank said it accepts applications for SBA PPP loans from non-customers. The small business customers of Wells Fargo have expressed their frustration with the bank for most of the week.
SBA PPP to pay rent, payroll, and other expenses
Small businesses in the US can access funds under SBA PPP to pay rent, payroll and meet other expenses. Wells Fargo is limiting SBA PPP loans because of the cap imposed by the Fed as a disciplinary action.
Lenders in the Tampa Bay Region works overtime
The lenders in Tampa Bay Region are working several hours until night to clear applications under the PPP (payroll protection program). PPP is designed to offer loans to non-profit organizations and businesses that employ less than 500 employees to help them pay their employees during the coronavirus crisis. They need not pay back the loan if a certain amount of the loan is spent on paying rent and salaries to the employees.