Instead, they opened up for inquiries only and then shut that down on April 5. I have a checking account there so I should have been eligible for a loan. So should one of my best clients. Now, I'll need to start looking for another opportunity.
Apparently the reason Wells Fargo shut down its lending so quickly is that they are under limitations set to punish them for cheating their customers earlier. Here's the note from Wells Fargo:
We know that these are tough times, and we’re committed to helping you get through this. We announced on April 5, 2020 that Wells Fargo is targeting to distribute a total of $10 billion to small business customers under the requirements of the Paycheck Protection Program (PPP) and will focus on serving two segments: nonprofits and small businesses with fewer than 50 employees.
We have received forms from customers expressing interest in the PPP that we expect will fill the company’s capacity to lend under the program, as Wells Fargo continues to operate under existing asset cap limitations. Given the exceptionally high volume of requests we have already received, we will not be able to accept any additional requests for a loan through the Paycheck Protection Program. We will review all expressions of interest submitted by customers via our online form through April 5 and provide updates in the coming days.
We have also announced that fees generated through the program will be quickly returned to small businesses as charitable grants to non-profits that support small businesses, which is a focus of Wells Fargo’s philanthropic efforts.At this point, I'm exploring all the other local lenders. I'll be happy to abandon my Wells Fargo checking account and go with someone else. Maybe Bank of America.
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